Pooled Registered Pension Plans Regulations

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 is to be not less than the minimum amount required 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

  A × B

  where

  A

  is, for the first calendar year, the balance in the member’s account on the day on which the variable payment arrangement is entered into and, for every subsequent calendar year, that balance at the beginning of the calendar year; and

  B

  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 each calendar year, and

  • (b) for any subsequent year, not more than 6%.

• Marginal note:Default amount

  (3) If a member has not notified the administrator of the amount to be paid as a variable payment for a calendar year within 90 days after the day on which the statement required under paragraph 57(1)(b) of the Act is received, the minimum amount determined under subsection 8506(5) of the Income Tax Regulations is to be paid as a variable payment for that 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.