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ontario regulation 239/09

made under the

Pension Benefits Act

Made: June 17, 2009
Filed: June 19, 2009
Published on e-Laws: June 23, 2009
Printed in The Ontario Gazette: July 4, 2009

Amending Reg. 909 of R.R.O. 1990

(General)

1. (1) The definition of “locked-in retirement account” in subsection 1 (1) of Regulation 909 of the Revised Regulations of Ontario, 1990 is revoked and the following substituted:

“locked-in retirement account” means an RRSP that meets the requirements set out in Schedule 3; (“compte de retraite avec immobilisation des fonds”)

(2) Subsection 1 (2) of the Regulation is amended by adding the following definition:

“actuarial cost certificate” means an actuarial cost certificate that satisfies the requirements of section 7.1; (“certificat actuariel”)

2. Subsection 4 (2) of the Regulation is amended by striking out “and” at the end of clause (c) and by adding the following clause:

(c.1) all special payments determined in accordance with section 5.6; and

3. Subsection 5 (16) of the Regulation is revoked and the following substituted:

(16) Subject to subsections (13), (14), (15), (16.1) and 5.1 (5), the prior year credit balance to be used in any report or actuarial cost certificate required under this Regulation in respect of a plan is the amount calculated using the formula,

A + B – C

in which,

  “A” is the prior year credit balance stated in the last report or actuarial cost certificate filed or submitted in respect of the plan under this Regulation,

  “B” is the total amount of contributions made to the plan by an employer or by a person or entity required to make contributions under the plan on behalf of an employer,

(a) after the valuation date of the last report or actuarial cost certificate filed or submitted in respect of the plan under this Regulation, and

(b) before the valuation date for the report or actuarial cost certificate being prepared, and

  “C” is the total amount of contributions that, under section 4, would be required to have been made during the period described in the definition of “B” by an employer or by a person or entity required to make contributions under the plan on behalf of an employer if the contributions had been calculated without reference to any prior year credit balance.

4. The Regulation is amended by adding the following sections:

Solvency Funding Relief

5.6 (1) In this section and section 5.7,

“certificate of consent” means a certificate filed with the Superintendent by the administrator of a plan that is not a jointly governed plan,

(a) that specifies,

(i) the total number of persons who were eligible members or eligible former members on the valuation date of the plan’s solvency relief report and on the day the information statement under subsection 5.7 (2) was sent by the administrator, and

(ii) the number of persons described in subclause (i) who either submitted notices of objection to the election of Option 3 by the administrator or were represented by a collective bargaining agent that submitted a notice of objection on their behalf, and

(b) that confirms that the number of objections to the election that were received by the administrator represents objections from not more than one-third of the total number of persons described in subclause (a) (i); (“certificat de consentement”)

“consolidated prior solvency deficiency” means, in respect of a plan, the present value as of the valuation date of the solvency relief report of all special payments, other than payments required only by reason of section 75 of the Act,

(a) that are required with respect to any solvency deficiency determined in a report under section 3, 13 or 14 that was filed before the solvency relief report is filed, and

(b) that are scheduled to be paid after the valuation date of the solvency relief report; (“déficit de solvabilité antérieur consolidé”)

“eligible former member” means, with respect to a plan, a former member whose pension or pension benefit includes a defined benefit, other than,

(a) a former member who no longer has an entitlement to any payments from the plan, and

(b) a former member for whom a notice of death has been received by the administrator; (“ancien participant admissible”)

“eligible member” means, with respect to a plan, a member whose pension benefit includes a defined benefit, other than,

(a) a member who no longer has an entitlement to any payments from the plan, and

(b) a member for whom a notice of death has been received by the administrator; (“participant admissible”)

“excluded plan” means,

(a) a plan that does not provide defined benefits,

(b) a plan that is not registered before September 30, 2008 under the Act or the legislation of a province or territory designated under section 23 unless,

(i) the plan is deemed under section 80 of the Act to be a continuation of another plan that was registered before that day,

(ii) the plan is a successor plan described in section 81 of the Act and the original plan was registered before that day, or

(iii) the plan was formed by the merger of two or more plans and at least one of the original plans was registered before that day,

(c) a multi-employer pension plan that is a specified Ontario multi-employer pension plan under section 6.0.1,

(d) a plan that is a participating pension plan under Ontario Regulation 99/06 (Stelco Inc. Pension Plans) made under the Act,

(e) a qualifying plan, or

(f) a plan to which not all of the contributions set out in reports filed under section 3, 13 or 14 that were required to be made before the valuation date of the plan’s solvency relief report have been made in accordance with the Act and the regulations; (“régime exclu”)

“jointly governed plan” means a plan other than an excluded plan that is,

(a) a jointly sponsored pension plan,

(b) a multi-employer pension plan established pursuant to a collective agreement or a trust agreement,

(c) a plan whose administrator is a pension committee all of whose members are representatives of members of the plan, or

(d) a plan whose administrator is a pension committee described in clause 8 (1) (b) of the Act if at least one-half of the members of the pension committee represent members of the plan or persons receiving pensions under the plan; (“régime à gestion paritaire”)

“new going concern unfunded liability” means, with respect to a plan, a going concern unfunded liability determined in the plan’s solvency relief report; (“nouveau passif à long terme non capitalisé”)

“new solvency deficiency” means, with respect to a plan, a solvency deficiency determined in the plan’s solvency relief report; (“nouveau déficit de solvabilité”)

“Option 1” means the type of solvency relief described in paragraph 1 of subsection (3); (“option 1”)

“Option 2” means the type of solvency relief described in paragraph 2 of subsection (3); (“option 2”)

“Option 3” means the type of solvency relief described in paragraph 3 of subsection (3); (“option 3”)

“solvency relief report” means, with respect to a plan, the first report filed by the administrator under section 13 or 14 for which the valuation date is on or after September 30, 2008 and before September 30, 2011. (“rapport sur l’allègement de la capitalisation du déficit de solvabilité”)

(2) This section applies despite any other provision of this Regulation.

(3) The administrator of a plan that is not an excluded plan, may, subject to this section, elect to use one or more of the following types of solvency relief:

1. If there is a new going concern unfunded liability or a new solvency deficiency, the deferral for up to 12 months of the start of the period during which special payments are required to be made to liquidate them.

2. If a solvency deficiency was determined in a report filed under section 3, 13 or 14 before the solvency relief report is filed and has not been liquidated, the establishment of a new five-year period during which the plan’s consolidated prior solvency deficiency is to be liquidated.

3. If there is a new solvency deficiency, the extension of the five-year period during which the new solvency deficiency would otherwise be required to be liquidated for up to an additional five years.

