On October 7, 2020,
Bill 68, An Act mainly to allow the establishment of target
benefit pension plans (Bill 68), was tabled at
Quebec's National Assembly by the province's Minister of
Finance, Éric Girard.
Bill 68's main purpose is to provide a supplementary
retirement savings option for Quebec workers by paving the way for
the implementation of a new type of pension plan, namely a Target
Benefit Pension Plan (TBPP).
CHARACTERISTICS
TBPPs combine characteristics of defined benefit plans
with those of defined contribution plans. As is the case for
defined contribution plans, the employer contribution to a TBPP is
limited to the amount stipulated in the plan, while risks
associated with longevity and return on savings are borne by
workers and retirees. However, like defined benefit pension plans,
TBPPs offer their members benefits at a certain level that, as
opposed to the prevailing situation for defined benefit plans, may
be amended according to the plan's
