Quebec’s decision to reintroduce a draft resolution regarding member-funded pension plans(MFPPs)could result in a low-risk form of plan attractive to employers, according to Watson Wyatt.
“Employers with employees in Quebec will be particularly interested in the progress of the 2006 Draft Regulation, as it may result in a new, appealing form of pension plan with minimal employer investment and risk,” says its InfoFlash newsletter.
Funding for these plans would be borne by active plan members, along with a required employer contribution. Plan members would bear the risk of investment loss and the advantage of surplus ownership.
Only new plans could be established as MFPPs and existing plans cannot be amended to become MFPPs.
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