(4) The following exceptions apply for the purposes of this section:

1. The administrator of a jointly sponsored pension plan may not elect Option 1.

2. The administrator of a plan that is one of the new pension plans for the purposes of Ontario Regulation 202/02 (Algoma Steel Inc. Pension Plans) made under the Act, may not elect Option 2.

3. The administrator of a plan that is not a jointly governed plan may not elect Option 3,

i. if the administrator does not comply with section 5.7,

ii. if the administrator receives notices of objection representing objections to the election from more than one-third of the persons who are eligible members or eligible former members described in section 5.7, or

iii. if the administrator fails to file with the Superintendent, not more than 60 days after filing the solvency relief report, a certificate of consent.

(5) An election under this section must be in writing, may be made only once, cannot be rescinded and must be filed with the Superintendent no later than the day on which the solvency relief report is filed with the Superintendent.

(6) If the administrator of a plan makes an election under this section, the following rules apply in the circumstances described in the following paragraphs:

1. If there was a new solvency deficiency or the administrator elected Option 2 and, on a valuation date after the valuation date of the solvency relief report, the sum of the solvency assets and the solvency asset adjustment exceeds the sum of the solvency liabilities, the solvency liability adjustment and the prior year credit balance (such excess being referred to in this paragraph as the “solvency excess”), the special payments or amortization periods under subsection 5 (1) with respect to the new solvency deficiency or the special payments required to be made in respect of the consolidated prior solvency deficiency may be adjusted in accordance with the following rules:

i. If the solvency excess is greater than or equal to the present value of the special payments under subsection 5 (1) with respect to the new solvency deficiency and the consolidated prior solvency deficiency, the special payments are reduced to zero.

ii. If the solvency excess is less than the present value of the special payments referred to in subparagraph i, the solvency excess may be applied to reduce any of the following in order to reduce the solvency excess to zero:

A. The special payments with respect to the new solvency deficiency over the amortization period set out in the solvency relief report.

B. The special payments with respect to the consolidated prior solvency deficiency over the amortization period set out in the solvency relief report.

C. The amortization period for the special payments with respect to the new solvency deficiency.

D. The amortization period for the special payments with respect to the consolidated prior solvency deficiency.

2. If the administrator elects Option 1 and there is a new going concern unfunded liability, the beginning of the 15-year amortization period under subsection 5 (1) for the new going concern unfunded liability may be deferred to a day that is not later than 12 months after the valuation date.

3. If the administrator elects Option 1 and there is a new solvency deficiency,

i. the beginning of the five-year amortization period under subsection 5 (1) for the new solvency deficiency may be deferred to a day that is not later than 12 months after the valuation date, and

ii. the solvency asset adjustment under clause 1.2 (1) (d) for the new solvency deficiency must include the present value of all special payments required to be made in respect of any going concern unfunded liability that are scheduled for payment within the period that begins on the valuation date of the solvency relief report and ends at the end of the five-year amortization period chosen by the administrator in accordance with subparagraph i.

4. The period during which special payments are deferred when Option 1 is elected is deemed for the purposes of subsections 7 (3) and (4) to still be a period for which special payments are required to be made under section 5.

5. If the plan is not a jointly sponsored pension plan and the administrator elects Option 2,

i. the consolidated prior solvency deficiency must be liquidated, with interest at the rates described in subsection 5 (2), by equal monthly instalments over a period of five years beginning on the valuation date of the solvency relief report, instead of over the remaining portion of the amortization period or periods that would otherwise apply,

ii. the monthly instalments required to liquidate the consolidated prior solvency deficiency are deemed to be special payments under subsection 5 (1) for the purposes of liquidating a solvency deficiency,

iii. the solvency asset adjustment under clause 1.2 (1) (d) for a new solvency deficiency must include the present value of all special payments required to liquidate the consolidated prior solvency deficiency, and

iv. the amount by which “A” exceeds “B” may be applied to reduce the amount of any contributions to be made in accordance with the solvency relief report until the next report under section 3, 13 or 14 is filed and, for the purposes of subsection 37 (12), is deemed not to be an excess special payment, where,

“A” is the amount of the special payments in respect of any solvency deficiency determined in a report filed previously under section 3, 13 or 14 that are made between the valuation date of the solvency relief report and the day the solvency relief report is filed, and

“B” is the amount of the special payments required to be made in respect of the consolidated prior solvency deficiency between the valuation date of the solvency relief report and the day the solvency relief report is filed.

6. Subject to paragraph 7, if the plan is not a jointly sponsored pension plan, if the administrator elects Option 2 or 3 or both options and if, after the later of the day on which the solvency report is required to be filed and any certificate of consent is required to be filed in respect of the election, the administrator files an amendment to the plan to increase pension benefits or ancillary benefits, any increase in the going concern unfunded liability that results from the amendment must be liquidated, with interest at the going concern valuation interest rate or rates, by special payments determined under section 5 over a period of five years, beginning on the valuation date of the report under section 3 or 14 in which the increase in the going concern unfunded liability is determined.

7. Paragraph 6 does not apply with respect to an increase in a going concern unfunded liability that results from an amendment or a part of an amendment that does not take effect until after the later of,

i. the day on which the consolidated prior solvency deficiency is liquidated, if the administrator elected Option 2 or both Options 2 and 3, and

ii. the day on which the remaining period during which the new solvency deficiency must be liquidated is equal to five years, if the administrator elected Option 3 or both Options 2 and 3.

8. If the plan is not a jointly sponsored pension plan and the administrator elects Option 3,

i. the period in which the new solvency deficiency must be liquidated begins on the valuation date of the solvency relief report and ends on a day not more than 10 years after that day, and

ii. the solvency asset adjustment under clause 1.2 (1) (d) for the new solvency deficiency must include the present value of all special payments required to be made in respect of any going concern unfunded liability that are scheduled for payment during the period starting on the valuation date of the solvency relief report and ending on the same day the period referred to in subparagraph i ends.

9. If the plan is not a jointly sponsored pension plan and the administrator elects both Options 1 and 3,

i. the period in which the new solvency deficiency must be liquidated begins on a day not more than 12 months after the valuation date of the solvency relief report and ends not more than 10 years after that day, and

ii. the solvency asset adjustment under clause 1.2 (1) (d) for the new solvency deficiency must include the present value of all special payments required to be made in respect of any going concern unfunded liability that are scheduled for payment during the period starting on the valuation date of the solvency relief report and ending on the same day the period referred to in subparagraph i ends.

