Update on Quebec Regulations

June 20, 2024

In May, we told you about upcoming changes to regulations under Quebec’s Supplemental Pension Plans Act. As part of our commitment to keep you informed, we’re letting you know the regulation to amend the Regulation respecting supplemental pension plans has now been published. The amendments will be in place no later than January 1, 2025.

Below we outline the main amendments to the Regulation, and the steps Sun Life will take for all Quebec Life Income Fund (LIF) and pension plans offering variable benefits.

Amendments to the Regulation respecting supplemental pension plans

The regulatory amendments are intended to offer greater flexibility in the use of retirement savings for those who are 55 years old or older. The changes allow plan members to withdraw larger amounts earlier in their retirement.

  • Removal of the maximum withdrawal limit for those who are 55 years old or older. There’s no change to the minimum withdrawal limit.
  • A maximum will still apply to plan members who are under 55 years old and will be calculated differently.
  • A new calculation of estimated life income must be disclosed on statements to plan members who are 55 years old or older.
  • The annual statement must also include:
    • Disclosure that the estimated life income amount is an estimate and could change because of withdrawals made and returns on the fund.
    • Assumptions for age of death and rate of return used in the calculation of estimated life income must be disclosed.

Plan member communication

  • We’ll send a communication to all Quebec LIF and variable benefits plan members who are 55 years old or older, informing them that by January 1, 2025, the maximum withdrawal limit no longer applies, and a new estimated life income calculation has been introduced.
    • This new calculation aims to inform plan members of reasonable withdrawal amounts when planning for lifetime income.
  • We’ll communicate to all Quebec LIF and variable benefits plan members who will be 55 years old in 2025, informing them that the maximum withdrawal limit no longer applies once they turn 55 years old.
  • Sun Life will update plan member statements to provide estimated life income for those who are 55 years old or older, and all required disclosures where applicable.
  • Calculations for the maximum withdrawal limit for Quebec LIF and variable benefits plan members under 55 years old, will also be updated by January 1, 2025.

Plan member support

  • A Sun Life licensed retirement consultant* will share the estimated life income as part of account opening discussions for plan members who are 55 years old and older.
  • The estimated life income will be recalculated when a plan member contributes any new assets to their account. 

To further help support plan members, you can encourage them to use our 360 Plan Advice service. With 360 Plan Advice they can get one-to-one support from a Sun Life licensed retirement consultant* about their financial roadmap or retirement planning needs. All related tools and resources will be updated to reflect the change to maximums.

*Registered as financial security advisors in Quebec.

Next steps

There is no action required by you at this time.

Questions? We’re here to help.

Please reach out to your Sun Life Group Retirement Services representative.