Pooled Registered Pension Plans Regulations (SOR/2012-294)

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• (b) an amount withdrawn from a member’s account where the withdrawal is required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.

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.

Marginal note:Prescribed restricted locked-in savings plan

• 39 (1) A restricted locked-in savings plan must

  • (a) provide that the funds may only be

    • (i) transferred to another restricted locked-in savings plan,

    • (ii) transferred to a pension plan if the 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 restricted life income fund;

  • (b) provide that, on the death of the holder of the restricted locked-in savings plan, the funds shall be paid to the holder’s survivor by

    • (i) transferring the funds to another restricted locked-in savings plan or to a 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) provide 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) set out the method of determining the value of the restricted locked-in savings plan, including the valuation method used to establish its value on the death of the holder or on a transfer of assets;

  • (e) provide that, in the calendar year in which the holder of the restricted locked-in savings plan 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 restricted locked-in savings plan was entered into;

  • (f) provide that the holder of the restricted locked-in savings plan may withdraw an amount from that plan up to the lesser of the amount determined by the formula set out in subsection 38(2) and 50% of the Year’s Maximum Pensionable Earnings minus any amount withdrawn in the calendar year under this paragraph or paragraph 38(1)(e), 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 38(1)(e), 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 38(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 38(1)(e), 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 38(1)(e), 40(1)(k) or 41(1)(k) 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 restricted locked-in savings plan was entered into; and

  • (g) provide that the holder of the restricted locked-in savings plan who has ceased to be a resident of Canada for at least two years may withdraw any amount from that plan.

• Marginal note:Lump sum

  (2) The restricted locked-in savings plan 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.