10. If the plan is a jointly sponsored pension plan and the administrator elects Option 3,

i. the period in which the new solvency deficiency must be liquidated begins on a day not later than 12 months after the valuation date of the solvency relief report and ends not more than 10 years after that day, and

ii. the solvency asset adjustment under clause 1.2 (1) (d) for the new solvency deficiency must include the present value of all special payments required to be made in respect of any going concern unfunded liability that are scheduled for payment during the period starting on the valuation date of the solvency relief report and ending on the same day the period referred to in subparagraph i ends.

11. Subject to paragraph 12, if the plan is a jointly sponsored pension plan, if the administrator elects Option 3 and if, after the day the solvency relief report is required to be filed, the administrator files an amendment to the plan to increase pension benefits or ancillary benefits, any increase in the going concern unfunded liability that results from the amendment must be liquidated, with interest at the going concern valuation interest rate or rates, by special payments determined under section 5 over a period of five years, beginning not later than 12 months after the valuation date of the report under section 3 or 14 in which the increase in the going concern unfunded liability is determined.

12. Paragraph 11 does not apply with respect to an increase in a going concern unfunded liability that results from an amendment or part of an amendment that does not take effect until after the day on which the remaining period during which the new solvency deficiency must be liquidated is equal to five years.

(7) An administrator who makes an election must send a notice containing the following information, not more than 60 days after the first day a special payment is required to be made in respect of the new solvency deficiency, the new going concern unfunded liability or the consolidated prior solvency deficiency, as applicable, to every person who is an eligible member or an eligible former member on the day the notice is sent and to every collective bargaining agent that represents eligible members on that day:

1. The name and provincial registration number of the plan.

2. The name of and the contact information for the administrator.

3. The valuation date of the solvency relief report.

4. A description of the option or options elected.

5. The transfer ratio of the plan as of the valuation date.

6. The estimated annual contributions that would have been required to fund the normal cost of the plan and all special payments if no election had been made and the estimated annual contributions that are required after the election.

7. An explanation of how the security of the pension benefits and ancillary benefits for eligible members and eligible former members might be affected as a result of the election.

8. If the administrator has elected Option 3 and the plan is not a jointly governed plan,

i. confirmation that the collective bargaining agent, if any, objected or chose not to object on behalf of eligible members represented by the collective bargaining agent on the valuation date of the solvency relief report, and

ii. confirmation that any objections to the election received by the administrator represented objections to the election from not more than one-third of the eligible members and eligible former members.

(8) If an administrator of a plan elects Option 3, the administrator shall send a progress report containing the following information, not more than six months after the end of each fiscal year of the plan in which a report under section 3 or 14 is filed until the new solvency deficiency has been liquidated, to every person who is an eligible member or eligible former member on the day the progress report is sent and to every collective bargaining agent that represents eligible members on that day:

1. The name and provincial registration number of the plan.

2. The name of and the contact information for the administrator.

3. The valuation date of the solvency relief report and of the most recently filed report under section 3 or 14.

4. A description of the option or options elected.

5. The transfer ratio of the plan as of the valuation date of the solvency relief report.

6. The transfer ratio of the plan as of the valuation date of the most recently filed report under section 3 or 14 in which the transfer ratio was determined.

7. The estimated annual contributions required to fund the normal cost of the plan and all special payments set out in the report referred to in paragraph 6.

8. An explanation of how the security of the pension benefits and ancillary benefits for eligible members and eligible former members might be affected as a result of the election.

(9) A progress report required under subsection (8) may be included in the written statement for the same fiscal year that is required to be sent to members under section 27 of the Act.

5.7 (1) This section applies if an administrator elects or proposes to elect Option 3 under section 5.6 in respect of a plan that is not a jointly governed plan.

(2) The administrator shall,

(a) send an information statement and a notice of objection form to every person,

(i) who is,

(A) an eligible member on the valuation date of the solvency relief report, and

(B) an eligible member or eligible former member on the day the information statement and notice of objection form are sent, and

(ii) who is not represented by a collective bargaining agent on the valuation date of the solvency relief report;

(b) send an information statement and a notice of objection form to every person who is an eligible former member on the valuation date of the solvency relief report and on the day the information statement and notice of objection form are sent;

(c) send an information statement to every person,

(i) who is,

(A) an eligible member on the valuation date of the solvency relief report, and

(B) an eligible member or eligible former member on the day the information statement is sent, and

(ii) who is represented by a collective bargaining agent on the valuation date of the solvency relief report;

(d) send an information statement and a notice of objection form to each collective bargaining agent that represented eligible members on the valuation date of the solvency relief report; and

(e) provide to the Superintendent a copy of the information statement and the notice of objection form at the time the administrator sends the statements and forms in accordance with clauses (a), (b), (c) or (d) and advise the Superintendent of when the last notice of objection form was sent.

(3) An information statement sent to a person who is an eligible member or eligible former member must be sent to the person’s last known address and inform the recipient of the following:

1. The name and provincial registration number of the plan.

2. The name and status of the recipient as an eligible member or eligible former member on the valuation date of the solvency relief report.

3. The name of and the contact information for the administrator.

4. If the recipient is an eligible member on the valuation date of the solvency relief report, whether he or she was represented by a collective bargaining agent on that day.

5. That the administrator of the plan is seeking the consent of eligible members and eligible former members to extend the period of time during which the new solvency deficiency must be liquidated from five years to a period not exceeding 10 years.

6. The amount of the solvency deficiency for which the amortization period would be extended.

7. The transfer ratio of the plan as of the valuation date.

8. The estimated annual contributions that would be required to fund the normal cost of the plan and all special payments if the five-year period is not extended and the estimated annual contributions if the payment period is extended.

9. An explanation of how the security of the pension benefits and ancillary benefits for eligible members and eligible former members might be affected as a result of the election.

10. If the recipient was an eligible member on the valuation date of the solvency relief report and was represented by a collective bargaining agent on that day, a statement that the collective bargaining agent will consent or object to the extension on behalf of the eligible members represented by the collective bargaining agent on that day.

11. If the recipient was an eligible member on the valuation date of the solvency relief report and was not represented by a collective bargaining agent on that day, or was an eligible former member on that day,

i. that the person may object to the extension by completing and submitting a notice of objection, in the form provided, and

ii. the last day on which the administrator will accept receipt of notices of objection.

12. That if the number of notices of objection received by the administrator confirms that not more than one-third of the persons who were eligible members or eligible former members on the valuation date of the solvency relief report, and when the information statement was sent, object to the extension, the extension of the five-year period will proceed.

(4) An information statement sent to a collective bargaining agent must contain:

1. The information listed in paragraphs 1, 3, 5, 6, 7, 8, 9 and 12 of subsection (3).

2. A statement that the collective bargaining agent may object to the extension on behalf of the persons who are currently eligible members or eligible former members, were eligible members on the valuation date of the solvency relief report and were represented by the collective bargaining agent on that day, by submitting a notice of objection in the form provided.

3. The number of persons who,

i. were eligible members on the valuation date of the solvency relief report and represented by the collective bargaining agent on the valuation date, and

ii. were still eligible members or were eligible former members when the administrator sent the information statement to them.

4. The last day on which the administrator will accept receipt of notices of objection.

(5) A notice of objection must include the following:

1. The name and provincial registration number of the plan.

2. The name of the administrator.

3. The address to which the notice of objection form is to be sent.

4. If the notice of objection is for use by a collective bargaining agent, the number of persons represented by the collective bargaining agent in submitting the objection who were eligible members on the valuation date of the solvency relief report and were either eligible members or eligible former members when the information statement was sent to them by the administrator.

5. A statement objecting to the extension of the five-year period during which the new solvency deficiency must be liquidated to a period not exceeding 10 years.

6. The date not earlier than 45 days after the information statement is mailed by the administrator that is the final day the administrator will accept receipt of notices of objection.

(6) Nothing related to the notice of objection or the process for objecting shall enable the administrator to identify an eligible member or eligible former member who submits a notice of objection.

(7) The administrator shall retain all notices of objection it receives until the new solvency deficiency is liquidated and shall provide copies of the notices to the Superintendent upon request.

5. Section 7 of the Regulation is amended by adding the following subsections:

(3.1) Subsection (3) does not apply to plans that provide defined benefits, other than designated plans, for a fiscal year of the plan ending after June 29, 2010 and before January 1, 2013 to reduce contributions for the normal cost required to be made by an employer, by a person or entity required to make contributions on behalf of the employer, by members or by any of them for the year unless,

(a) the administrator files with the Superintendent within the first 90 days of the fiscal year an actuarial cost certificate for the fiscal year; and

(b) the amount applied to reduce the contributions for the year does not exceed the maximum amount determined under subsection (3.2).

(3.2) For the purposes of clause (3.1) (b), the maximum amount of any actuarial gain identified in the last report filed under section 3 or 14 that may be applied to reduce contributions for the normal cost for a fiscal year of the plan ending after June 29, 2010 and before January 1, 2013 is the lesser of,

(a) the amount, if any, by which the going concern assets reported in the actuarial cost certificate filed for the fiscal year exceed the sum of the estimated going concern liabilities and the prior year credit balance as reported in the certificate; and

(b) the amount, if any, by which the solvency assets reported in the certificate exceed the sum of the estimated solvency liabilities and the prior year credit balance as reported in the certificate.

6. The Regulation is amended by adding the following section:

7.1 (1) An actuarial cost certificate must be prepared by an actuary using methods and actuarial assumptions that are consistent with accepted actuarial practice and with the requirements of the Act and this Regulation, based on a valuation date of the first day of the fiscal year of the plan to which the certificate relates.

(2) An actuarial cost certificate must contain the following:

1. An estimate of the normal cost of the plan for the fiscal year of the plan commencing on the valuation date of the certificate.

2. An estimate of the total employee contributions to the plan to be made during that fiscal year.

3. The going concern assets, estimated going concern liabilities, solvency assets and estimated solvency liabilities, each determined as of the valuation date of the certificate.

4. The prior year credit balance.

5. The estimated transfer ratio, calculated using the solvency assets and estimated solvency liabilities determined in the certificate.

7. Section 14 of the Regulation is amended by adding the following subsection:

(11) Despite subsection (10), the administrator may file the first report for which the valuation date is on or after September 30, 2008 and before November 1, 2008 up to 10 months after the valuation date.

8. Section 16 of the Regulation is amended by adding the following subsection:

(5) A person preparing a report under section 3, 13 or 14 that has a valuation date after December 11, 2008 and before April 1, 2009 may calculate the solvency liability for a member, who is assumed to exercise his or her entitlement under subsection 73 (2) of the Act on the wind-up of the plan, using methods and assumptions consistent with section 3800 of the Canadian Institute of Actuaries Standards of Practice, effective April 1, 2009, which is available to the public from the Canadian Institute of Actuaries at Suite 800, 150 Metcalfe Street, Ottawa, Ontario K2P 1P1 or electronically on its website.

9. (1) Subsection 19 (5) of the Regulation is revoked and the following substituted:

(5) If the transfer ratio of a plan is less than one and the administrator of the plan knows or ought to know that, since the valuation date of the report most recently filed or submitted in respect of the plan under section 3, 4, 13 or 14, events have taken place that may result in the reduction of the transfer ratio by 10 per cent or more of the most recently determined transfer ratio, the administrator shall not undertake a transfer of any part of the commuted value without the prior approval of the Superintendent under subsection 42 (8) of the Act.

(2) Subsection 19 (6) of the Regulation is amended by adding “Subject to subsections (4) and (5)” at the beginning.

10. (1) Subsection 21 (1.2) of the Regulation is amended by striking out “a locked-in retirement income fund”. 

(2) Subsection 21 (1.3) of the Regulation is amended by striking out “a locked-in retirement income fund”. 

(3) Subsections 21 (2), (2.1), (2.2), (2.3), (2.4), (2.5), (2.6), (2.7), (2.8), (3) and (4) of the Regulation are revoked. 

11. (1) Clause 22 (1) (c) of the Regulation is amended by striking out “or a locked-in retirement income fund”.

(2) Subclause 22 (1) (f) (ii) of the Regulation is revoked and the following substituted:

(ii) in the case of a contract that is purchased with funds from a life income fund, a locked-in retirement income fund or a locked-in retirement account, the purchase is in accordance with Schedule 1, 1.1, 2 or 3 to this Regulation; and

(3) Clause 22 (1) (g) of the Regulation is revoked and the following substituted:

(g) on the death of the annuitant before payment of the annuity, the annuity shall be administered in accordance with section 48 of the Act. 

(4) Subsection 22 (2) of the Regulation is revoked and the following substituted:

(2) The insurance contract must provide that, if a life income fund is being purchased as authorized by clause (1) (c), the financial institution disclose to the annuitant the difference between the commuted value of the annuity and the amount that will be transferred to the life income fund. 

12. Section 22.1 of the Regulation is revoked.

13. Subsection 22.2 (2) of the Regulation is amended by striking out “a locked-in retirement income fund”.

14. Sections 22.3, 22.4 and 22.5 of the Regulation are revoked.

15. (1) Subsection 2 (4) of Schedule 1 to the Regulation is amended by adding at the end “subject to the maximum set out in subsection 66 (4) of the Act”.

(2) Section 2 of Schedule 1 to the Regulation is amended by adding the following subsection:

(6) It must indicate whether the commuted value of the pension benefit that was transferred into the fund was determined in a manner that differentiated on the basis of sex.

16. Section 3 of Schedule 1 to the Regulation is amended by adding the following subsection:

(3) Any transaction that contravenes subsection (1) is void. 

17. (1) Subsection 6 (1) of Schedule 1 to the Regulation is revoked and the following substituted:

(1) The amount of income paid during a fiscal year out of a life income fund that is governed by this Schedule must not exceed the greater of “A” and “B” where,

  “A” is the amount of the investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year, and

  “B” is the amount calculated using the formula,

C/F

in which,

“C” is the value of the assets in the fund at the beginning of the fiscal year, and

“F” is the present value, at the beginning of the fiscal year, of an annuity of $1 payable annually in advance over the period commencing at the beginning of the fiscal year and ending on December 31 of the year in which the owner reaches 90 years of age.

(2) Subsection 6 (2) of Schedule 1 to the Regulation is amended by striking out “subsection (1)” in the portion before paragraph 1 and substituting “the definition of “B” in subsection (1)”.

(3) Subsections 6 (3), (4), (5), (6) and (7) of Schedule 1 to the Regulation are revoked and the following substituted:

(3) The amount of income paid out of the fund during a fiscal year must not be less than the minimum amount prescribed for an RRIF under the Income Tax Act (Canada).

(4) If the minimum amount specified by subsection (3) is greater than the maximum amount determined under subsection (1), the minimum amount must be paid out of the fund during the fiscal year. 

(5) This section shall not be construed to prevent or limit a payment from the fund that is permitted under section 3, 8, 9, 9.1 or 10 of this Schedule or under section 22.2 of this Regulation.

18. (1) Clauses 7 (1) (d), (e) and (f) of Schedule 1 to the Regulation are revoked.

(2) Section 7 of Schedule 1 to the Regulation is amended by adding the following subsections:

(1.3) A life annuity referred to in clause (1) (c) shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the fund was determined in a manner that did not differentiate on the basis of sex.

(1.4) The financial institution shall not make a transfer described in subsection (1) except where,

(a) the transfer is permitted under the Act and this Regulation; and

(b) the transferee agrees to administer the amount transferred in accordance with the Act and this Regulation. 

(1.5) The financial institution shall advise the transferee in writing that the amount transferred must be administered in accordance with the Act and this Regulation.

19. Schedule 1 to the Regulation is amended by adding the following section after the heading “Withdrawals from the Fund”:

8. (1) On or after January 1, 2011, the owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 50 per cent of the total market value of the assets of the fund.

(2) For the purposes of subsection (1), the total market value of the assets of the fund is determined using the most recent statement about the fund given to the owner.  The statement must be dated within one year before the owner signs the application. 

(3) For the purposes of subsection (1), the owner of a fund may make a maximum of one withdrawal or transfer from the fund.

(4) Despite subsection (1), no amount may be withdrawn or transferred under this section unless an application for the withdrawal or transfer is given to the financial institution that administers the fund on or before April 30, 2012.

(5) The application must be made on a form approved by the Superintendent.

(6) The application form must be signed by the owner and accompanied by one of the following documents:

1. A declaration described in section 11 about a spouse.

2. A statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(7) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(8) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

20. The French version of paragraph 2 of subsection 9 (6) of Schedule 1 to the Regulation is amended by striking out “compte” and substituting “fonds”. 

21. Section 11 of Schedule 1 to the Regulation is amended by striking out “section 9, 9.1 or 10” in the portion before paragraph 1 and substituting “section 8, 9, 9.1 or 10”. 

22. Subsection 12 (1) of Schedule 1 to the Regulation is amended by striking out “section 9, 9.1 or 10” and substituting “section 8, 9, 9.1 or 10”. 

23. Subsection 12 (2) of Schedule 1 to the Regulation is amended by striking out “section 9, 9.1 or 10” and substituting “section 8, 9, 9.1 or 10”. 

24. Subsection 14 (5) of Schedule 1 to the Regulation is revoked and the following substituted:

(5) Notices under this section must be in writing and must be sent to the owner’s address as set out in the records of the financial institution.

25. (1) Paragraph 1 of subsection 15 (2) of Schedule 1 to the Regulation is revoked and the following substituted:

1. With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings, including any unrealized capital gains or losses, the payments made out of the fund, the withdrawals taken out of the fund and the fees charged against the fund. 

(2) Section 15 of Schedule 1 to the Regulation is amended by adding the following subsection:

(5) The following information must be provided to the owner on or before September 30, 2010:

1.   That, on or after January 1, 2011, the owner of the fund may, upon application in accordance with section 8 of this Schedule, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 50 per cent of the total market value of the assets of the fund, as determined using the most recent statement about the fund given to the owner.  The statement must be dated within one year before the owner signs the application. 

2. That the owner of the fund may make a maximum of one withdrawal or transfer under section 8 of this Schedule from the fund. 

3. That no withdrawal or transfer may be made under section 8 of this Schedule unless an application for the withdrawal or transfer is given to the financial institution on or before April 30, 2012.

4. That, on or after January 1, 2011, the amount of income paid out of the fund during a fiscal year must not exceed the greater of “A” and “B” where,

“A” is the amount of the investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year, and

“B” is the amount calculated using the formula set out in subsection 6 (1) of this Schedule.

5. That the owner may not transfer assets from the fund to a locked-in retirement account after December 31, 2010.

6. That after December 31, 2010, if assets are transferred from the fund to a life income fund that is governed by Schedule 1.1, the owner cannot make a withdrawal or transfer described in subsection 8 (1) of Schedule 1.1. 

26. (1) Subsection 2 (4) of Schedule 1.1 to the Regulation is amended by adding at the end “subject to the maximum set out in subsection 66 (4) of the Act”.

(2) Section 2 of Schedule 1.1 to the Regulation is amended by adding the following subsection:

(6) It must indicate whether the commuted value of the pension benefit that was transferred into the fund was determined in a manner that differentiated on the basis of sex.

27. Section 3 of Schedule 1.1 to the Regulation is amended by adding the following subsection:

(3) Any transaction that contravenes subsection (1) is void. 

28. Section 7 of Schedule 1.1 to the Regulation is amended by adding the following subsections: 

(6) A life annuity referred to in subsection (1) shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the fund was determined in a manner that did not differentiate on the basis of sex.

(7) The financial institution shall not make a transfer described in subsection (1) except where,

(a) the transfer is permitted under the Act and this Regulation; and

(b) the transferee agrees to administer the amount transferred in accordance with the Act and this Regulation. 

