Pooled Registered Pension Plans Regulations

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; and

  • (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.

• Marginal note:Lump sum

  (2) The restricted locked-in savings plan may 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.