Module 9
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What was the main reason for the creation of Multi-Employer Pension Plans (MEPPs)?

  • To reduce costs for employers by eliminating pensions.
  • To increase worker turnover in certain industries.
  • To manage risks and costs associated with pensions.
  • To provide retirement benefits to workers in various industries. (correct)

    • Which type of MEPP is typically established by trade unions or collective bargaining?

  • Public Sector MEPP
  • Classic MEPP (correct)
  • Cooperative MEPP
  • Private Sector MEPP

    • What is a common feature of Public Sector MEPPs like OTPP or OMERS?

  • Flexible pension options based on individual preferences.
  • Funding by individual employers rather than collective entities.
  • Defined Contribution plans instead of Defined Benefit plans.
  • Resemblance to single employer Defined Benefit plans. (correct)

    • What unique advantage do MEPPs offer to employers and plan members in terms of costs?

    <p>Reduced costs for employers through shared administration.</p> Signup and view all the answers

    What role do Unions play in ensuring employer commitments in a MEPP?

    <p>Unions enforce timely payments from employers as per agreements.</p> Signup and view all the answers

    Why are Multi-Employer Pension Plans (MEPPs) considered cost-effective for both employers and workers?

    <p>Pooling assets reduces risks for workers and lowers costs for employers.</p> Signup and view all the answers

    What is the main distinguishing characteristic of a classic MEPP?

    <p>Fixed employer contributions determined by the government</p> Signup and view all the answers

    What is the main purpose of a written participation agreement for a MEPP?

    <p>To provide trustees with a direct contractual relationship with employers</p> Signup and view all the answers

    What happens in Nova Scotia and Ontario if there is no reciprocal transfer agreement in place?

    <p>Termination of the pension plan is allowed</p> Signup and view all the answers

    How are pension credits and pension adjustments (PAs) determined for a Target Benefit MEPP?

    <p>Similar to single employer pension plans</p> Signup and view all the answers

    When does a Past Service Pension Adjustment (PSPA) arise in SMEPPs?

    <p>When the member contributes to post-1989 past service benefits</p> Signup and view all the answers

    What is a typical responsibility of MEPP trustees according to the text?

    <p>Avoiding conflicts of interest</p> Signup and view all the answers

    How do DB/Target Benefit MEPPs calculate pension adjustments (PAs)?

    <p>$600 offset in PA formula based on portion of year worked</p> Signup and view all the answers

    What does a PSPA equal in SMEPPs?

    <p>$ member's past service contribution made in a year</p> Signup and view all the answers

    Which approach describes Contract Admin for MEPPs?

    <p>&quot;Outsourced to unrelated person, organization, or firm&quot;</p> Signup and view all the answers

    What is the main advantage of the Salaried Self Admin approach for MEPPs?

    <p>Tailored and personal service</p> Signup and view all the answers

    What is a possible disadvantage of a Multi-Employer Pension Plan (MEPP) for employers and plan members?

    <p>Complex recordkeeping due to tracking member services with multiple employers</p> Signup and view all the answers

    Which of the following criteria must be met for a registered plan to be considered a MEPP under the Income Tax Act (ITA)?

    <p>Diversified participation across multiple employers is ensured</p> Signup and view all the answers

    Why is an adverse plan amendment significant in the context of a Multi-Employer Pension Plan (MEPP)?

    <p>It requires advance notice to members about changes</p> Signup and view all the answers

    What differentiates the funding approach of provincial pension regulators towards Defined Benefit (DB) MEPPs?

    <p>They ensure long-term sustainability without considering immediate termination</p> Signup and view all the answers

    In what way do MEPPs relate to member termination of employment?

    <p>Portability provisions vary based on the number of employers involved</p> Signup and view all the answers

    What is a key feature that distinguishes a specified multi-employer pension plan (SMEPP) from other types of plans?

    <p>Trustees not controlled by participating employers</p> Signup and view all the answers

    How does the Income Tax Act (ITA) define a Multi-Employer Pension Plan (MEPP)?

    <p>A plan where multiple unrelated employers in the same industry contribute</p> Signup and view all the answers

    What is a potential issue surrounding fund ownership in Multi-Employer Pension Plans (MEPPs)?

    <p>Ownership not clearly defined in agreements</p> Signup and view all the answers

    What role does joint governance play in Multi-Employer Pension Plans (MEPPs)?

    <p>May affect decision-making due to shared governance</p> Signup and view all the answers

    Why might some jurisdictions not mandate funding for MEPP deficits?

    <p>To reduce the financial burden on participating employers</p> Signup and view all the answers

    How does membership eligibility in a Multiple Employer Pension Plan (MEPP) differ from a Single Employer Pension Plan (SEPP)?

    <p>Membership in MEPPs is based on hours worked or contributed, while SEPPs have fixed membership criteria.</p> Signup and view all the answers

    What is a unique contribution remittance requirement for Multiple Employer Pension Plans (MEPPs)?

    <p>Trustees are responsible for ensuring that employee contributions are made in cash only.</p> Signup and view all the answers

    How do general plan termination rules for Multiple Employer Pension Plans (MEPPs) differ from those of Single Employer Pension Plans (SEPPs)?

    <p>MEPPs may experience surplus distribution issues upon wind-up, which is uncommon in SEPPs.</p> Signup and view all the answers

    What is a special consideration under ITA rules specific to Single Employer Pension Plans (SEPPs) as compared to Multiple Employer Pension Plans (MEPPs)?

    <p>SEPP employee contributions are not subject to maximum limits as they are in MEPPs.</p> Signup and view all the answers

    What differentiates the administration of Multiple Employer Pension Plans (MEPPs) from Single Employer Pension Plans (SEPPs)?

    <p>MEPP Trustees are responsible for documentation upkeep, while SEPP trustees focus on database maintenance.</p> Signup and view all the answers

    What is a key operational difference between Multiple Employer Pension Plans (MEPPs) and Single Employer Pension Plans (SEPPs) regarding membership?

    <p>In MEPPs, workers with multiple employers within a year can be members, while SEPPs only allow single employer's employees.</p> Signup and view all the answers

    What unique duty related to Pension Plan Governance Guideline issued by CAPSA applies to Multiple Employer Pension Plans (MEPPs)?

    <p>Ensuring trustee education and training only applies to MEPP governance activities.</p> Signup and view all the answers

    MEPPs often allow membership for workers with only one employer within a year.

    <p>False</p> Signup and view all the answers

    The administration of a MEPP is usually handled by individual employers only.

    <p>False</p> Signup and view all the answers

    Contributions to a MEPP must be remitted to the union within 60 days after the due date.

    <p>False</p> Signup and view all the answers

    MEPPs are more likely to wind up due to employer withdrawal compared to SEPPs.

    <p>False</p> Signup and view all the answers

    SMEPPs are subject to maximum pension rules for pre-1992 service.

    <p>False</p> Signup and view all the answers

    ITA leave-of-absence limits apply in the same way to SMEPPs as to SEPPs.

    <p>False</p> Signup and view all the answers

    Employee contribution limits for SMEPPs are subject to the same ITA maximum limits as SEPPs.

    <p>False</p> Signup and view all the answers

    ITA rules limiting benefits for connected persons apply to SMEPPs.

    <p>False</p> Signup and view all the answers

    Certain limits on bridging benefits apply to MEPPs.

    <p>False</p> Signup and view all the answers

    Trustee education and training is not a high-level duty related to MEPP governance according to CAPSA guidelines.

    <p>False</p> Signup and view all the answers

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