(8) The financial institution shall advise the transferee in writing that the amount transferred must be administered in accordance with the Act and this Regulation. 

29. (1) Subsection 8 (2) of Schedule 1.1 to the Regulation is amended by adding at the end “in relation to a transfer of assets made on or before December 31, 2009”. 

(2) Section 8 of Schedule 1.1 to the Regulation is amended by adding the following subsection:

(2.1) The owner of the receiving fund may, upon application in accordance with this section, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 50 per cent of the total market value of the assets transferred into the fund in relation to a transfer of assets made on or after January 1, 2010. 

(3) Subsection 8 (3) of Schedule 1.1 to the Regulation is revoked and the following substituted:

(3) Despite subsections (2) and (2.1), if the assets are transferred into the receiving fund from another life income fund that is governed by this Schedule, the owner cannot make a withdrawal or transfer described in subsection (2) or (2.1) unless the transfer of assets into the receiving fund was made in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

(4) Subsection 8 (3) of Schedule 1.1 to the Regulation, as remade by subsection (3), is revoked and the following substituted:

(3) Despite subsections (2) and (2.1), if the assets are transferred into the receiving fund from a life income fund or a locked-in retirement income fund, the owner cannot make a withdrawal or transfer described in subsection (2) or (2.1) unless the transfer of assets into the receiving fund was made in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

(5) Subsection 8 (4) of Schedule 1.1 to the Regulation is amended by striking out “described in subsection (2)” and substituting “described in subsection (2) or (2.1)”. 

(6) The French version of paragraph 2 of subsection 8 (8) of Schedule 1.1 to the Regulation is amended by striking out “compte” and substituting “fonds”. 

(7) Subsection 8 (8) of Schedule 1.1 to the Regulation is amended by adding the following paragraph:

2.1 The total market value of the assets transferred into the fund is to be determined as of the date the assets were transferred into the fund.

30. Schedule 1.1 to the Regulation is amended by adding the following section:

8.1 (1) On or after January 1, 2010, the owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 25 per cent of the total market value of all assets transferred into the fund on or before December 31, 2009.

(2) For the purposes of subsection (1), the owner of a fund may make a maximum of one withdrawal or transfer from the fund.

(3) An application for the withdrawal or transfer must be given to the financial institution that administers the fund on or before December 31, 2010.

(4) The application must be made on a form approved by the Superintendent.

(5) The application form must be signed by the owner and accompanied by one of the following documents:

1. A declaration described in section 12 about a spouse.

2. A statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 

(6) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(7) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The total market value of any assets transferred into the fund is to be determined as of the date the assets were transferred into the fund.

4. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

31. The French version of paragraph 2 of subsection 9 (6) of Schedule 1.1 to the Regulation is amended by striking out “compte” and substituting “fonds”.

32. Subsection 16 (5) of Schedule 1.1 to the Regulation is revoked and the following substituted:

(5) Notices under this section must be in writing and must be sent to the owner’s address as set out in the records of the financial institution.

33. (1) Paragraph 1 of subsection 17 (2) of Schedule 1.1 to the Regulation is revoked and the following substituted:

1. With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings, including any unrealized capital gains or losses, the payments made out of the fund, the withdrawals taken out of the fund and the fees charged against the fund. 

(2) Section 17 of Schedule 1.1 to the Regulation is amended by adding the following subsection:

(5) The following information must be provided to the owner on or before January 1, 2010:

1. That, on or after January 1, 2010, the owner of the fund may, upon application in accordance with section 8.1 of this Schedule, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 25 per cent of the total market value of all assets transferred into the fund on or before December 31, 2009.

2. That the owner of the fund may make a maximum of one withdrawal or transfer under section 8.1 of this Schedule from the fund. 

3. That no withdrawal or transfer may be made under section 8.1 of this Schedule unless an application for the withdrawal or transfer is given to the financial institution on or before December 31, 2010.

34. (1) Subsection 2 (4) of Schedule 2 to the Regulation is amended by adding at the end “subject to the maximum set out in subsection 66 (4) of the Act”.

(2) Section 2 of Schedule 2 to the Regulation is amended by adding the following subsection:

(6) It must indicate whether the commuted value of the pension benefit that was transferred into the fund was determined in a manner that differentiated on the basis of sex.

35. Section 3 of Schedule 2 to the Regulation is amended by adding the following subsection:

(3) Any transaction that contravenes subsection (1) is void. 

36. Section 6 of Schedule 2 to the Regulation is revoked and the following substituted:

6. (1) The amount of income paid during a fiscal year out of a locked-in retirement income fund that is governed by this Schedule must not exceed the greater of “A” and “B” where,

  “A” is the amount of the investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year, and

  “B” is the amount calculated using the formula,

C/F

in which,

“C” is the value of the assets in the fund at the beginning of the fiscal year, and

“F” is the present value, at the beginning of the fiscal year, of an annuity of $1 payable annually in advance over the period commencing at the beginning of the fiscal year and ending on December 31 of the year in which the owner reaches 90 years of age.

(2) The following interest rate assumptions are to be used to determine the amount “F” in the definition of “B” in subsection (1):

1. The interest rate for each of the first 15 fiscal years of the period referred to in the definition of “F” is the greater of 6 per cent and the nominal rate of interest on long-term bonds issued by the Government of Canada for November of the year before the beginning of the fiscal year, as determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122487 compiled by Statistics Canada and available on the website maintained by the Bank of Canada.

2. For the 16th and each subsequent fiscal year of the period referred to in the definition of “F”, the interest rate is 6 per cent.

(3) The amount of income paid out of the fund during a fiscal year must not be less than the minimum amount prescribed for an RRIF under the Income Tax Act (Canada).

(4) If the minimum amount specified by subsection (3) is greater than the maximum amount determined under subsection (1), the minimum amount must be paid out of the fund during the fiscal year. 

(5) This section shall not be construed to prevent or limit a payment from the fund that is permitted under section 3, 7.1, 8, 8.1 or 9 of this Schedule or under section 22.2 of this Regulation.

37. (1) Clauses 7 (1) (d), (e) and (f) of Schedule 2 to the Regulation are revoked.

(2) Section 7 of Schedule 2 to the Regulation is amended by adding the following subsections:

(4) A life annuity referred to in subsection (1) shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the fund was determined in a manner that did not differentiate on the basis of sex.

(5) The financial institution shall not make a transfer described in subsection (1) except where,

(a) the transfer is permitted under the Act and this Regulation; and

(b) the transferee agrees to administer the amount transferred in accordance with the Act and this Regulation. 

