Marginal note:Transfer — money purchase to money purchase, RRSP or RRIF
147.3 (1) An amount is transferred from a registered pension plan in accordance with this subsection if the amount
(a) is a single amount;
(b) is transferred on behalf of a member in full or partial satisfaction of the member’s entitlement to benefits under a money purchase provision of the plan as registered; and
(c) is transferred directly to
(i) another registered pension plan to provide benefits in respect of the member under a money purchase provision of that plan,
(ii) a registered retirement savings plan under which the member is the annuitant (within the meaning assigned by subsection 146(1)),
(iii) a registered retirement income fund under which the member is the annuitant (within the meaning assigned by subsection 146.3(1)), or
(iv) a licensed annuities provider to acquire an advanced life deferred annuity for the benefit of the member.
Marginal note:Transfer — money purchase to defined benefit
(2) An amount is transferred from a registered pension plan in accordance with this subsection if the amount
(a) is a single amount;
(b) is transferred on behalf of a member in full or partial satisfaction of the member’s entitlement to benefits under a money purchase provision of the plan as registered; and
(c) is transferred directly to another registered pension plan to fund benefits provided in respect of the member under a defined benefit provision of that plan.
Marginal note:Transfer — defined benefit to defined benefit
(3) An amount is transferred from a registered pension plan (in this subsection referred to as the “transferor plan”) in accordance with this subsection if the amount
(a) is a single amount;
(b) consists of all or any part of the property held in connection with a defined benefit provision of the transferor plan;
(c) is transferred directly to another registered pension plan to be held in connection with a defined benefit provision of the other plan, unless the transfer is to an individual pension plan (as defined in subsection 8300(1) of the Income Tax Regulations) and is in respect of benefits that are attributable to employment with a former employer that is not a participating employer (or its predecessor employer); and
(d) is transferred as a consequence of benefits becoming provided under the defined benefit provision of the other plan to one or more individuals who were members of the transferor plan.
Marginal note:Transfer — defined benefit to money purchase, RRSP or RRIF
(4) An amount is transferred from a registered pension plan in accordance with this subsection if the amount
(a) is a single amount no portion of which relates to an actuarial surplus;
(b) is transferred on behalf of a member in full or partial satisfaction of benefits to which the member is entitled, either absolutely or contingently, under a defined benefit provision of the plan as registered;
(c) does not exceed a prescribed amount; and
(d) is transferred directly to
(i) another registered pension plan and allocated to the member under a money purchase provision of that plan,
(ii) a registered retirement savings plan under which the member is the annuitant (within the meaning assigned by subsection 146(1)), or
(iii) a registered retirement income fund under which the member is the annuitant (within the meaning assigned by subsection 146.3(1)).
Marginal note:Transfer of surplus — defined benefit to money purchase
(4.1) An amount is transferred from a registered pension plan in accordance with this subsection if the amount
(a) is transferred in respect of the actuarial surplus under a defined benefit provision of the plan; and
(b) is transferred directly to another registered pension plan and allocated under a money purchase provision of that plan to one or more members of that plan.
Marginal note:Transfer to RPP, RRSP or RRIF for spouse on marriage breakdown
(5) An amount is transferred from a registered pension plan in accordance with this subsection if the amount
(a) is a single amount no portion of which relates to an actuarial surplus;
(b) is transferred on behalf of an individual who is a spouse or common-law partner or former spouse or common-law partner of a member of the plan and who is entitled to the amount under a decree, order or judgment of a competent tribunal, or under a written agreement, relating to a division of property between the member and the individual in settlement of rights arising out of, or on a breakdown of, their marriage or common-law partnership; and
(c) is transferred directly to
(i) another registered pension plan for the benefit of the individual,
(ii) a registered retirement savings plan under which the individual is the annuitant (within the meaning assigned by subsection 146(1)), or
(iii) a registered retirement income fund under which the individual is the annuitant (within the meaning assigned by subsection 146.3(1)).
