Statutory Pension Benefits - these can consist of:

(a) Social security arrangements: benefits under the Old Age Security Program and the Pension Security Program provided and administered by the relevant Social Security Organizing Agency; and/or

(b) Statutory Termination Payment: statutory termination payment for termination of employment due to the employee reaching the applicable retirement age. This is DB in nature.

Voluntary Pension Benefits (Pension Plan) - some employers enroll their employees in what are essentially voluntary pension plans:

(a) Employer Pension Fund: provides pension benefits based on a DB structure or DC structure to its members.

(b) Financial Institution Pension Fund: only banks and life insurance companies can establish this type of fund and it has a DC offering only.

It is important to determine whether there is a separate voluntary pension plan in the relevant target or impacted company. This is required to determine whether there is any action that needs to be taken by the seller or buyer in respect of the pension plan (including in relation to benefits under the plan) in light of the transaction.