(6) The financial institution shall advise the transferee in writing that the amount transferred must be administered in accordance with the Act and this Regulation. 

38. Schedule 2 to the Regulation is amended by adding the following section after the heading “Withdrawals from the Fund”:

7.1 (1) On or after January 1, 2011, the owner of a locked-in retirement income fund may, upon application in accordance with this section, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 50 per cent of the total market value of the assets of the fund.

(2) For the purposes of subsection (1), the total market value of the assets of the fund is determined using the most recent statement about the fund given to the owner.  The statement must be dated within one year before the owner signs the application. 

(3) For the purposes of subsection (1), the owner of a fund may make a maximum of one withdrawal or transfer from the fund. 

(4) Despite subsection (1), no amount may be withdrawn or transferred under this section unless an application for the withdrawal or transfer is given to the financial institution that administers the fund on or before April 30, 2012.

(5) The application must be made on a form approved by the Superintendent.

(6) The application form must be signed by the owner and accompanied by one of the following documents:

1. A declaration described in section 10 about a spouse.

2. A statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(7) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(8) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

39. (1) The French version of paragraph 2 of subsection 8 (6) of Schedule 2 to the Regulation is amended by striking out “compte” and substituting “fonds”.

(2) Paragraph 4 of subsection 8 (6) of Schedule 2 to the Regulation is amended by striking out “document” at the end and substituting “documents”.

40. Section 10 of Schedule 2 to the Regulation is amended by striking out “section 8, 8.1 or 9” in the portion before paragraph 1 and substituting “section 7.1, 8, 8.1 or 9”.

41. (1) Subsection 11 (1) of Schedule 2 to the Regulation is amended by striking out  “section 8, 8.1 or 9” and substituting  “section 7.1, 8, 8.1 or 9”.

(2) Subsection 11 (2) of Schedule 2 to the Regulation is amended by striking out  “section 8, 8.1 or 9” and substituting  “section 7.1, 8, 8.1 or 9”.

42. The English version of subsection 12 (1) of Schedule 2 to the Regulation is amended by striking out “the owner’s beneficiary” and substituting “the owner’s named beneficiary”.

43. Subsection 13 (5) of Schedule 2 to the Regulation is revoked and the following substituted:

(5) Notices under this section must be in writing and must be sent to the owner’s address as set out in the records of the financial institution.

44. (1) Paragraph 1 of subsection 14 (2) of Schedule 2 to the Regulation is revoked and the following substituted:

1. With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings, including any unrealized capital gains or losses, the payments made out of the fund, the withdrawals taken out of the fund and the fees charged against the fund. 

(2) Section 14 of Schedule 2 to the Regulation is amended by adding the following subsections:

(5) The following information must be provided to the owner at the beginning of the fiscal year of the fund that ends on December 31, 2010:

1. That, on or after January 1, 2011, the owner will not be able to elect to be paid all or part of the amount carried forward under section 6 of this Schedule from a prior fiscal year. 

2. That if, on or after January 1, 2011, the owner elects to be paid an amount that is less than the maximum amount determined under section 6 of this Schedule, the owner will not be able to carry forward the amount of the difference between the amount elected and the maximum amount.

(6) The following information must be provided to the owner on or before September 30, 2010:

1.   That, on or after January 1, 2011, the owner of the fund may, upon application in accordance with section 7.1 of this Schedule, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 50 per cent of the total market value of the assets of the fund, as determined using the most recent statement about the fund given to the owner.  The statement must be dated within one year before the owner signs the application. 

2. That the owner of the fund may make a maximum of one withdrawal or transfer under section 7.1 of this Schedule from the fund. 

3. That no withdrawal or transfer may be made under section 7.1 of this Schedule unless an application for the withdrawal or transfer is given to the financial institution on or before April 30, 2012.

4. That, on or after January 1, 2011, the amount of income paid out of the fund during a fiscal year must not exceed the greater of “A” and “B” where,

“A” is the amount of the investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year, and

“B” is the amount calculated using the formula set out in subsection 6 (1) of Schedule 1 to this Regulation. 

5. That the owner may not transfer assets from the fund to a locked-in retirement account after December 31, 2010.

6. That after December 31, 2010, if assets are transferred from the fund to a life income fund that is governed by Schedule 1.1, the owner cannot make a withdrawal or transfer described in subsection 8 (1) of Schedule 1.1. 

45. The Regulation is amended by adding the following Schedule: 

Schedule 3
Locked-in retirement account requirements

Establishing the Account

1. (1) The following persons may purchase a locked-in retirement account in accordance with this section:

1. A former member who is entitled to make a transfer under clause 42 (1) (b) of the Act.

2. A spouse or former spouse of a person who was a member who is entitled to make a transfer under clause 42 (1) (b) of the Act. 

3. A person who has previously transferred an amount under clause 42 (1) (b) of the Act into a locked-in retirement account. 

(2) The account must be purchased using all or part of the amount transferred under clause 42 (1) (b) of the Act, or using all or part of the assets in a locked-in retirement account. 

(3) For the purposes of this Schedule, a locked-in retirement account includes a contract made before June 24, 1994 to establish an RRSP for the purposes of a transfer under clause 42 (1) (b) of the Act. 

2. (1) A contract establishing a locked-in retirement account must provide for the matters described in this section. 

(2) It must indicate the name and address of the financial institution providing the account.

(3) It must describe the owner’s powers, if any, respecting investment of the assets in the account. 

(4) It must state that the owner agrees not to assign, charge, anticipate or give as security money in the account except as required by an order under the Family Law Act or by a domestic contract as defined in Part IV of that Act, subject to the maximum set out in subsection 66 (4) of the Act. 

(5) It must describe the method for determining the value of the assets in the account. 

(6) It must indicate whether the commuted value of the pension benefit that was transferred into the account was determined in a manner that differentiated on the basis of sex. 

3. (1) Money in a locked-in retirement account cannot be commuted, withdrawn or surrendered in whole or in part, except as permitted by section 49 or 67 of the Act, section 22.2 of this Regulation or this Schedule. 

(2) Every contract establishing a locked-in retirement account shall be deemed to include a provision setting out the restriction described in subsection (1). 

(3) Any transaction that contravenes subsection (1) is void. 

4. The fiscal year of a locked-in retirement account must end on December 31 and must not exceed 12 months. 

Transferring Assets from the Account

5. (1) The owner of a locked-in retirement account may transfer any or all of the assets in it,

(a) to the pension fund of a pension plan registered under the pension benefits legislation in any Canadian jurisdiction or to a pension plan provided by a government in Canada;

(b) to another locked-in retirement account;

(c) to a life income fund that is governed by Schedule 1.1; or

(d) to purchase an immediate or deferred life annuity that meets the requirements of section 22 of this Regulation. 

(2) In the contract governing the account, the financial institution must agree to make such a transfer within 30 days after the owner requests it.  This does not apply with respect to the transfer of assets held as securities whose term of investment extends beyond the 30-day period. 

(3) If assets in the account consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner. 

(4) For the purposes of the purchase of an immediate life annuity referred to in clause (1) (d), a determination as to whether the owner has a spouse is to be made on the date the annuity is purchased. 

(5) Payments under a life annuity referred to in clause (1) (d) are subject to division in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act. 

(6) A life annuity referred to in clause (1) (d) shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the account was determined in a manner that did not differentiate on the basis of sex.

(7) Payments under a life annuity referred to in clause (1) (d) must not begin before the earlier of,

(a) the earliest date on which the owner of the annuity would have been entitled as a former member to receive pension benefits under the Act as a result of termination of employment or termination of membership in any pension plan, from which money was transferred directly or indirectly into the locked-in retirement account; or

(b) the earliest date on which the owner of the annuity would have been entitled as a former member to receive pension benefits under any pension plan described in clause (a) as a result of termination of employment or termination of membership in the plan.

(8) The financial institution shall not make a transfer described in subsection (1) except where,

(a) the transfer is permitted under the Act and this Regulation; and

(b) the transferee agrees to administer the amount transferred in accordance with the Act and this Regulation. 

(9) The financial institution shall advise the transferee in writing that the amount transferred must be administered in accordance with the Act and this Regulation. 

Withdrawals from the Account

6. (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all the money in the account or transfer the assets to an RRSP or RRIF if, when the owner signs the application,

(a) he or she is at least 55 years of age; and

(b) the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year.

(2) An application for the withdrawal or transfer from the account must be given to the financial institution that administers the account.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by one of the following documents:

1. A declaration described in section 9 about a spouse. 

2. A statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) If assets in the account consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(6) The contract governing the account must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the account in accordance with this section.

3. The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application.

4. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

7. (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all the money in the account,

(a) if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act (Canada); and

(b) if the application is made at least 24 months after his or her date of departure from Canada.

(2) An application to withdraw the money from the account must be given to the financial institution that administers the account. 

(3) The application must be made on a form approved by the Superintendent. 

(4) The application form must be signed by the owner and accompanied by the following documents:

1. A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the Income Tax Act (Canada).

2. Either a declaration described in section 9 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the account must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the account in accordance with this section. 

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

8. (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all or part of the money in the account if, when the owner signs the application, he or she has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

(2) An application to withdraw money from the account must be given to the financial institution that administers the account.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and be accompanied by the following documents:

1. A statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the owner has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

2. Either a declaration described in section 9 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the account must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the account in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

9. Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 6, 7 or 8 from a locked-in retirement account:

1. A statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal or transfer from the account.

2. A statement signed by the owner attesting to the fact that he or she does not have a spouse.

3. A statement signed by the owner attesting to the fact that he or she is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer from the account.

10. (1) If the owner of a locked-in retirement account is required by section 6, 7 or 8 to give a document to a financial institution and if the document is one that must be signed by the owner or by his or her spouse, the document is a nullity if it is signed by the owner or the spouse more than 60 days before the financial institution receives it. 

(2) When the financial institution receives a document required by section 6, 7 or 8, the financial institution shall give the owner of the account a receipt for the document stating the date on which it was received. 

Survivor’s Benefits

11. (1) Upon the death of the owner of a locked-in retirement account, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the account. 

(2) The benefit described in subsection (1) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada). 

(3) A spouse of the owner is not entitled to receive the value of the assets in the account unless the owner was a member or former member of a pension plan from which assets were transferred directly or indirectly to purchase the account. 

(4) A spouse who is living separate and apart from the owner on the date of the owner’s death is not entitled to receive the value of the assets in the account. 

(5) For the purposes of subsection (1), a determination as to whether the owner has a spouse is to be made on the date of the owner’s death. 

(6) For the purposes of subsection (1), the value of the assets in the account includes all accumulated investment earnings, including any unrealized capital gains and losses, of the account from the date of death until the date of payment. 

12. (1) A spouse of the owner of a locked-in retirement account may waive his or her entitlement to receive the survivor’s benefit described in section 11 from the account by delivering to the financial institution a written waiver in a form approved by the Superintendent. 

(2) A spouse who has delivered a waiver under subsection (1) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the account.

Amending the Account

13. (1) In the contract governing a locked-in retirement account, the financial institution providing the account must agree not to amend the contract except as provided in this section. 

(2) The financial institution must give the owner of the account at least 90 days notice of a proposed amendment, other than an amendment described in subsection (3). 

(3) The financial institution must not amend the contract governing the account if the amendment would result in a reduction in the owner’s rights under the contract unless,

(a) the financial institution is required by law to make the amendment; and

(b) the owner is entitled to transfer the assets in the account under the terms of the contract that exist before the amendment is made. 

(4) When making an amendment described in subsection (3), the financial institution must notify the owner of the account of the nature of the amendment and allow the owner at least 90 days after the notice is given to transfer all or part of the assets in the account. 

(5) Notices under this section must be in writing and must be sent to the owner’s address as set out in the records of the financial institution.

Information to be Provided by the Financial Institution

14. (1) In the contract governing a locked-in retirement account, the financial institution must agree to provide the information described in this section to the person indicated. 

(2) At the beginning of each fiscal year, the following information must be provided to the owner:

1. With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings, including any unrealized capital gains or losses, the payments made out of the account, the withdrawals taken out of the account and the fees charged against the account. 

2. The value of the assets in the account as of the beginning of the fiscal year. 

(3) If the assets in the account are transferred as described in subsection 5 (1), the owner must be given the information described in subsection (2) determined as of the date of the transfer.

(4) Upon the death of the owner, the person entitled to receive the assets in the account must be given the information described in subsection (2) determined as of the date of the owner’s death.

46. (1) Subject to subsections (2) to (4), this Regulation comes into force on the day it is filed.

(2) Subsections 1 (1), 10 (3) and 11 (2) and (3), sections 12 and 14, subsection 15 (2), sections 17 and 18, subsection 26 (2), section 28, subsections 29 (4) and 34 (2) and sections 36, 37 and 45 come into force on the later of January 1, 2011 and the day this Regulation is filed.

(3) Subsection 1 (2) and sections 2 to 7 are deemed to have come into force on September 30, 2008.

(4) Section 8 is deemed to have come into force on December 11, 2008.

 

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