O. Reg. 185/13: GENERAL

Link to law: http://www.ontario.ca/laws/regulation/r13185
Published: 2013-06-20

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ontario regulation 185/13

made under the

pension benefits act

Made: June 19, 2013
Filed: June 20, 2013
Published on e-Laws: June 21, 2013
Printed in The Ontario Gazette: July 6, 2013


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

(general)

1. Regulation 909 of the Revised Regulations of Ontario, 1990 is amended by adding the following section:

Commutation or Surrender of Prescribed Retirement Savings Arrangements

22.3 The following prescribed retirement savings arrangements are prescribed for the purposes of subsection 67 (4) of the Act:

1. A life income fund.

2. A locked-in retirement account.

3. A locked-in retirement income fund.

2. Part III (sections 83 to 89) of the Regulation is revoked.

3. (1) Subsection 6 (5) of Schedule 1 to the Regulation is amended by striking out “section 3, 8, 9, 9.1 or 10” and substituting “section 3, 9, 9.1, 10, 10.1, 10.2, 10.3 or 10.4”.

(2) Section 8 of Schedule 1 to the Regulation is revoked and the following substituted:

8. (1) An application under section 9, 9.1, 10, 10.1, 10.2, 10.3 or 10.4 to withdraw money or transfer assets from a life income fund that is governed by this Schedule must be made on a form approved by the Superintendent and must be given to the financial institution that administers the fund.

(2) The contract governing a life income fund that is governed by this Schedule 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 the application to withdraw money or transfer assets from the fund under section 9, 9.1, 10, 10.1, 10.2, 10.3 or 10.4, as the case may be.

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

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

(3) Subsections 9 (2) and (3) of Schedule 1 to the Regulation are revoked.

(4) Subsection 9 (6) of Schedule 1 to the Regulation is revoked and the following substituted:

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

1. 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.

(5) Subsections 9.1 (2), (3) and (5) of Schedule 1 to the Regulation are revoked.

(6) Subsections 10 (2), (3) and (5) of Schedule 1 to the Regulation are revoked.

(7) Schedule 1 to the Regulation is amended by adding the following sections:

10.1 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if the owner, his or her spouse, or a dependant has incurred or will incur medical expenses relating to an illness or physical disability of any of them.

(2) Only one application may be made under this section during a calendar year in respect of a particular person.

(3) The application must specify the amount to be withdrawn from the fund.

(4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “X” and “G” where,

  “X” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “G” is the sum of the amount of the person’s medical expenses that have been incurred and an estimate of the total amount of the person’s medical expenses for the 12 months after the date on which the application is signed.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application.

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

1. 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.

2. A statement signed by a physician or dentist, as applicable, indicating that, in his or her opinion, the expenses claimed are or were necessary for the person’s treatment.  The physician or dentist must be licensed to practise medicine or dentistry, as the case may be, in a jurisdiction in Canada.

3. A copy of the receipts or the estimate to account for the total amount of the medical expenses being claimed.

4. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) For the purposes of this section, a person is a dependant if he or she was dependent on the owner or the owner’s spouse for support at some time during the calendar year in which the application is signed or during the previous calendar year.

(8) For the purposes of this section, medical expenses include,

(a) expenses for goods and services of a medical or dental nature; and

(b) expenses incurred or to be incurred for renovations or alterations to the owner’s or the dependant’s principal residence (as defined in subsection 10.2 (7)) and any additional expenses incurred in the construction of a principal residence made necessary by the illness or physical disability of the owner, his or her spouse or a dependant.

10.2 (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,

(a) if the owner or his or her spouse has received a written demand in respect of arrears in the payment of rent on the owner’s principal residence, and the owner could face eviction if the debt remains unpaid; or

(b) if the owner or his or her spouse has received a written demand in respect of a default on a debt that is secured against the owner’s principal residence, and the owner could face eviction if the amount in default remains unpaid.

(2) Only one application may be made under this section during a calendar year.

(3) The application must specify the amount to be withdrawn from the fund.

(4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “X” and “H” where,

  “X” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “H” is, with respect to arrears in the payment of rent, the sum of the total amount of arrears of rent and the total amount of rent payable for a period of 12 months or, with respect to a default on a secured debt, the sum of the total amount of the payments that are in default and the total amount of payments due and interest payable on the debt for the 12 months after the date on which the application is signed.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application.

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

1. 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.

2. A copy of the written demand in respect of arrears in the payment of rent or in respect of the default on the secured debt, as the case may be.

3. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) In this section,

“principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is occupied by the individual as his or her primary place of residence.

10.3 (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 the owner or his or her spouse requires money to pay the first and last months’ rent to obtain a principal residence for the owner.

(2) Only one application may be made under this section during a calendar year.

(3) The application must specify the amount to be withdrawn from the fund.

(4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “J” and “K” where,

“J” is 5 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “K” is the amount required for the first and last months’ rent.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application.

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

1. 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.

2. A copy of the rental agreement, if available.

3. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) In this section,

“principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is intended to be occupied by the individual as his or her primary place of residence.

10.4 (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 the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed is 66 2/3 per cent or less of the Year’s Maximum Pensionable Earnings for the year in which the application is signed.

(2) Only one application may be made under this section during a calendar year.

(3) The application must specify the amount to be withdrawn from the fund.

(4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is calculated using the formula,

X − L

in which,

  “X” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “L” is 75 per cent of the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application.

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

1. 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.

2. A statement, signed by the owner, setting out the amount of his or her expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed.

3. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) For the purposes of this section, an owner’s expected total income from all sources, before taxes, does not include,

(a) a withdrawal under this section;

(b) a refund or repayment of taxes paid to a Canadian jurisdiction;

(c) a refundable tax credit;

(d) a refund of tax paid under the Ontario Child Care Supplement for Working Families program under section 8.5 of the Income Tax Act;

(e) 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;

(f) a payment received by a foster parent under the Child and Family Services Act; or

(g) child support payments received under a court order or an agreement.

(8) Section 11 of Schedule 1 to the Regulation is amended by striking out “section 8, 9, 9.1 or 10” in the portion before paragraph 1 and substituting “section 9, 9.1, 10, 10.1, 10.2, 10.3 or 10.4”.

(9) Subsection 12 (1) of Schedule 1 to the Regulation is revoked and the following substituted:

(1) If the owner of a life income fund that is governed by this Schedule is required by section 9, 9.1, 10, 10.1, 10.2, 10.3 or 10.4 to give a document to a financial institution, the document is a nullity in the following circumstances:

1. If the document is one that must be signed by the owner or by his or her spouse, it is a nullity if it is signed by either of them more than 60 days before the financial institution receives it.

2. In any other case, if the document is required by section 10.1, 10.2, 10.3 or 10.4, it is a nullity if it is signed or dated more than 12 months before the financial institution receives it.

(10) Subsection 12 (2) of Schedule 1 to the Regulation is amended by striking out “section 8, 9, 9.1 or 10” and substituting “section 9, 9.1, 10, 10.1, 10.2, 10.3 or 10.4”.

(11) Subsection 15 (5) of Schedule 1 to the Regulation is revoked.

4. (1) Subsection 6 (7) of Schedule 1.1 to the Regulation is amended by striking out “section 3, 8, 9, 10 or 11” and substituting “section 3, 8, 9, 10, 11, 11.1, 11.2, 11.3 or 11.4”.

(2) Schedule 1.1 to the Regulation is amended by adding the following section after the heading “Withdrawals from the Fund”:

7.1 (1) An application under section 8, 9, 10, 11, 11.1, 11.2, 11.3 or 11.4 to withdraw money or transfer assets from a life income fund that is governed by this Schedule must be made on a form approved by the Superintendent and must be given to the financial institution that administers the fund.

(2) The contract governing a life income fund that is governed by this Schedule 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 the application to withdraw money or transfer assets from the fund under section 8, 9, 10, 11, 11.1, 11.2, 11.3 or 11.4, as the case may be.

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

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

(3) Subsection 8 (2) of Schedule 1.1 to the Regulation is revoked.

(4) Subsection 8 (3) of Schedule 1.1 to the Regulation is amended,

(a) by striking out “Despite subsections (2) and (2.1)” at the beginning and substituting “Despite subsection (2.1)”; and

(b) by striking out “described in subsection (2) or (2.1)” and substituting “described in subsection (2.1)”.

(5) Subsection 8 (4) of Schedule 1.1 to the Regulation is amended by striking out “described in subsection (2) or (2.1)” and substituting “described in subsection (2.1)”.

(6) Subsection 8 (5) of Schedule 1.1 to the Regulation is revoked.

(7) Subsection 8 (8) of Schedule 1.1 to the Regulation is revoked and the following substituted:

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

1. The total market value of the assets transferred into the fund is to be determined as of the date the assets were transferred into the fund.

(8) Section 8.1 of Schedule 1.1 to the Regulation is revoked.

(9) Subsections 9 (2) and (3) of Schedule 1.1 to the Regulation are revoked.

(10) Subsection 9 (6) of Schedule 1.1 to the Regulation is revoked and the following substituted:

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

1. 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.

(11) Subsections 10 (2), (3) and (5) of Schedule 1.1 to the Regulation are revoked.

(12) Subsections 11 (2), (3) and (5) of Schedule 1.1 to the Regulation are revoked.

(13) Schedule 1.1 to the Regulation is amended by adding the following sections:

11.1 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if the owner, his or her spouse, or a dependant has incurred or will incur medical expenses relating to an illness or physical disability of any of them.

(2) Only one application may be made under this section during a calendar year in respect of a particular person.

(3) The application must specify the amount to be withdrawn from the fund.

(4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “X” and “G” where,

  “X” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “G” is the sum of the amount of the person’s medical expenses that have been incurred and an estimate of the total amount of the person’s medical expenses for the 12 months after the date on which the application is signed.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application.

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

1. 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.

2. A statement signed by a physician or dentist, as applicable, indicating that, in his or her opinion, the expenses claimed are or were necessary for the person’s treatment.  The physician or dentist must be licensed to practise medicine or dentistry, as the case may be, in a jurisdiction in Canada.

3. A copy of the receipts or the estimate to account for the total amount of the medical expenses being claimed.

4. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) For the purposes of this section, a person is a dependant if he or she was dependent on the owner or the owner’s spouse for support at some time during the calendar year in which the application is signed or during the previous calendar year.

(8) For the purposes of this section, medical expenses include,

(a) expenses for goods and services of a medical or dental nature; and

(b) expenses incurred or to be incurred for renovations or alterations to the owner’s or the dependant’s principal residence (as defined in subsection 11.2 (7)) and any additional expenses incurred in the construction of a principal residence made necessary by the illness or physical disability of the owner, his or her spouse or a dependant.

11.2 (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,

(a) if the owner or his or her spouse has received a written demand in respect of arrears in the payment of rent on the owner’s principal residence, and the owner could face eviction if the debt remains unpaid; or

(b) if the owner or his or her spouse has received a written demand in respect of a default on a debt that is secured against the owner’s principal residence, and the owner could face eviction if the amount in default remains unpaid.

(2) Only one application may be made under this section during a calendar year.

(3) The application must specify the amount to be withdrawn from the fund.

(4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “X” and “H” where,

  “X” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “H” is, with respect to arrears in the payment of rent, the sum of the total amount of arrears of rent and the total amount of rent payable for a period of 12 months or, with respect to a default on a secured debt, the sum of the total amount of the payments that are in default and the total amount of payments due and interest payable on the debt for the 12 months after the date on which the application is signed.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application.

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

1. 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.

2. A copy of the written demand in respect of arrears in the payment of rent or in respect of the default on the secured debt, as the case may be.

3. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) In this section,

“principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is occupied by the individual as his or her primary place of residence.

11.3 (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 the owner or his or her spouse requires money to pay the first and last months’ rent to obtain a principal residence for the owner.

(2) Only one application may be made under this section during a calendar year.

(3) The application must specify the amount to be withdrawn from the fund.

(4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “J” and “K” where,

“J” is 5 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “K” is the amount required for the first and last months’ rent.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application.

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

1. 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.

2. A copy of the rental agreement, if available.

3. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) In this section,

“principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is intended to be occupied by the individual as his or her primary place of residence.

11.4 (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 the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed is 66 2/3 per cent or less of the Year’s Maximum Pensionable Earnings for the year in which the application is signed.

(2) Only one application may be made under this section during a calendar year.

(3) The application must specify the amount to be withdrawn from the fund.

(4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is calculated using the formula,

X − L

in which,

  “X” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “L” is 75 per cent of the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application.

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

1. 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.

2. A statement, signed by the owner, setting out the amount of his or her expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed.

3. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) For the purposes of this section, an owner’s expected total income from all sources, before taxes, does not include,

(a) a withdrawal under this section;

(b) a refund or repayment of taxes paid to a Canadian jurisdiction;

(c) a refundable tax credit;

(d) a refund of tax paid under the Ontario Child Care Supplement for Working Families program under section 8.5 of the Income Tax Act;

(e) 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;

(f) a payment received by a foster parent under the Child and Family Services Act; or

(g) child support payments received under a court order or an agreement.

(14) Section 12 of Schedule 1.1 to the Regulation is amended by striking out “section 8, 9, 10 or 11” in the portion before paragraph 1 and substituting “section 8, 9, 10, 11, 11.1, 11.2, 11.3 or 11.4”.

(15) Subsection 13 (1) of Schedule 1.1 to the Regulation is revoked and the following substituted:

(1) If the owner of a life income fund that is governed by this Schedule is required by section 8, 9, 10, 11, 11.1, 11.2, 11.3 or 11.4 to give a document to a financial institution, the document is a nullity in the following circumstances:

1. If the document is one that must be signed by the owner or by his or her spouse, it is a nullity if it is signed by either of them more than 60 days before the financial institution receives it.

2. In any other case, if the document is required by section 11.1, 11.2, 11.3 or 11.4, it is a nullity if it is signed or dated more than 12 months before the financial institution receives it.

(16) Subsection 13 (2) of Schedule 1.1 to the Regulation is amended by striking out “section 8, 9, 10 or 11” and substituting “section 8, 9, 10, 11, 11.1, 11.2, 11.3 or 11.4”.

(17) Subsection 17 (5) of Schedule 1.1 to the Regulation is revoked.

5. (1) Subsection 6 (5) of Schedule 2 to the Regulation is amended by striking out “section 3, 7.1, 8, 8.1 or 9” and substituting “section 3, 8, 8.1, 9, 9.1, 9.2, 9.3 or 9.4”.

(2) Section 7.1 of Schedule 2 to the Regulation is revoked and the following substituted:

7.1 (1) An application under section 8, 8.1, 9, 9.1, 9.2, 9.3 or 9.4 to withdraw money or transfer assets from a locked-in retirement income fund that is governed by this Schedule must be made on a form approved by the Superintendent and must be given to the financial institution that administers the fund.

(2) The contract governing a locked-in retirement income fund that is governed by this Schedule 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 the application to withdraw money or transfer assets from the fund under section 8, 8.1, 9, 9.1, 9.2, 9.3 or 9.4, as the case may be.

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

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

(3) Subsections 8 (2) and (3) of Schedule 2 to the Regulation are revoked.

(4) Subsection 8 (6) of Schedule 2 to the Regulation is revoked and the following substituted:

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

1. 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.

(5) Subsections 8.1 (2), (3) and (5) of Schedule 2 to the Regulation are revoked.

(6) Subsections 9 (2), (3) and (5) of Schedule 2 to the Regulation are revoked.

(7) Schedule 2 to the Regulation is amended by adding the following sections:

9.1 (1) The owner of a locked-in retirement 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 the owner, his or her spouse, or a dependant has incurred or will incur medical expenses relating to an illness or physical disability of any of them.

(2) Only one application may be made under this section during a calendar year in respect of a particular person.

(3) The application must specify the amount to be withdrawn from the fund.

(4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “X” and “G” where,

  “X” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “G” is the sum of the amount of the person’s medical expenses that have been incurred and an estimate of the total amount of the person’s medical expenses for the 12 months after the date on which the application is signed.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application.

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

1. 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.

2. A statement signed by a physician or dentist, as applicable, indicating that, in his or her opinion, the expenses claimed are or were necessary for the person’s treatment.  The physician or dentist must be licensed to practise medicine or dentistry, as the case may be, in a jurisdiction in Canada.

3. A copy of the receipts or the estimate to account for the total amount of the medical expenses being claimed.

4. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) For the purposes of this section, a person is a dependant if he or she was dependent on the owner or the owner’s spouse for support at some time during the calendar year in which the application is signed or during the previous calendar year.

(8) For the purposes of this section, medical expenses include,

(a) expenses for goods and services of a medical or dental nature; and

(b) expenses incurred or to be incurred for renovations or alterations to the owner’s or the dependant’s principal residence (as defined in subsection 9.2 (7)) and any additional expenses incurred in the construction of a principal residence made necessary by the illness or physical disability of the owner, his or her spouse or a dependant.

9.2 (1) The owner of a locked-in retirement 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,

(a) if the owner or his or her spouse has received a written demand in respect of arrears in the payment of rent on the owner’s principal residence, and the owner could face eviction if the debt remains unpaid; or

(b) if the owner or his or her spouse has received a written demand in respect of a default on a debt that is secured against the owner’s principal residence, and the owner could face eviction if the amount in default remains unpaid.

(2) Only one application may be made under this section during a calendar year.

(3) The application must specify the amount to be withdrawn from the fund.

(4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “X” and “H” where,

  “X” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “H” is, with respect to arrears in the payment of rent, the sum of the total amount of arrears of rent and the total amount of rent payable for a period of 12 months or, with respect to a default on a secured debt, the sum of the total amount of the payments that are in default and the total amount of payments due and interest payable on the debt for the 12 months after the date on which the application is signed.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application.

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

1. 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.

2. A copy of the written demand in respect of arrears in the payment of rent or in respect of the default on the secured debt, as the case may be.

3. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) In this section,

“principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is occupied by the individual as his or her primary place of residence.

9.3 (1) The owner of a locked-in retirement 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 the owner or his or her spouse requires money to pay the first and last months’ rent to obtain a principal residence for the owner.

(2) Only one application may be made under this section during a calendar year.

(3) The application must specify the amount to be withdrawn from the fund.

(4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “J” and “K” where,

“J” is 5 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “K” is the amount required for the first and last months’ rent.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application.

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

1. 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.

2. A copy of the rental agreement, if available.

3. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) In this section,

“principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is intended to be occupied by the individual as his or her primary place of residence.

9.4 (1) The owner of a locked-in retirement 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 the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed is 66 2/3 per cent or less of the Year’s Maximum Pensionable Earnings for the year in which the application is signed.

(2) Only one application may be made under this section during a calendar year.

(3) The application must specify the amount to be withdrawn from the fund.

(4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is calculated using the formula,

X − L

in which,

  “X” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “L” is 75 per cent of the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application.

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

1. 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.

2. A statement, signed by the owner, setting out the amount of his or her expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed.

3. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) For the purposes of this section, an owner’s expected total income from all sources, before taxes, does not include,

(a) a withdrawal under this section;

(b) a refund or repayment of taxes paid to a Canadian jurisdiction;

(c) a refundable tax credit;

(d) a refund of tax paid under the Ontario Child Care Supplement for Working Families program under section 8.5 of the Income Tax Act;

(e) 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;

(f) a payment received by a foster parent under the Child and Family Services Act; or

(g) child support payments received under a court order or an agreement.

(8) Section 10 of Schedule 2 to the Regulation is amended by striking out “section 7.1, 8, 8.1 or 9” in the portion before paragraph 1 and substituting “section 8, 8.1, 9, 9.1, 9.2, 9.3 or 9.4”.

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

(1) If the owner of a locked-in retirement income fund that is governed by this Schedule is required by section 8, 8.1, 9, 9.1, 9.2, 9.3 or 9.4 to give a document to a financial institution, the document is a nullity in the following circumstances:

1. If the document is one that must be signed by the owner or by his or her spouse, it is a nullity if it is signed by either of them more than 60 days before the financial institution receives it.

2. In any other case, if the document is required by section 9.1, 9.2, 9.3 or 9.4, it is a nullity if it is signed or dated more than 12 months before the financial institution receives it.

(10) Subsection 11 (2) of Schedule 2 to the Regulation is amended by striking out “section 7.1, 8, 8.1 or 9” and substituting “section 8, 8.1, 9, 9.1, 9.2, 9.3 or 9.4”.

(11) Subsections 14 (5) and (6) of Schedule 2 to the Regulation are revoked.

6. (1) Schedule 3 to the Regulation is amended by adding the following section after the heading “Withdrawals from the Account”:

5.1 (1) An application under section 6, 7, 8, 8.1, 8.2, 8.3 or 8.4 to withdraw money or transfer assets from a locked-in retirement account that is governed by this Schedule must be made on a form approved by the Superintendent and must be given to the financial institution that administers the fund.

(2) The contract governing a locked-in retirement account that is governed by this Schedule 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 the application to withdraw money or transfer assets from the account under section 6, 7, 8, 8.1, 8.2, 8.3 or 8.4, as the case may be.

