Changing pension plans can arise for a variety of reasons including sale of a business, mergers of businesses and establishing a new plan. These actions may trigger different sections of the Law and are different from changing pension plan providers from one multi-employer plan to another.
From time to time an employer may wish to change plan providers and they may have been delinquent in remitting their contributions to the former plan. They would be permitted to change, with the agreement of their employees (this agreement is necessary even if they are not in arrears); however there would be some extra onus put on the employer, the former provider, the new provider and the National Pensions Office.
- The former plan should prepare a report for the National Pensions Office which details the payments received from the employer and details the delinquent payments.
- The report should include the name of the new pension plan that the employer will be using and the effective date and should be copied to the new provider.
- The new provider must accept the responsibility for working with the employer and the national Pensions Office to ensure contributions are made current.
- With transfers such as this, employees must retain the option whether to transfer their accumulated contributions to the new provider or not. Delinquent contributions will be paid to the new provider.
Whenever an employer changes pension plans or providers, whether they are in a delinquent position or not, the employer and the new provider must ensure that the former provider and the National Pensions Office are notified and provided with an effective date. Employees must complete the new providers Member Enrollment Forma and, if they wish to transfer funds to the new provider, the Transfer Request which the former provider should ensure is completed within 45 days.
Last Updated: 2006-09-22