Jobs and Growth Act, 2012 (S.C. 2012, c. 31)
Full Document:
Assented to 2012-12-14
33. (1) The portion of the definition “registered education savings plan” in subsection 146.1(1) of the Act before paragraph (a) is replaced by the following:
“registered education savings plan” or “RESP”
« régime enregistré d’épargne-études » ou « REEE »
“registered education savings plan” or “RESP” means
(2) Section 146.1 of the Act is amended by adding the following after subsection (1):
Marginal note:Election
(1.1) A subscriber under an RESP that allows accumulated income payments and a holder of an RDSP may jointly elect in prescribed form to have subsection (1.2) apply in respect of a beneficiary under the RESP if, at the time the election is made, the beneficiary is also the beneficiary under the RDSP and
(a) the beneficiary has 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; or
(b) the RESP meets the conditions described in clause (2)(d.1)(iii)(A) or (B) to make an accumulated income payment.
Marginal note:Effect of election
(1.2) If an election is made under subsection (1.1) and is filed by the promoter of the RESP with the Minister without delay, then notwithstanding paragraph (2)(d.1) and any terms of the RESP required by that paragraph, an accumulated income payment under the RESP may be made to the RDSP.
(3) Paragraph 146.1(2)(i.1) of the Act is replaced by the following:
(i.1) if the plan allows accumulated income payments, the plan provides that it must be terminated before March of the year following the year in which the first such payment is made out of the plan;
(4) Paragraph 146.1(7.1)(a) of the Act is replaced by the following:
(a) each accumulated income payment (other than an accumulated income payment made under subsection (1.2)) received in the year by the taxpayer under a registered education savings plan; and
(5) Subsections (2) to (4) come into force on January 1, 2014.
34. (1) Paragraph 146.3(2)(f) of the Act is amended by striking out “or” at the end of subparagraph (vi), by adding “or” at the end of subparagraph (vii) and by adding the following after subparagraph (vii):
(viii) a pooled registered pension plan in accordance with subsection 147.5(21);
(2) Subsection 146.3(14.1) of the Act is replaced by the following:
Marginal note:Transfer to PRPP or RPP
(14.1) An amount is transferred from a registered retirement income fund of an annuitant in accordance with this subsection if the amount
(a) is transferred at the direction of the annuitant directly to an account of the annuitant under a pooled registered pension plan; or
(b) is transferred at the direction of the annuitant directly to a registered pension plan of which, at any time before the transfer, the annuitant was a member (within the meaning assigned by subsection 147.1(1)) or to a prescribed registered pension plan and is allocated to the annuitant under a money purchase provision (within the meaning assigned by subsection 147.1(1)) of the plan.
(3) Subsections (1) and (2) come into force or are deemed to have come into force on the day on which the Pooled Registered Pension Plans Act comes into force.
35. (1) The definition “registered disability savings plan” in subsection 146.4(1) of the Act is replaced by the following:
“registered disability savings plan” or “RDSP”
« régime enregistré d’épargne-invalidité » ou « REEI »
“registered disability savings plan” or “RDSP” means a disability savings plan that satisfies the conditions in subsection (2), but does not include a plan to which subsection (3) or (10) applies.
(2) Paragraph (d) of the definition “contribution” in subsection 146.4(1) of the Act is replaced by the following:
(d) other than for the purposes of paragraphs (4)(f) to (h) and (n) and paragraph (b) of the definition “advantage” in subsection 205(1),
(i) a specified RDSP payment as defined in subsection 60.02(1), or
(ii) an accumulated income payment made to the plan under subsection 146.1(1.2).
(3) Paragraph (c) of the definition “holder” in subsection 146.4(1) of the Act is replaced by the following:
(c) the beneficiary if, at that time, the beneficiary is not an entity described in paragraph (a) or (b) and has rights under the plan to make decisions (either alone or with other holders of the plan) concerning the plan, except where the only such right is a right to direct that disability assistance payments be made as provided for in subparagraph (4)(n)(ii).
(4) Subsection 146.4(1) of the Act is amended by adding the following in alphabetical order:
“specified maximum amount”
« plafond »
“specified maximum amount”, for a calendar year in respect of a disability savings plan, means the amount that is the greater of
(a) the amount determined by the formula set out in paragraph (4)(l) in respect of the plan for the calendar year, and
(b) the amount determined by the formula
A + B
where
- A
- is 10% of the fair market value of the property held by the plan trust at the beginning of the calendar year (other than annuity contracts held by the plan trust that, at the beginning of the calendar year, are not described in paragraph (b) of the definition “qualified investment” in subsection 205(1)), and
- B
- is the total of all amounts each of which is
(i) a periodic payment under an annuity contract held by the plan trust at the beginning of the calendar year (other than an annuity contract described at the beginning of the calendar year in paragraph (b) of the definition “qualified investment” in subsection 205(1)) that is paid to the plan trust in the calendar year, or
(ii) if the periodic payment under such an annuity contract is not made to the plan trust because the plan trust disposed of the right to that payment in the calendar year, a reasonable estimate of that payment on the assumption that the annuity contract had been held throughout the calendar year and no rights under the contract were disposed of in the calendar year.
(5) Paragraphs 146.4(1.2)(b) to (f) of the Act are replaced by the following:
(b) the time that is immediately before the earliest time in a calendar year when the total disability assistance payments, other than non-taxable portions, made from the plan in the year and while it was a specified disability savings plan exceeds $10,000 (or such greater amount as is required to satisfy the condition in subparagraph (d)(i));
(c) the time that is immediately before the time that
(i) a contribution is made to the plan,
(ii) an amount described in any of paragraphs (a) and (b) and subparagraph (d)(ii) of the definition “contribution” in subsection (1) is paid into the plan,
(iii) the plan is terminated,
(iv) the plan ceases to be a registered disability savings plan as a result of the application of paragraph (10)(a), or
(v) is the beginning of the first calendar year throughout which the beneficiary under the plan has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1); and
(d) the time immediately following the end of a calendar year if
(i) in the year the total amount of disability assistance payments made from the plan to the beneficiary is less than the amount determined by the formula set out in paragraph (4)(l) in respect of the plan for the year (or such lesser amount as is supported by the property of the plan), and
(ii) the year is not the calendar year in which the plan became a specified disability savings plan.
