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QBS 15 Multi-employer plans, Applicable to TBPPs - Coggle Diagram
QBS 15
Multi-employer plans
Types of plans
Co-operative MEPP
1)
Created for economic efficiencies
2)
Similar to classic but no collective agreements
Public
1)
Established by statute
2)
FAP or CAP
Classic
1)
Trade unions
2)
Flat dollars - target benefit based on cot level
3)
Collective agreements
4)
ER cot fixed
5)
ER and Union on board of trustees
6)
Funding deficiencies require increased funding (subject to nego) or reduced benefits (can be retro
7)
portable
8)
EEs own surplus
Termination of a MEPP
1) ER withdrawal does not warrant a PWUP nor a WUP
2) regulators can declare a WUP or PWUP
SMEPP Criterias
1) 90% + ERs subject to Part I of ITA
2) ER cot fixed by collective agreement - independt of financial sit of plan and detemrined by reference to hours worked
FUNDING = MEPP relies on fixed cont
1)
cot need to fund current svc cost and deficits
2)
rate set by collective agreement
3)
fundamental duty of trustees is to collect contributions from ER
Governance and Structure
Board of trustees are fiduciaries
act solely to benefit trust and not self
impartial to all participants
seek expert opinion if necessary
Admin responsabilities
1)
Amdinister reciprocal agreement
2)
benefits/claims admin
3)
create modify rules rlating to trust/plan
4)
Maintain:
census and ER data
trust and plan documents
meeting minutes
5)
Funding
receive /verify deposit
updating member credits
pursue delinquent contributions
OSFI Guidelines
1)
Board composition /orientstion : board should be well educated
2)
Ensur einvest - acheiing obj aligned with policies/fid duties
3)
Obtain independent obj advice
4)
avoid intergenerational inequity
5)
Trust compensation should be approp and based on policy
6)
dont't allow ER participation if won't be able to collect data /cot
CAPSA on Roles and resp. on mgmt of MEPPs adresses
:
1)
Plan manager :: complete day to day admin
2)
agent//svc providers
: provide svc or advice to plan admin
3)
Pension board of Trustee
: plan admin monitor
staff and svc provider perform
funding/delinquent ERs
investments
Advantages for
EES
Adavantges
ER
1) Predicatble cost
2) economies of scales
3) admin fees
4) greater plan member interest
5) better ability to attract workers
1)
Reasonable pension expectations
2)
Portable benefits
3)
board representation
Taxation
1)
Generally comply woth ITA like SEPP
2)
DB MEPP PAs - same as SEPP except prorarte benefit earned and 600$ offset
3)
DC MEPP PAs - same as SEPP
4) SMEPP PA - like DC
5)
SMEPP PSPA and PARs and PAR are diff - PSPA for post 1989 improv is just EE cont, PARs are zero
Applicable to TBPPs