Marginal note:Transfer — pre-1991 contributions
(6) An amount is transferred from a registered pension plan in accordance with this subsection if the amount
(a) is a single amount;
(b) is transferred on behalf of a member who is entitled to the amount as a return of contributions made (or deemed by regulation to have been made) by the member under a defined benefit provision of the plan before 1991, or as interest (computed at a rate not exceeding a reasonable rate) in respect of those contributions; and
(c) is transferred directly to
(i) another registered pension plan for the benefit of the member,
(ii) a registered retirement savings plan under which the member is the annuitant (within the meaning assigned by subsection 146(1)), or
(iii) a registered retirement income fund under which the member is the annuitant (within the meaning assigned by subsection 146.3(1)).
Marginal note:Transfer — lump sum benefits on death
(7) An amount is transferred from a registered pension plan in accordance with this subsection if the amount
(a) is a single amount no portion of which relates to an actuarial surplus;
(b) is transferred on behalf of an individual who is entitled to the amount as a consequence of the death of a member of the plan and who was a spouse or common-law partner or former spouse or common-law partner of the member at the date of the member’s death; and
(c) is transferred directly to
(i) another registered pension plan for the benefit of the individual,
(ii) a registered retirement savings plan under which the individual is the annuitant (within the meaning assigned by subsection 146(1)), or
(iii) a registered retirement income fund under which the individual is the annuitant (within the meaning assigned by subsection 146.3(1)).
Marginal note:Transfer where money purchase plan replaces money purchase plan
(7.1) An amount is transferred from a registered pension plan (in this subsection referred to as the “transferor plan”) in accordance with this subsection if
(a) the amount is a single amount;
(b) the amount is transferred in respect of the surplus (as defined by regulation) under a money purchase provision (in this subsection referred to as the “former provision”) of the transferor plan;
(c) the amount is transferred directly to another registered pension plan to be held in connection with a money purchase provision (in this subsection referred to as the “current provision”) of the other plan;
(d) the amount is transferred in conjunction with the transfer of amounts from the former provision to the current provision on behalf of all or a significant number of members of the transferor plan whose benefits under the former provision are replaced by benefits under the current provision; and
(e) the transfer is acceptable to the Minister and the Minister has so notified the administrator of the transferor plan in writing.
Marginal note:Transfer where money purchase plan replaces defined benefit plan
(8) An amount is transferred from a registered pension plan (in this subsection referred to as the “transferor plan”) in accordance with this subsection if
(a) the amount is a single amount;
(b) the amount is transferred in respect of the actuarial surplus under a defined benefit provision of the transferor plan;
(c) the amount is transferred directly to another registered pension plan to be held in connection with a money purchase provision of the other plan;
(d) the amount is transferred in conjunction with the transfer of amounts from the defined benefit provision to the money purchase provision on behalf of all or a significant number of members of the transferor plan whose benefits under the defined benefit provision are replaced by benefits under the money purchase provision; and
(e) the transfer is acceptable to the Minister and the Minister has so notified the administrator of the transferor plan in writing.
Marginal note:Taxation of amount transferred
(9) Where an amount is transferred in accordance with any of subsections 147.3(1) to (8),
(a) the amount shall not, by reason only of that transfer, be included by reason of subparagraph 56(1)(a)(i) in computing the income of any taxpayer; and
(b) no deduction may be made under any provision of this Act in respect of the amount in computing the income of any taxpayer.
Marginal note:Idem
(10) Where, on behalf of an individual, an amount is transferred from a registered pension plan (in this subsection referred to as the “transferor plan”) to another plan or fund (in this subsection referred to as the “transferee plan”) that is a registered pension plan, a registered retirement savings plan or a registered retirement income fund and the transfer is not in accordance with any of subsections 147.3(1) to (7),
(a) the amount is deemed to have been paid from the transferor plan to the individual;
(b) subject to paragraph 147.3(10)(c), the individual shall be deemed to have paid the amount as a contribution or premium to the transferee plan; and
(c) where the transferee plan is a registered retirement income fund, for the purposes of subsection 146(5) and Part X.1, the individual shall be deemed to have paid the amount at the time of the transfer as a premium under a registered retirement savings plan under which the individual was the annuitant (within the meaning assigned by subsection 146(1)).
Marginal note:Division of transferred amount
(11) Where an amount is transferred from a registered pension plan to another registered pension plan, to a registered retirement savings plan or to a registered retirement income fund and a portion, but not all, of the amount is transferred in accordance with any of subsections 147.3(1) to (8),
(a) subsection 147.3(9) applies with respect to the portion of the amount that is transferred in accordance with any of subsections 147.3(1) to (8); and
(b) subsection 147.3(10) applies with respect to the remainder of the amount.
Marginal note:Restriction re transfers
(12) A registered pension plan becomes a revocable plan at any time that an amount is transferred from the plan to another registered pension plan, to a registered retirement savings plan or to a registered retirement income fund unless
(a) the amount is transferred in accordance with any of subsections 147.3(1) to (8); or
(b) where the amount is transferred on behalf of an individual,
(i) the amount is deductible by the individual under paragraph 60(j) or (j.2), or
(ii) the Pension Benefits Standards Act, 1985 or a similar law of a province prohibits the payment of the amount to the individual.
Marginal note:Excess transfer
(13) Where
(a) the transfer in a calendar year of an amount from a registered pension plan on behalf of a member of the plan would, but for this subsection, be in accordance with subsection 147.3(1) or (2), and
(b) the plan becomes, at the end of the year, a revocable plan as a consequence of an excess determined under any of paragraphs 147.1(8)(a) and (b) and (9)(a) and (b) with respect to the member (whether or not such an excess is also determined with respect to any other member),
such portion of the amount transferred as may reasonably be considered to derive from amounts allocated or reallocated to the member in the year or from earnings reasonably attributable to those amounts shall, except to the extent otherwise expressly provided in writing by the Minister, be deemed to be an amount that was not transferred in accordance with subsection 147.3(1) or (2), as the case may be.
Marginal note:Withdrawal of excessive transfers to RRSPs and RRIFs
(13.1) There may be deducted in computing the income of an individual for a taxation year the lesser of
(a) the amount, if any, by which
(i) the total of all amounts each of which is an amount included under clause 56(1)(a)(i)(C), paragraph 56(1)(z.3), subsections 146(8), (8.3) or (12) or 146.3(5), (5.1) or (11) in computing the individual’s income for the year, to the extent that the amount is not a prescribed withdrawal,
exceeds
(ii) the total of all amounts each of which is an amount deductible under paragraph 60(l) or subsection 146(8.2) in computing the income of the individual for the year, and
(b) the amount, if any, by which
(i) the total of all amounts each of which is an amount that was
(A) transferred to a registered retirement savings plan or registered retirement income fund under which the individual was the annuitant (within the meaning assigned by subsection 146(1) or 146.3(1), as the case may be),
(B) included in computing the income of the individual for the year or a preceding taxation year, and
(C) deemed by paragraph 147.3(10)(b) or 147.3(10)(c) to have been paid by the individual as a premium to a registered retirement savings plan,
exceeds
(ii) the total of all amounts each of which is an amount
(A) deductible under this subsection in computing the individual’s income for a preceding taxation year, or
(B) deducted under subsection 146(5) in computing the individual’s income for a preceding taxation year, to the extent that the amount can reasonably be considered to be in respect of an amount referred to in subparagraph 147.3(13.1)(b)(i).
Marginal note:Deemed transfer
(14) For the purposes of this section and the regulations, where property held in connection with a particular pension plan is made available to pay benefits under another pension plan, the property shall be deemed to have been transferred from the particular plan to the other plan.
Marginal note:Transfer of property between provisions
(14.1) Where property held in connection with a benefit provision of a registered pension plan is made available to pay benefits under another benefit provision of the plan, subsections 147.3(9) to 147.3(11) apply in respect of the transaction by which the property is made so available in the same manner as they would apply if the other benefit provision were in another registered pension plan.
(15) [Repealed, 1998, c. 19, s. 175(2)]
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- R.S., 1985, c. 1 (5th Supp.), s. 147.3
- 1994, c. 7, Sch. VIII, s. 86
- 1997, c. 25, s. 45
- 1998, c. 19, ss. 40, 175
- 2000, c. 12, s. 142
- 2001, c. 17, s. 144
- 2013, c. 34, s. 304
- 2017, c. 33, s. 59
- 2021, c. 23, s. 36
- Date modified: