O. Reg. 416/07: GENERAL


Published: 2007-07-27

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ontario regulation 416/07

made under the

pension benefits act

Made: July 25, 2007
Filed: July 27, 2007
Published on e-Laws: July 30, 2007
Printed in The Ontario Gazette: August 11, 2007


Amending Reg. 909 of R.R.O. 1990

(General)

1. (1) The definition of “life income fund” in subsection 1 (1) of Regulation 909 of the Revised Regulations of Ontario, 1990 is revoked and the following substituted:

“life income fund” means an RRIF that meets the requirements of either Schedule 1 or Schedule 1.1;  (“fonds de revenu viager”)

(2) Subsection 1 (1) of the Regulation is amended by adding the following definition:

“life income fund that is governed by this Schedule” means an RRIF that meets the requirements of Schedule 1 or Schedule 1.1, as the case may be; (“fonds de revenu viager régi par la présente annexe”)

2. (1) Subclause 21 (2) (a) (v) of the Regulation is amended by striking out “sections 22.2 to 22.4” at the end and substituting “sections 22.2 to 22.5”.

(2) Clause 21 (2) (d) of the Regulation is amended by striking out “sections 22.2 to 22.4” and substituting “sections 22.2 to 22.5”.

(3) Clause 21 (2) (h) of the Regulation is revoked and the following substituted:

(h) upon the death of the owner of the account, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the account.

(4) Section 21 of the Regulation is amended by adding the following subsections:

(2.2) The benefit described in clause (2) (h) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada).

(2.3) A spouse of the owner of a locked-in retirement account is not entitled under clause (2) (h) to receive the value of the assets in the account unless the owner was a member or former member of a pension plan from which assets were transferred directly or indirectly to purchase the account.

(2.4) A spouse living separate and apart from the owner of a locked-in retirement account on the date of the owner’s death is not entitled under clause (2) (h) to receive the value of the assets in the account.

(2.5) A spouse of the owner of a locked-in retirement account may waive his or her entitlement to receive the survivor’s benefit described in clause (2) (h) from the account by delivering to the financial institution a written waiver in a form approved by the Superintendent.

(2.6) A spouse who has delivered a waiver under subsection (2.5) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the account.

(2.7) For the purposes of clause (2) (h), a determination as to whether the owner of the account has a spouse is to be made on the date of the owner’s death.

(2.8) For the purposes of clause (2) (h), the value of the assets in the account includes all accumulated investment earnings, including any unrealized capital gains and losses, of the account from the date of death until the date of payment.

3. (1) Subsection 22.1 (1) of the Regulation is amended by striking out “sections 22.2 to 22.4” and substituting “sections 22.2 to 22.5”.

(2) Subsection 22.1 (2) of the Regulation is revoked and the following substituted:

(2) Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 22.3, 22.4 or 22.5 from a locked-in retirement account:

1. A statement signed by the spouse, if any, of the owner of the account that the spouse consents to the withdrawal or transfer.

2. A statement signed by the owner of the account attesting to the fact that the owner does not have a spouse.

3. A statement signed by the owner of the account attesting to the fact that the owner is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer.

(3) Subsection 22.1 (3) of the Regulation is amended by striking out “If the owner of a locked-in retirement account is required to give a document to a financial institution under section 22.3 or 22.4” at the beginning and substituting “If the owner of a locked-in retirement account is required by section 22.3, 22.4 or 22.5 to give a document to a financial institution”.

(4) Subsection 22.1 (4) of the Regulation is amended by striking out “required under section 22.3 or 22.4” and substituting “required by section 22.3, 22.4 or 22.5”.

4. (1) Paragraph 2 of subsection 22.2 (8) of the Regulation is amended by striking out “to pay money to the owner” and substituting “to make the payment”.

(2) Paragraph 3 of subsection 22.2 (8) of the Regulation is amended by striking out “the payments” and substituting “the payment”.

5. (1) Subsections 22.3 (1) and (2) of the Regulation are revoked and the following substituted:

(1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all the money in the account or transfer the assets to an RRSP or RRIF if, when the owner signs the application,

(a) he or she is at least 55 years of age; and

(b) the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year.

(2) An application for the withdrawal or transfer from the account must be given to the financial institution that administers the account.

(2) Subsection 22.3 (5) of the Regulation is revoked and the following substituted:

(5) If assets in the account consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(6) The contract governing the account must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the account in accordance with this section.

3. The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application.

4. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

6. (1) Paragraph 2 of subsection 22.4 (5) of the Regulation is amended by striking out “to pay money to the owner from the account” and substituting “to make the payment from the account”.

(2) Paragraph 3 of subsection 22.4 (5) of the Regulation is amended by striking out “the payments” and substituting “the payment”.

7. The Regulation is amended by adding the following section:

22.5 (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all the money in the account,

(a) if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act

(Canada); and

(b) if the application is made at least 24 months after his or her date of departure from Canada.

(2) An application to withdraw the money from the account must be given to the financial institution that administers the account.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by the following documents:

1. A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the Income Tax Act (Canada).

2. Either a declaration described in subsection 22.1 (2) about a spouse or a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the account must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the account in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

8. Subsection 89 (3) of the Regulation is amended by adding the following clause:

(d.1) the payment of an Ontario child benefit under section 8.6.2 of the Income Tax Act

or under section 104 of the Taxation Act, 2007;

9. (1) The title to Schedule 1 to the Regulation is revoked and the following substituted:

schedule 1
life income funds governed by this schedule

(2) Subsection 1 (1) of Schedule 1 to the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:

(1) The following persons may purchase, in accordance with this section, a life income fund that is governed by this Schedule:

. . . . .

(3) Section 1 of Schedule 1 to the Regulation, as amended by subsection (2), is revoked and the following substituted:

1. (1) A life income fund that is governed by this Schedule cannot be purchased after December 31, 2008.

(2) After December 31, 2008, money cannot be transferred into a life income fund that is governed by this Schedule from a pension fund, another life income fund, a locked-in retirement account, a locked-in retirement income fund or a life annuity that meets the requirements of section 22 of this Regulation.

(4) Subsection 2 (1) of Schedule 1 to the Regulation is amended by striking out “a life income fund” and substituting “a life income fund that is governed by this Schedule”.

(5) The French version of subsection 2 (3) of Schedule 1 to the Regulation is amended by striking out “les placements de l'actif du fonds” at the end and substituting “le placement de l'actif du fonds”.

(6) Subsection 2 (4) of Schedule 1 to the Regulation is amended by striking out “a life income fund” and substituting “the fund”.

(7) Subsection 3 (1) of Schedule 1 to the Regulation is amended by striking out “a life income fund” and substituting “a life income fund that is governed by this Schedule”.

(8) Subsection 3 (2) of Schedule 1 to the Regulation is amended by striking out “a life income fund” and substituting “a life income fund that is governed by this Schedule”.

(9) Section 4 of Schedule 1 to the Regulation is amended by striking out “a life income fund” and substituting “a life income fund that is governed by this Schedule”.

(10) Subsection 5 (1) of Schedule 1 to the Regulation is amended by striking out “the life income fund” and substituting “a life income fund that is governed by this Schedule”.

(11) Subsection 6 (1) of Schedule 1 to the Regulation is amended by striking out “paid out of the life income fund during a fiscal year” in the portion before the formula and substituting “paid during a fiscal year out of a life income fund that is governed by this Schedule”.

(12) Paragraph 1 of subsection 6 (2) of Schedule 1 to the Regulation is revoked.

(13) Paragraph 2 of subsection 6 (2) of Schedule 1 to the Regulation is amended by striking out “If the fiscal year begins on or after January 1, 2001” at the beginning.

(14) Subsection 6 (3) of Schedule 1 to the Regulation is amended by striking out “another life income fund” and substituting “another life income fund that is governed by this Schedule”.

(15) Subsection 6 (7) of Schedule 1 to the Regulation is amended by striking out “section 3, 9 or 10” and substituting “section 3, 9, 9.1 or 10”.

(16) Subsection 7 (1) of Schedule 1 to the Regulation is amended by striking out “a life income fund” in the portion before clause (a) and substituting “a life income fund that is governed by this Schedule”.

(17) Clauses 7 (1) (a) and (b) of Schedule 1 to the Regulation are revoked and the following substituted:

(a) to a life income fund that is governed by Schedule 1.1;

(18) Clause 7 (1) (d) of Schedule 1 to the Regulation is amended by striking out “69 years of age” and substituting “71 years of age”.

(19) Subsection 7 (1) of Schedule 1 to the Regulation is amended by striking out “or” at the end of clause (c) and by adding the following clauses:

(e) before January 1, 2009 to a locked-in retirement income fund; or

(f) before January 1, 2009 to another life income fund that is governed by this Schedule.

(20) Section 7 of Schedule 1 to the Regulation is amended by adding the following subsections:

(1.1) For the purposes of the life annuity referred to in clause (1) (c), a determination as to whether the owner has a spouse is to be made on the date the annuity is purchased.

(1.2) Payments under a life annuity referred to in clause (1) (c) are subject to division in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

(21) Section 8 of Schedule 1 to the Regulation is revoked.

(22) Subsections 9 (1) and (2) of Schedule 1 to the Regulation are revoked and the following substituted:

(1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all the money in the fund or transfer the assets to an RRSP or RRIF if, when the owner signs the application,

(a) he or she is at least 55 years of age; and

(b) the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year.

(2) An application for the withdrawal or transfer from the fund must be given to the financial institution that administers the fund.

(23) Subsection 9 (5) of Schedule 1 to the Regulation is revoked and the following substituted:

(5) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(6) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application.

4. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

(24) Schedule 1 to the Regulation is amended by adding the following section:

9.1 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all the money in the fund,

(a) if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act

(Canada); and

(b) if the application is made at least 24 months after his or her date of departure from Canada.

(2) An application to withdraw the money from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by the following documents:

1. A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the Income Tax Act (Canada).

2. Either a declaration described in section 11 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the fund in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

(25) Subsection 10 (1) of Schedule 1 to the Regulation is revoked and the following substituted:

(1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if, when the owner signs the application, he or she has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

(26) Paragraph 2 of subsection 10 (5) of Schedule 1 to the Regulation is amended by striking out “to pay money to the owner from the fund” and substituting “to make the payment from the fund”.

(27) Paragraph 3 of subsection 10 (5) of Schedule 1 to the Regulation is amended by striking out “the payments” and substituting “the payment”.

(28) Section 11 of Schedule 1 to the Regulation is revoked and the following substituted:

11. Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 9, 9.1 or 10 from a life income fund that is governed by this Schedule:

1. A

statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal or transfer from the fund.

2. A

statement signed by the owner attesting to the fact that he or she does not have a spouse.

3. A

statement signed by the owner attesting to the fact that he or she is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer from the fund.

(29) Subsection 12 (1) of Schedule 1 to the Regulation is amended by striking out “If the owner of a life income fund is required to give a document to a financial institution under section 9 or 10” at the beginning and substituting “If the owner of a life income fund that is governed by this Schedule is required by section 9, 9.1 or 10 to give a document to a financial institution”.

(30) Subsection 12 (2) of Schedule 1 to the Regulation is amended by striking out “required under section 9 or 10” and substituting “required by section 9, 9.1 or 10”.

(31) Subsection 13 (1) of Schedule 1 to the Regulation is revoked and the following substituted:

(1) Upon the death of the owner of a life income fund that is governed by this Schedule, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the fund.

(1.1) The benefit described in subsection (1) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada).

(32) Section 13 of Schedule 1 to the Regulation is amended by adding the following subsection:

(5) For the purposes of subsection (1), the value of the assets in the fund includes all accumulated investment earnings, including any unrealized capital gains and losses, of the fund from the date of death until the date of payment.

(33) Schedule 1 to the Regulation is amended by adding the following section:

13.1 (1) A spouse of the owner of a life income fund that is governed by this Schedule may waive his or her entitlement to receive the survivor’s benefit described in section 13 from the fund by delivering to the financial institution a written waiver in a form approved by the Superintendent.

(2) A spouse who has delivered a waiver under subsection (1) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the fund.

(34) Subsection 14 (1) of Schedule 1 to the Regulation is amended by striking out “a life income fund” and substituting “a life income fund that is governed by this Schedule”.

(35) Subsection 15 (1) of Schedule 1 to the Regulation is amended by striking out “a life income fund” and substituting “a life income fund that is governed by this Schedule”.

(36) Paragraph 1 of subsection 15 (2) of Schedule 1 to the Regulation is revoked and the following substituted:

1. With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings including any unrealized capital gains or losses, the payments made out of the fund and the fees charged against the fund.

10. The Regulation is amended by adding the following Schedule:

schedule 1.1
life income funds governed by this schedule

Establishing the Fund

1. (1) The following persons may purchase, in accordance with this section, a life income fund that is governed by this Schedule:

1. A former member who is entitled to make a transfer under clause 42 (1) (b) of the Act.

2. A

spouse or former spouse of a person who was a member who is entitled to make a transfer under clause 42 (1) (b) of the Act.

3. A person who has previously transferred an amount under clause 42 (1) (b) of the Act into a life income fund, a locked-in retirement account or a locked-in retirement income fund.

(2) The fund must be purchased using all or part of the amount transferred under clause 42 (1) (b) of the Act, or using all or part of the assets in a life income fund, a locked-in retirement account or a locked-in retirement income fund.

(3) The purchaser must have the written consent of his or her spouse in order to make the purchase but,

(a) the consent of a spouse who is living separate and apart from the purchaser on the date of purchase is not required; and

(b) the consent of a spouse is not required if none of the money to be transferred into the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the purchaser.

2. (1) A contract establishing a life income fund that is governed by this Schedule must provide for the matters described in this section.

(2) It must indicate the name and address of the financial institution providing the fund.

(3) It must describe the owner’s powers, if any, respecting investment of the assets in the fund.

(4) It must state that the owner agrees not to assign, charge, anticipate or give as security money payable under the fund except as required by an order under the Family Law Act or by a domestic contract as defined in Part IV of that Act.

(5) It must describe the method for determining the value of the assets in the fund.

3. (1) Money in a life income fund that is governed by this Schedule cannot be commuted, withdrawn or surrendered in whole or in part, except as permitted by section 49 or 67 of the Act, section 22.2 of this Regulation or this Schedule.

(2) Every contract establishing a life income fund that is governed by this Schedule is deemed to include a provision setting out the restriction described in subsection (1).

4. The fiscal year of a life income fund that is governed by this Schedule must end on December 31 and must not exceed 12 months.

Periodic Payments out of the Fund

5. (1) Payments out of a life income fund that is governed by this Schedule must begin no earlier than the earliest date on which the former member is entitled to receive a pension under any pension plan from which money was transferred into the fund directly or indirectly.

(2) Payments out of the fund must begin no later than the end of the second fiscal year of the fund.

(3) The owner must notify the financial institution of the amount to be paid out of the fund each year.  If the owner does not do so, the minimum amount determined under section 6 must be paid out of the fund that year.

(4) The notice respecting the amount to be paid out of the fund must be given either at the beginning of the fiscal year of the fund or at another time agreed to by the financial institution.

(5) The notice expires at the end of the fiscal year to which it relates.

(6) The value of the assets in the fund and payments out of the fund are subject to division in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

6. (1) The amount of income paid during a fiscal year out of a life income fund that is governed by this Schedule must not exceed the greatest of the following amounts:

1. The investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year.

2. If the money in the fund (the “receiving fund”) is derived from money transferred directly from another life income fund or a locked-in retirement income fund (the “transferring fund”), and if the income is being paid out of the receiving fund in the fiscal year following the fiscal year in which the receiving fund is established, the sum of,

i. the investment earnings, including any unrealized capital gains or losses, of the transferring fund in the previous fiscal year, and

ii. the investment earnings, including any unrealized capital gains or losses, of the receiving fund in the previous fiscal year.

3. The amount calculated using the formula,



in which,

“C” is the value of the assets in the fund at the beginning of the fiscal year, and

 “F” is the present value, at the beginning of the fiscal year, of an annuity of $1 payable annually in advance over the period commencing at the beginning of the fiscal year and ending on December 31 of the year in which the owner reaches 90 years of age.

(2) The following interest rate assumptions are to be used to determine the amount “F” in subsection (1):

1. The interest rate for each of the first 15 fiscal years of the period referred to in the definition of “F” is the greater of 6 per cent and the nominal rate of interest on long-term bonds issued by the Government of Canada for November of the year before the beginning of the fiscal year, as determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122487 compiled by Statistics Canada and available on the website maintained by the Bank of Canada.

2. For the sixteenth and each subsequent fiscal year of the period referred to in the definition of “F”, the interest rate is 6 per cent.

(3) Despite subsection (1), if any money in the fund is derived from money transferred directly or indirectly from another life income fund or a locked-in retirement income fund, the maximum amount that may be paid out of the fund in the fiscal year in which the money is transferred into the fund is zero.

(4) If the initial fiscal year of the fund is not 12 months long, the maximum amount determined under subsection (1) shall be adjusted in proportion to the number of months in that fiscal year divided by 12, with any part of an incomplete month counting as one month.

(5) The amount of income paid out of the fund during a fiscal year must not be less than the minimum amount prescribed for an RRIF under the Income Tax Act (Canada).

(6) If the minimum amount specified by subsection (5) is greater than the maximum amount determined under subsection (1), (3) or (4), the minimum amount must be paid out of the fund during the fiscal year.

(7) This section shall not be construed to prevent or limit a payment from the fund that is permitted under section 3, 8, 9, 10 or 11 of this Schedule or under section 22.2 of this Regulation.

Transferring Assets from the Fund

7. (1) The owner of a life income fund that is governed by this Schedule may transfer any or all of the assets in it either to another life income fund that is governed by this Schedule or to purchase an immediate life annuity that meets the requirements of section 22 of this Regulation.

(2) In the contract governing the fund, the financial institution must agree to make such a transfer within 30 days after the owner requests it.  This does not apply with respect to the transfer of assets held as securities whose term of investment extends beyond the 30-day period.

(3) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(4) For the purposes of the purchase of an immediate life annuity referred to in subsection (1), a determination as to whether the owner has a spouse is to be made on the date the annuity is purchased.

(5) Payments under a life annuity are subject to division in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

Withdrawals from the Fund

8. (1) This section applies if assets are transferred into a life income fund that is governed by this Schedule (the “receiving fund”) from a pension fund, a locked-in retirement account, a locked-in retirement income fund or another life income fund.

(2) The owner of the receiving fund may, upon application in accordance with this section, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 25 per cent of the total market value of the assets transferred into the fund.

(3) Despite subsection (2), if the assets are transferred into the receiving fund from another life income fund that is governed by this Schedule, the owner cannot make a withdrawal or transfer described in subsection (2) unless the transfer into the receiving fund was made in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

(4) An application for a withdrawal or transfer described in subsection (2) must be given to the financial institution that administers the receiving fund within 60 days after the assets are transferred into the fund.

(5) The application must be made on a form approved by the Superintendent.

(6) The application form must be signed by the owner and accompanied by one of the following documents:

1. A declaration described in section 12 about a spouse.

2. A statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(7) If assets in the receiving fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(8) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

9. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all the money in the fund or transfer the assets to an RRSP or RRIF if, when the owner signs the application,

(a) he or she is at least 55 years of age; and

(b) the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year.

(2) An application for the withdrawal or transfer from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by one of the following documents:

1. A declaration described in section 12 about a spouse.

2. A statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(6) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application.

4. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying document.

10. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all the money in the fund,

(a) if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act

(Canada); and

(b) if the application is made at least 24 months after his or her date of departure from Canada.

(2) An application to withdraw the money from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by the following documents:

1. A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the Income Tax Act (Canada).

2. Either a declaration described in section 12 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the fund in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

11. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if, when the owner signs the application, he or she has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

(2) An application to withdraw money from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and be accompanied by the following documents:

1. A

statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the owner has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years.

2. Either a declaration described in section 12 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the fund in accordance with this section.

 3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

12. Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 8, 9, 10 or 11 from a life income fund that is governed by this Schedule:

1. A

statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal or transfer from the fund.

2. A

statement signed by the owner attesting to the fact that he or she does not have a spouse.

3. A

statement signed by the owner attesting to the fact that he or she is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer from the fund.

13. (1) If the owner of a life income fund that is governed by this Schedule is required by section 8, 9, 10 or 11 to give a document to a financial institution and if the document is one that must be signed by the owner or by his or her spouse, the document is a nullity if it is signed by the owner or the spouse more than 60 days before the financial institution receives it.

(2) When the financial institution receives a document required by section 8, 9, 10 or 11, the financial institution shall give the owner of the life income fund a receipt for the document stating the date on which it was received.

Survivor’s Benefits

14. (1) Upon the death of the owner of a life income fund that is governed by this Schedule, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the fund.

(2) The benefit described in subsection (1) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada).

(3) A spouse of the owner is not entitled to receive the value of the assets in the fund unless the owner was a member or former member of a pension plan from which assets were transferred directly or indirectly to purchase the fund.

(4) A spouse who is living separate and apart from the owner on the date of the owner’s death is not entitled to receive the value of the assets in the fund.

(5) For the purposes of subsection (1), a determination as to whether the owner has a spouse is to be made on the date of the owner’s death.

(6) For the purposes of subsection (1), the value of the assets in the fund includes all accumulated investment earnings, including any unrealized capital gains and losses, of the fund from the date of death until the date of payment.

15. (1) A spouse of the owner of a life income fund that is governed by this Schedule may waive his or her entitlement to receive the survivor’s benefit described in section 14 from the fund by delivering to the financial institution a written waiver in a form approved by the Superintendent.

(2) A spouse who has delivered a waiver under subsection (1) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the fund.

Amending the Fund

16. (1) In the contract governing a life income fund that is governed by this Schedule, the financial institution providing the fund must agree not to amend the contract except as provided in this section.

(2) The financial institution must give the owner of the fund at least 90 days notice of a proposed amendment, other than an amendment described in subsection (3).

(3) The financial institution must not amend the contract governing the fund if the amendment would result in a reduction in the owner’s rights under the contract unless,

(a) the financial institution is required by law to make the amendment; and

(b) the owner is entitled to transfer the assets in the fund under the terms of the contract that exist before the amendment is made.

(4) When making an amendment described in subsection (3), the financial institution must notify the owner of the fund of the nature of the amendment and allow the owner at least 90 days after the notice is given to transfer all or part of the assets in the fund.

(5) Notices under this section must be sent by registered mail to the owner’s address as set out in the records of the financial institution.

Information to be Provided by the Financial Institution

17. (1) In the contract governing a life income fund that is governed by this Schedule, the financial institution must agree to provide the information described in this section to the person indicated.

(2) At the beginning of each fiscal year, the following information must be provided to the owner:

1. With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings including any unrealized capital gains or losses, the payments made out of the fund and the fees charged against the fund.

2. The value of the assets in the fund as of the beginning of the fiscal year.

3. The minimum amount that must be paid out of the fund to the owner during the current fiscal year.

4. The maximum amount that may be paid out of the fund to the owner during the current fiscal year.

(3) If the assets in the fund are transferred as described in subsection 7 (1), the owner must be given the information described in subsection (2) determined as of the date of the transfer.

(4) Upon the death of the owner, the person entitled to receive the assets in the fund must be given the information described in subsection (2) determined as of the date of the owner’s death.

11. (1) Section 1 of Schedule 2 to the Regulation is revoked and the following substituted:

1. (1) A locked-in retirement income fund cannot be purchased after December 31, 2008.

(2) After December 31, 2008, money cannot be transferred into a locked-in retirement income fund from a pension fund, another locked-in retirement income fund, a life income fund, a locked-in retirement account or a life annuity that meets the requirements of section 22 of this Regulation.

(2) The French version of subsection 2 (3) of Schedule 2 to the Regulation is amended by striking out “les placements de l'actif du fonds” at the end and substituting “le placement de l'actif du fonds”.

(3) Subsection 2 (4) of Schedule 2 to the Regulation is amended by striking out “a locked-in retirement income fund” and substituting “the fund”.

(4) Subsection 6 (8) of Schedule 2 to the Regulation is amended by striking out “section 3, 8 or 9” and substituting “section 3, 8, 8.1 or 9”.

(5) Clauses 7 (1) (a) and (b) of Schedule 2 to the Regulation are revoked and the following substituted:

(a) to a life income fund that is governed by Schedule 1.1;

(6) Clause 7 (1) (d) of Schedule 2 to the Regulation is amended by striking out “69 years of age” and substituting “71 years of age”.

(7) Subsection 7 (1) of Schedule 2 to the Regulation is amended by striking out “or” at the end of clause (c) and by adding the following clauses:

(e) before January 1, 2009 to a life income fund that is governed by Schedule 1; or

(f) before January 1, 2009 to another locked-in retirement income fund.

(8) Section 7 of Schedule 2 to the Regulation is amended by adding the following subsections:

(1.1) For the purposes of the life annuity referred to in clause (1) (c), a determination as to whether the owner has a spouse is to be made on the date the annuity is purchased.

(1.2) Payments under a life annuity referred to in clause (1) (c) are subject to division in accordance with the terms of an order under the Family Law Act or a domestic contract as defined in Part IV of that Act.