(6) Subsection 146.4(3) of the Act is replaced by the following:
Marginal note:Registered status nullified
(3) A disability savings plan is deemed never to have been a registered disability savings plan unless
(a) the issuer of the plan provides without delay notification of the plan’s establishment in prescribed form containing prescribed information to the specified Minister; and
(b) if the beneficiary is the beneficiary under another registered disability savings plan at the time the plan is established, that other plan is terminated without delay.
(7) Subparagraphs 146.4(4)(n)(i) to (iii) of the Act are replaced by the following:
(i) if the calendar year is not a specified year for the plan, the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year shall not exceed the specified maximum amount for the calendar year, except that, in calculating that total amount, any payment made following a transfer in the calendar year from another plan in accordance with subsection (8) is to be disregarded if it is made
(A) to satisfy an undertaking described in paragraph (8)(d), or
(B) in lieu of a payment that would otherwise have been permitted to be made from the other plan in the calendar year had the transfer not occurred, and
(ii) if the beneficiary attained the age of 27 years, but not the age of 59 years, before the calendar year, the beneficiary has the right to direct that, within the constraints imposed by subparagraph (i) and paragraph (j), one or more disability assistance payments be made from the plan to the beneficiary in the calendar year;
(8) Subsection 146.4(4) of the Act is amended by adding the following after paragraph (n):
(n.1) the plan provides that, if the beneficiary attained the age of 59 years before a calendar year, the total amount of disability assistance payments made from the plan to the beneficiary in the calendar year shall not be less than the amount determined by the formula set out in paragraph (l) in respect of the plan for the calendar year (or such lesser amount as is supported by the property of the plan trust);
(9) Paragraph 146.4(4)(o) of the Act is replaced by the following:
(o) the plan provides that, at the direction of the holders of the plan, the issuer shall transfer all of the property held by the plan trust (or an amount equal to its value) to another registered disability savings plan of the beneficiary, together with all information in its possession (other than information provided to the issuer of the other plan by the specified Minister) that may reasonably be considered necessary for compliance, in respect of the other plan, with the requirements of this Act and with any conditions and obligations imposed under the Canada Disability Savings Act; and
(10) Subparagraph 146.4(4)(p)(ii) of the Act is replaced by the following:
(ii) the first calendar year
(A) if an election is made under subsection (4.1), that includes the time that the election ceases because of paragraph (4.2)(b) to be valid, and
(B) in any other case, throughout which the beneficiary has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1).
(11) Section 146.4 of the Act is amended by adding the following after subsection (4):
Marginal note:Election on cessation of DTC-eligibility
(4.1) A holder of a registered disability savings plan may elect in respect of a beneficiary under the plan who is not a DTC-eligible individual for a particular taxation year if
(a) a medical doctor licensed to practise under the laws of a province certifies in writing that the nature of the beneficiary’s condition is such that, in the professional opinion of the medical doctor, the beneficiary is likely to become a DTC-eligible individual for a future taxation year;
(b) the beneficiary was a DTC-eligible individual for the year that immediately precedes the particular taxation year;
(c) the holder makes the election in a manner and format acceptable to the specified Minister before the end of the year immediately following the particular taxation year and provides the election and the medical certification in respect of the beneficiary to the issuer of the plan; and
(d) the issuer notifies the specified Minister of the election in a manner and format acceptable to the specified Minister.
Marginal note:Election
(4.2) An election under subsection (4.1) ceases to be valid at the time that is the earlier of
(a) the beginning of the first taxation year for which the beneficiary is again a DTC-eligible individual; and
(b) the end of the fourth taxation year following the particular taxation year referred to in subsection (4.1).
Marginal note:Transitional rule
(4.3) Unless an election is made under subsection (4.1), if 2011 or 2012 is the first calendar year throughout which the beneficiary of a registered disability savings plan has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1) and the plan has not been terminated, then notwithstanding subparagraph (4)(p)(ii) as it read on March 28, 2012 and any terms of the plan required by that subparagraph, the plan must be terminated no later than December 31, 2014.
(12) Paragraph 146.4(8)(c) of the Act is replaced by the following:
(c) the issuer of the prior plan provides the issuer of the new plan with all information in its possession concerning the prior plan (other than information provided to the issuer of the new plan by the specified Minister) as may reasonably be considered necessary for compliance, in respect of the new plan, with the requirements of this Act and with any conditions and obligations imposed under the Canada Disability Savings Act; and
(13) Subsections (2) to (5), (7), (8) and (10) and subsections 146.4(4.1) and (4.2) of the Act, as enacted by subsection (11), come into force on January 1, 2014.
(14) Subsection 146.4(4.3) of the Act, as enacted by subsection (11), is deemed to have come into force on March 29, 2012, except that before 2014 it is to be read as follows:
(4.3) If 2011 or 2012 is the first calendar year throughout which the beneficiary of a registered disability savings plan has no severe and prolonged impairments with the effects described in paragraph 118.3(1)(a.1) and the plan has not been terminated, then notwithstanding subparagraph (4)(p)(ii) as it read on March 28, 2012 and any terms of the plan required by that subparagraph, the plan must be terminated no later than December 31, 2014.
- Date modified: