Pooled Registered Pension Plans Regulations (SOR/2012-294)
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Regulations are current to 2024-08-18 and last amended on 2023-03-27. Previous Versions
General Requirements (continued)
Marginal note:Explanation of PRPP
24 A PRPP must provide that the explanation referred to in subparagraph 57(1)(a)(i) of the Act shall be provided on a website and, on request, directly to the member.
Marginal note:Information to be provided
25 For the purposes of subparagraph 57(1)(a)(ii) of the Act, a PRPP must provide
(a) that each member and each employer shall be given on a website and, on request, directly to the member, a description of
(i) each investment option in accordance with paragraph 23(c),
(ii) the transfer options available to the member and the costs associated with those options, and
(iii) any fees, levies and other charges that would be triggered by the member’s actions;
(b) that each member shall, if the PRPP provides for variable payments, be given a statement no more than 18 months before and no fewer than 6 months before the day on which the member reaches 55 years of age, that indicates
(i) the member’s right to elect to receive variable payments starting at 55 years of age, and
(ii) how more information in relation to variable payments may be obtained; and
(c) that each member will be given, on request, the details of any transactions that have occurred in the member’s account, including any fees, levies and other charges incurred.
Marginal note:Prescribed information — written statement
26 For the purposes of subparagraph 57(1)(b) of the Act, the written statement must show
(a) the member’s investment option;
(b) for the year, the opening balance, any contributions, the change in the investments’ value — net of costs — and the closing balance;
(c) for a member who elects to receive variable payments,
(i) the date of birth used to determine the minimum variable payment,
(ii) the date the variable payment began to be paid,
(iii) the minimum and maximum allowable variable payments as well as the variable payment that the member is to receive,
(iv) the investment options from which the variable payments were made and in what proportion they were made from each option,
(v) the payment frequency over the year,
(vi) an indication of how the member may change their election regarding the amount to be paid during the year and from which investment option the amount is to be paid, and
(vii) a list of the transfer options available under subsection 50(1) of the Act;
(d) a summary of any transactions in the year;
(e) the name and a description of the benchmark that best reflects the composition of the member’s investment option as well as an explanation of the choice of that benchmark;
(f) the performance history of the member’s investment option over 1, 3, 5 and 10 years compared to that of the benchmark;
(g) the degree of risk associated with the investment option;
(h) a statement that the investment option’s past performance is not necessarily an indication of its future performance;
(i) any costs, expressed as a percentage or a fixed amount;
(j) any fees, levies and other charges triggered by the member’s actions;
(k) the member’s and employer’s contributions; and
(l) the name of the member’s spouse or common-law partner or designated beneficiary, if any.
Marginal note:Information return — prescribed information
27 For the purposes of subsection 58(1) of the Act, an information return of a PRPP must contain
(a) a list of the investment options offered by the administrator that identifies the default option;
(b) the performance history of each investment option;
(c) any costs, expressed as a percentage or a fixed amount;
(d) a list of any fees, levies and other charges triggered by a member’s actions;
(e) a statement of the PRPP’s total assets and of the amounts held in each investment option;
(f) a statement of the asset allocation in each investment option and a list of the investments held in each investment option;
(g) the default contribution rate set by the administrator;
(h) a list of the employers who are participating in the PRPP;
(i) the number of members in the PRPP;
(j) an auditor’s report on the PRPP’s assets; and
(k) a certificate of the administrator or of any person who prepared, compiled or filed any information on their behalf that certifies that the information provided to the Superintendent is accurate.
Marginal note:Notice — termination by employer
28 The notice required under section 19 of the Act is to be provided no more than 180 days and no less than 30 days before the effective date of termination of participation in the PRPP.
Marginal note:Notice — termination by employee
29 The notice required under subsection 41(5) of the Act is to be in writing and shall include
(a) the date of the notice and the employee’s date of birth and signature; and
(b) a statement that the employee has decided to terminate their membership in the PRPP.
Marginal note:Statement on termination or death
30 For the purposes of paragraphs 57(1)(d) and (e) of the Act, the statement must provide
(a) for the current year, the opening balance, the contributions, the change in the investments’ value — net of costs — and the closing balance on the date of the termination or death;
(b) the amount of any variable payments made from the account during that year;
(c) a statement that the balance on the date of termination or death is not final and may change;
(d) a summary of any transactions in that year; and
(e) the transfer options available and information on how to transfer the funds.
Remittances
Marginal note:Employee contributions
31 An employer must remit employee contributions to the administrator no later than 30 days after the end of the period in respect of which the contributions were deducted.
Marginal note:Employer contributions
32 An employer must remit employer contributions to the administrator at least monthly and no more than 30 days after the end of the period in respect of which the amount is required to be paid under the PRPP.
Marginal note:Notice — breach of contract
33 The notice required under section 18 of the Act is to be provided no more than 60 days after the day on which the employer fails to comply with the provisions of the contract respecting the remittance of contributions.
Locking-In
Marginal note:Exceptions — s. 47 of the Act
34 The provisions of a PRPP that are required by section 47 of the Act do not apply to
(a) an account if the member who holds the account has ceased to be a resident of Canada for at least two years and is no longer employed by an employer that is participating in the PRPP; and
(b) an amount withdrawn from a member’s account where the withdrawal is required
(i) to reduce the amount of tax that would otherwise be payable by the member under Part X.1 of the Income Tax Act to the extent that the reduction cannot be achieved by a withdrawal from a registered retirement savings plan; or
(ii) to avoid the revocation of the registration of the PRPP under the Income Tax Act.
Marginal note:Disability
35 For the purposes of paragraph 47(2)(a) of the Act, disability means a mental or physical condition that a physician has certified as being likely to shorten considerably the life expectancy of a member.
Variable Payments
Marginal note:Prescribed age
36 The age of 55 years is prescribed for the purposes of section 48 of the Act as the age at which a member may elect to receive variable payments from the funds in their account.
Marginal note:Payment amount
37 (1) A member who has elected to receive variable payments may decide the amount that they are to receive as a variable payment for any calendar year.
Marginal note:Parameters
(2) The payment shall be not less than the minimum amount determined under subsection 8506(5) of the Income Tax Regulations and, for any calendar year before the year in which the member reaches 90 years of age, not more than the amount determined by the formula
C/F
where
- C
- is the balance in the member’s account
(a) at the beginning of the calendar year, or
(b) if the balance at the beginning of the calendar year is zero, on the day on which the election was made; and
- F
- is the value, at the beginning of the calendar year, of an annual $1 payment, payable on January 1 of each year between the beginning of that calendar year and December 31 of the year in which the member reaches 90 years of age, established using an interest rate that is
(a) for each of the first 15 years, not more than the monthly average yield on Government of Canada marketable bonds of maturity over 10 years, as published by the Bank of Canada, for the month of November before the beginning of the calendar year; and
(b) for any subsequent year, not more than 6%.
Marginal note:Default amount
(3) The minimum amount determined under subsection 8506(5) of the Income Tax Regulations is to be paid as a variable payment for a calendar year if
(a) a member has not notified the administrator of the amount to be paid as a variable payment for the calendar year within 90 days after the day on which the statement required under paragraph 57(1)(b) of the Act is received; or
(b) the amount determined by the formula set out in subsection (2) for that year is less than that minimum amount.
Marginal note:Amount deemed to be zero
(3.1) If, for the calendar year in which the variable payment is established, part of the account was composed of funds that had been held in a life income fund of the holder earlier in the calendar year in which the variable payment was established, the amount determined by the formula set out in subsection (2) is deemed to be zero in respect of that part of the account for that calendar year.
Marginal note:Initial year
(4) For the calendar year in which the variable payment is established, the amount to be paid is multiplied by the number of months remaining in that year and then divided by 12, with any part of an incomplete month counting as one month.
- SOR/2015-60, s. 57
- SOR/2017-145, s. 11(E)
Transfer of Funds and Purchase of Life Annuities
Marginal note:Prescribed locked-in RRSP
38 (1) A locked-in RRSP is prescribed for the purposes of 50(1)(b) and (3)(b), 53(4)(b) and 54(2)(b) of the Act if it
(a) provides that the funds may only be
(i) transferred to another locked-in RRSP,
(ii) transferred to a pension plan if the pension plan permits such a transfer and if the pension plan administers the benefit attributed to the transferred funds as if the benefit were that of a pension plan member,
(iii) transferred to a PRPP,
(iv) used to purchase an immediate life annuity or a deferred life annuity, or
(v) transferred to a life income fund or to a restricted life income fund;
(b) provides that, on the death of the holder of the locked-in RRSP, the funds shall be paid to the holder’s survivor by
(i) transferring the funds to another locked-in RRSP,
(ii) transferring the funds to a pension plan if the pension plan permits such a transfer and if the pension plan administers the benefit attributed to the transferred funds as if the benefit were that of a pension plan member,
(iii) transferring the funds to a PRPP,
(iv) using the funds to purchase an immediate life annuity or a deferred life annuity, or
(v) transferring the funds to a life income fund or to a restricted life income fund;
(c) provides that, subject to subsection 53(3) of the Act, the funds, or any interest or right in those funds, shall not be transferred, charged, attached, anticipated or given as security and that any transaction appearing to do so is void or, in Quebec, null;
(d) sets out the method of determining the value of the locked-in RRSP, including the valuation method used to establish its value on the death of the holder or on a transfer of assets;
(e) provides that the holder of the locked-in RRSP may withdraw an amount from that plan up to the lesser of the amount determined by the formula set out in subsection (2) and 50% of the Year’s Maximum Pensionable Earnings minus any amount withdrawn in the calendar year under this paragraph or paragraph 39(1)(f), 40(1)(k) or 41(1)(k)
(i) if the holder certifies that they have not made a withdrawal in the calendar year under this paragraph or paragraph 39(1)(f), 40(1)(k) or 41(1)(k) other than within the last 30 days before the day on which the certification is made,
(ii) if,
(A) in the event that the value determined for M in subsection (2) is greater than zero,
(I) the holder certifies that they expect to make expenditures on a medical or disability-related treatment or adaptive technology during the calendar year in excess of 20% of their expected income for that calendar year determined in accordance with the Income Tax Act, other than any amount withdrawn in the calendar year under this paragraph or paragraph 39(1)(f), 40(1)(k) or 41(1)(k), and
(II) a physician certifies that the medical or disability-related treatment or adaptive technology is required, or
(B) the holder’s expected income for the calendar year determined in accordance with the Income Tax Act — other than any amount withdrawn under this paragraph or paragraph 39(1)(f), 40(1)(k) or 41(1)(k) other than within the last 30 days before the day on which the certification is made — is less than 75% of the Year’s Maximum Pensionable Earnings, and
(iii) if the holder obtains the consent of their spouse or common law partner, if any and completes and gives a copy of Form 1 and Form 2 of the schedule to the financial institution with whom the contract or arrangement for the locked-in RRSP was entered into;
(f) provides that the holder of the locked-in RRSP who has ceased to be a resident of Canada for at least two years may withdraw any amount from that plan; and
(g) provides that, in the calendar year in which the holder of the locked-in RRSP reaches 55 years of age or in any subsequent calendar year, the funds may be paid to the holder in a lump sum if the holder
(i) certifies that the total value of all assets in all locked-in RRSPs, life income funds, restricted locked-in savings plans and restricted life income funds that were created as a result of the transfer, a transfer under the Pension Benefits Standards Act, 1985 or a transfer from another PRPP is not more than 50% of the Year’s Maximum Pensionable Earnings, and
(ii) obtains the consent of their spouse or common law partner, if any, and completes and gives a copy of Form 2 and Form 3 of the schedule to the financial institution with whom the contract or arrangement for the locked-in RRSP was entered into.
Marginal note:Amount
(2) The relevant amount for the purposes of paragraph (1)(e), 39(1)(f), 40(1)(k) or 41(1)(k) is the amount determined by the formula
M + N
where
- M
- is the total amount of the expenditures that the holder expects to make on the medical or disability-related treatment or adaptive technology during the calendar year; and
- N
- is the greater of zero and the amount determined by the formula
P – Q
where
- P
- is 50% of the Year’s Maximum Pensionable Earnings, and
- Q
- is two-thirds of the holder’s total expected income for the calendar year determined in accordance with the Income Tax Act, other than any amount withdrawn in the calendar year under paragraph (1)(e), 39(1)(f), 40(1)(k) or 41(1)(k).
Marginal note:Lump sum
(3) The locked-in RRSP shall provide that the funds may be paid to the holder in a lump sum if a physician certifies that, owing to mental or physical disability, the holder’s life expectancy is likely to be considerably shortened.
- SOR/2017-145, s. 12
- Date modified: