43 Questions
What was the main reason for the creation of Multi-Employer Pension Plans (MEPPs)?
To provide retirement benefits to workers in various industries.
Which type of MEPP is typically established by trade unions or collective bargaining?
Classic MEPP
What is a common feature of Public Sector MEPPs like OTPP or OMERS?
Resemblance to single employer Defined Benefit plans.
What unique advantage do MEPPs offer to employers and plan members in terms of costs?
Reduced costs for employers through shared administration.
What role do Unions play in ensuring employer commitments in a MEPP?
Unions enforce timely payments from employers as per agreements.
Why are Multi-Employer Pension Plans (MEPPs) considered cost-effective for both employers and workers?
Pooling assets reduces risks for workers and lowers costs for employers.
What is the main distinguishing characteristic of a classic MEPP?
Fixed employer contributions determined by the government
What is the main purpose of a written participation agreement for a MEPP?
To provide trustees with a direct contractual relationship with employers
What happens in Nova Scotia and Ontario if there is no reciprocal transfer agreement in place?
Termination of the pension plan is allowed
How are pension credits and pension adjustments (PAs) determined for a Target Benefit MEPP?
Similar to single employer pension plans
When does a Past Service Pension Adjustment (PSPA) arise in SMEPPs?
When the member contributes to post-1989 past service benefits
What is a typical responsibility of MEPP trustees according to the text?
Avoiding conflicts of interest
How do DB/Target Benefit MEPPs calculate pension adjustments (PAs)?
$600 offset in PA formula based on portion of year worked
What does a PSPA equal in SMEPPs?
$ member's past service contribution made in a year
Which approach describes Contract Admin for MEPPs?
"Outsourced to unrelated person, organization, or firm"
What is the main advantage of the Salaried Self Admin approach for MEPPs?
Tailored and personal service
What is a possible disadvantage of a Multi-Employer Pension Plan (MEPP) for employers and plan members?
Complex recordkeeping due to tracking member services with multiple employers
Which of the following criteria must be met for a registered plan to be considered a MEPP under the Income Tax Act (ITA)?
Diversified participation across multiple employers is ensured
Why is an adverse plan amendment significant in the context of a Multi-Employer Pension Plan (MEPP)?
It requires advance notice to members about changes
What differentiates the funding approach of provincial pension regulators towards Defined Benefit (DB) MEPPs?
They ensure long-term sustainability without considering immediate termination
In what way do MEPPs relate to member termination of employment?
Portability provisions vary based on the number of employers involved
What is a key feature that distinguishes a specified multi-employer pension plan (SMEPP) from other types of plans?
Trustees not controlled by participating employers
How does the Income Tax Act (ITA) define a Multi-Employer Pension Plan (MEPP)?
A plan where multiple unrelated employers in the same industry contribute
What is a potential issue surrounding fund ownership in Multi-Employer Pension Plans (MEPPs)?
Ownership not clearly defined in agreements
What role does joint governance play in Multi-Employer Pension Plans (MEPPs)?
May affect decision-making due to shared governance
Why might some jurisdictions not mandate funding for MEPP deficits?
To reduce the financial burden on participating employers
How does membership eligibility in a Multiple Employer Pension Plan (MEPP) differ from a Single Employer Pension Plan (SEPP)?
Membership in MEPPs is based on hours worked or contributed, while SEPPs have fixed membership criteria.
What is a unique contribution remittance requirement for Multiple Employer Pension Plans (MEPPs)?
Trustees are responsible for ensuring that employee contributions are made in cash only.
How do general plan termination rules for Multiple Employer Pension Plans (MEPPs) differ from those of Single Employer Pension Plans (SEPPs)?
MEPPs may experience surplus distribution issues upon wind-up, which is uncommon in SEPPs.
What is a special consideration under ITA rules specific to Single Employer Pension Plans (SEPPs) as compared to Multiple Employer Pension Plans (MEPPs)?
SEPP employee contributions are not subject to maximum limits as they are in MEPPs.
What differentiates the administration of Multiple Employer Pension Plans (MEPPs) from Single Employer Pension Plans (SEPPs)?
MEPP Trustees are responsible for documentation upkeep, while SEPP trustees focus on database maintenance.
What is a key operational difference between Multiple Employer Pension Plans (MEPPs) and Single Employer Pension Plans (SEPPs) regarding membership?
In MEPPs, workers with multiple employers within a year can be members, while SEPPs only allow single employer's employees.
What unique duty related to Pension Plan Governance Guideline issued by CAPSA applies to Multiple Employer Pension Plans (MEPPs)?
Ensuring trustee education and training only applies to MEPP governance activities.
MEPPs often allow membership for workers with only one employer within a year.
False
The administration of a MEPP is usually handled by individual employers only.
False
Contributions to a MEPP must be remitted to the union within 60 days after the due date.
False
MEPPs are more likely to wind up due to employer withdrawal compared to SEPPs.
False
SMEPPs are subject to maximum pension rules for pre-1992 service.
False
ITA leave-of-absence limits apply in the same way to SMEPPs as to SEPPs.
False
Employee contribution limits for SMEPPs are subject to the same ITA maximum limits as SEPPs.
False
ITA rules limiting benefits for connected persons apply to SMEPPs.
False
Certain limits on bridging benefits apply to MEPPs.
False
Trustee education and training is not a high-level duty related to MEPP governance according to CAPSA guidelines.
False
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