Canada Education Savings Act (S.C. 2004, c. 26)
Full Document:
Assented to 2004-12-15
21. (1) The definition “contribution” in subsection 146.1(1) of the Act is replaced by the following:
“contribution”
« cotisation »
“contribution”, into an education savings plan, does not include an amount paid into the plan under the Canada Education Savings Act or under a program administered pursuant to an agreement entered into under section 12 of that Act;
(2) The portion of the definition “education savings plan” in subsection 146.1(1) of the Act before paragraph (b) is replaced by the following:
“education savings plan”
« régime d’épargne-études »
“education savings plan” means an arrangement entered into between
(a) any of the following, namely,
(i) an individual (other than a trust),
(ii) an individual (other than a trust) and the spouse or common-law partner of the individual, and
(iii) a public primary caregiver of a beneficiary, and
(3) Paragraph (a) of the definition “subscriber” in subsection 146.1(1) of the Act is replaced by the following:
(a) each individual or the public primary caregiver with whom the promoter of the plan enters into the plan,
(a.1) another individual or another public primary caregiver who has before that time, under a written agreement, acquired a public primary caregiver’s rights as a subscriber under the plan,
(4) The portion of the definition “subscriber” in subsection 146.1(1) of the Act after paragraph (b) is replaced by the following:
(c) after the death of an individual described in any of paragraphs (a) to (b), any other person (including the estate of the deceased individual) who acquires the individual’s rights as a subscriber under the plan or who makes contributions into the plan in respect of a beneficiary
but does not include an individual or a public primary caregiver whose rights as a subscriber under the plan had, before that time, been acquired by an individual or public primary caregiver in the circumstances described in paragraph (a.1) or (b);
(5) Paragraph (c.1) of the definition “trust” in subsection 146.1(1) of the Act is replaced by the following:
(c.1) the repayment of amounts (and the payment of amounts related to that repayment) under the Canada Education Savings Act or under a program administered pursuant to an agreement entered into under section 12 of that Act,
(6) Subsection 146.1(1) of the Act is amended by adding the following in alphabetical order:
“public primary caregiver”
« responsable public »
“public primary caregiver”, of a beneficiary under an education savings plan in respect of whom a special allowance is payable under the Children’s Special Allowances Act, means the department, agency or institution that maintains the beneficiary or the public trustee or public curator of the province in which the beneficiary resides;
(7) Paragraph 146.1(2)(d.1) of the Act is replaced by the following:
(d.1) subject to subsection (2.2), if the plan allows accumulated income payments, the plan provides that an accumulated income payment is permitted to be made only if
(i) the payment is made to, or on behalf of, a subscriber under the plan who is resident in Canada when the payment is made,
(ii) the payment is not made jointly to, or on behalf of, more than one subscriber, and
(iii) any of
(A) the payment is made after the 9th year that follows the year in which the plan was entered into and each individual (other than a deceased individual) who is or was a beneficiary under the plan has attained 21 years of age before the payment is made and is not, when the payment is made, eligible under the plan to receive an educational assistance payment,
(B) the payment is made in the 25th year following the year in which the plan is entered into, or
(C) each individual who was a beneficiary under the plan is deceased when the payment is made;
(7.1) Clause 146.1(2)(g.1)(i)(A) of the Act is replaced by the following:
(A) the individual is at that time enrolled as a full-time or part-time student in a qualifying educational program at a post-secondary educational institution, or
(8) Clause 146.1(2)(g.1)(ii)(B) of the Act is replaced by the following:
(B) the total of the payment and all other educational assistance payments made under a registered education savings plan of the promoter to or for the individual in the 12-month period that ends at that time does not exceed $5,000 or any greater amount that the Minister designated for the purpose of the Canada Education Savings Act approves in writing with respect to the individual;
(9) Paragraph 146.1(2)(l) of the Act is replaced by the following:
(l) the plan provides that the promoter shall, within 90 days after an individual becomes a beneficiary under the plan, notify the individual (or, where the individual is under 19 years of age at that time and either ordinarily resides with a parent of the individual or is maintained by a public primary caregiver of the individual, that parent or public primary caregiver) in writing of the existence of the plan and the name and address of the subscriber in respect of the plan;
(9.1) Subsection 146.1(2.2) of the Act is replaced by the following:
Marginal note:Waiver of conditions for accumulated income payments
(2.2) The Minister may, on written application of the promoter of a registered education savings plan, waive the application of the conditions in clause (2)(d.1)(iii)(A) in respect of the plan where a beneficiary under the plan suffers from a severe and prolonged mental impairment that prevents, or can reasonably be expected to prevent, the beneficiary from enrolling in a qualifying educational program at a post-secondary educational institution.
(10) The portion of paragraph 146.1(6.1)(b) of the Act before subparagraph (i) is replaced by the following:
(b) for the purposes of this paragraph and paragraphs (2)(d.1), (h) and (i), the transferee plan is deemed to have been entered into on the day that is the earlier of
(11) Paragraph 146.1(12.1)(e) of the Act is replaced by the following:
(e) a day on which a person fails to comply with a condition or an obligation, imposed under the Canada Education Savings Act or under a program administered pursuant to an agreement entered into under section 12 of that Act, that applies with respect to a registered education savings plan,
(12) Section 146.1 of the Act is amended by adding the following after subsection (13.1):
Marginal note:Former Act
(14) A reference
(a) in this section, in paragraph 60(x) or in subparagraph 241(4)(d)(vii.1) to the Canada Education Savings Act, to an amount paid, to the payment of an amount or to the repayment of an amount, or to a condition or an obligation imposed, under that Act includes a reference to Part III.1 of the Department of Human Resources Development Act, or to an amount paid, to the payment of an amount or to the repayment of an amount, or to a condition or an obligation imposed, as the case may be, under that Part as it read at the time the reference is relevant; and
(b) in clause (2)(g.1)(ii)(B) to an amount that the Minister designated for the purpose of the Canada Education Savings Act approves in writing with respect to an individual includes a reference to an amount that the Minister of Human Resources Development or the Minister of State to be styled Minister of Human Resources and Skills Development has approved in writing, before the day on which a Minister is designated for the purposes of that Act, with respect to the individual.
22. Subparagraph 241(4)(d)(vii.1) of the Act is replaced by the following:
(vii.1) to an official solely for the purpose of the administration or enforcement of the Canada Education Savings Act or a program administered pursuant to an agreement entered into under section 12 of that Act,
COMING INTO FORCE
Marginal note:Order in council
23. The provisions of this Act, other than sections 4, 12, 17 and 20 to 22, come into force on a day or days to be fixed by order of the Governor in Council.
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