(9) Subsections 8 (1) and (2) of Schedule 2 to the Regulation are revoked and the following substituted:

(1) The owner of a locked-in retirement income fund may, upon application in accordance with this section, withdraw all the money in the fund or transfer the assets to an RRSP or RRIF if, when the owner signs the application,

(a) he or she is at least 55 years of age; and

(b) the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year.

(2) An application for the withdrawal or transfer from the fund must be given to the financial institution that administers the fund.

(10) Subsection 8 (5) of Schedule 2 to the Regulation is revoked and the following substituted:

(5) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner.

(6) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with this section.

3. The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application.

4. The financial institution is required to make the payment or transfer to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying document.

(11) Schedule 2 to the Regulation is amended by adding the following section:

8.1 (1) The owner of a locked-in retirement income fund may, upon application in accordance with this section, withdraw all the money in the fund,

(a) if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act

(Canada); and

(b) if the application is made at least 24 months after his or her date of departure from Canada.

(2) An application to withdraw the money from the fund must be given to the financial institution that administers the fund.

(3) The application must be made on a form approved by the Superintendent.

(4) The application form must be signed by the owner and accompanied by the following documents:

1. A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the Income Tax Act (Canada).

2. Either a declaration described in section 10 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(5) The contract governing the fund must include the following terms and, if it does not, the contract is deemed to include them:

1. The financial institution is entitled to rely upon the information provided by the owner in an application made under this section.

2. An application that meets the requirements of this section constitutes authorization to the financial institution to make the payment from the fund in accordance with this section.

3. The financial institution is required to make the payment to which the owner is entitled under this section within 30 days after the financial institution receives the completed application form and accompanying documents.

(12) Paragraph 2 of subsection 9 (5) of Schedule 2 to the Regulation is amended by striking out “to pay money to the owner from the fund” and substituting “to make the payment from the fund”.

(13) Paragraph 3 of subsection 9 (5) of Schedule 2 to the Regulation is amended by striking out “the payments” and substituting “the payment”.

(14) Section 10 of Schedule 2 to the Regulation is revoked and the following substituted:

10. Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 8, 8.1 or 9 from a locked-in retirement income fund:

1. A

statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal or transfer from the fund.

2. A

statement signed by the owner attesting to the fact that he or she does not have a spouse.

3. A

statement signed by the owner attesting to the fact that he or she is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer from the fund.

(15) Subsection 11 (1) of Schedule 2 to the Regulation is amended by striking out “If the owner of a locked-in retirement income fund is required to give a document to a financial institution under section 8 or 9” at the beginning and substituting “If the owner of a locked-in retirement income fund is required by section 8, 8.1 or 9 to give a document to a financial institution”.

(16) Subsection 11 (2) of Schedule 2 to the Regulation is amended by striking out “required under section 8 or 9” and substituting “required by section 8, 8.1 or 9”.

(17) Subsection 12 (1) of Schedule 2 to the Regulation is amended by striking out “the owner’s spouse or, if there is none” and substituting “the owner’s spouse or, if there is none or if the spouse is otherwise disentitled”.

(18) Section 12 of Schedule 2 to the Regulation is amended by adding the following subsections:

(1.1) The benefit described in subsection (1) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada).

. . . . .

(5) For the purposes of subsection (1), the value of the assets in the fund includes all accumulated investment earnings, including any unrealized capital gains and losses, of the fund from the date of death until the date of payment.

(19) Schedule 2 to the Regulation is amended by adding the following section:

12.1 (1) A spouse of the owner of a locked-in retirement income fund may waive his or her entitlement to receive the survivor’s benefit described in section 12 from the fund by delivering to the financial institution a written waiver in a form approved by the Superintendent.

(2) A spouse who has delivered a waiver under subsection (1) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the fund.

(20) Paragraph 1 of subsection 14 (2) of Schedule 2 to the Regulation is revoked and the following substituted:

1. With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings including any unrealized capital gains or losses, the payments made out of the fund and the fees charged against the fund.

12. (1) Subject to subsections (2) and (3), this Regulation comes into force on the day it is filed.

(2) The following provisions come into force on January 1, 2008:

1. Section 1.

2. Sections 2, 3, 5 and 7.

3. Subsections 9 (1), (2), (4), (6) to (17), (19), (22) to (25) and (28) to (36).

4. Section 10.

5. Subsections 11 (3) to (5), (7), (9) to (11) and (14) to (20).

(3) Subsections 9 (3) and 11 (1) come into force on January 1, 2009.

 

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