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

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

(2) Subsections 6 (2) and (3) of Schedule 3 to the Regulation are revoked.

(3) Subsection 6 (6) of Schedule 3 to the Regulation is revoked and the following substituted:

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

1. 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) Subsections 7 (2), (3) and (5) of Schedule 3 to the Regulation are revoked.

(5) Subsections 8 (2), (3) and (5) of Schedule 3 to the Regulation are revoked.

(6) Schedule 3 to the Regulation is amended by adding the following sections:

8.1 (1) The owner of a locked-in retirement account that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the account if the owner, his or her spouse, or a dependant has incurred or will incur medical expenses relating to an illness or physical disability of any of them.

(2) Only one application may be made under this section during a calendar year in respect of a particular person.

(3) The application must specify the amount to be withdrawn from the account.

(4) The minimum amount that may be withdrawn from the account with respect to an application is $500 and the maximum amount is the lesser of “X” and “G” where,

  “X” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “G” is the sum of the amount of the person’s medical expenses that have been incurred and an estimate of the total amount of the person’s medical expenses for the 12 months after the date on which the application is signed.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the account is permitted with respect to the application.

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

1. Either a declaration described in section 9 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.

2. A statement signed by a physician or dentist, as applicable, indicating that, in his or her opinion, the expenses claimed are or were necessary for the person’s treatment.  The physician or dentist must be licensed to practise medicine or dentistry, as the case may be, in a jurisdiction in Canada.

3. A copy of the receipts or the estimate to account for the total amount of the medical expenses being claimed.

4. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) For the purposes of this section, a person is a dependant if he or she was dependent on the owner or the owner’s spouse for support at some time during the calendar year in which the application is signed or during the previous calendar year.

(8) For the purposes of this section, medical expenses include,

(a) expenses for goods and services of a medical or dental nature; and

(b) expenses incurred or to be incurred for renovations or alterations to the owner’s or the dependant’s principal residence (as defined in subsection 8.2 (7)) and any additional expenses incurred in the construction of a principal residence made necessary by the illness or physical disability of the owner, his or her spouse or a dependant.

8.2 (1) The owner of a locked-in retirement account that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the account,

(a) if the owner or his or her spouse has received a written demand in respect of arrears in the payment of rent on the owner’s principal residence, and the owner could face eviction if the debt remains unpaid; or

(b) if the owner or his or her spouse has received a written demand in respect of a default on a debt that is secured against the owner’s principal residence, and the owner could face eviction if the amount in default remains unpaid.

(2) Only one application may be made under this section during a calendar year.

(3) The application must specify the amount to be withdrawn from the account.

(4) The minimum amount that may be withdrawn from the account with respect to an application is $500 and the maximum amount is the lesser of “X” and “H” where,

  “X” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “H” is, with respect to arrears in the payment of rent, the sum of the total amount of arrears of rent and the total amount of rent payable for a period of 12 months or, with respect to a default on a secured debt, the sum of the total amount of the payments that are in default and the total amount of payments due and interest payable on the debt for the 12 months after the date on which the application is signed.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the account is permitted with respect to the application.

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

1. Either a declaration described in section 9 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.

2. A copy of the written demand in respect of arrears in the payment of rent or in respect of the default on the secured debt, as the case may be.

3. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) In this section,

“principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is occupied by the individual as his or her primary place of residence.

8.3 (1) The owner of a locked-in retirement account that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the account if the owner or his or her spouse requires money to pay the first and last months’ rent to obtain a principal residence for the owner.

(2) Only one application may be made under this section during a calendar year.

(3) The application must specify the amount to be withdrawn from the account.

(4) The minimum amount that may be withdrawn from the account with respect to an application is $500 and the maximum amount is the lesser of “J” and “K” where,

“J” is 5 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “K” is the amount required for the first and last months’ rent.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the account is permitted with respect to the application.

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

1. Either a declaration described in section 9 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.

2. A copy of the rental agreement, if available.

3. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) In this section,

“principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is intended to be occupied by the individual as his or her primary place of residence.

8.4 (1) The owner of a locked-in retirement account that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the account if the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed is 66 2/3 per cent or less of the Year’s Maximum Pensionable Earnings for the year in which the application is signed.

(2) Only one application may be made under this section during a calendar year.

(3) The application must specify the amount to be withdrawn from the account.

(4) The minimum amount that may be withdrawn from the account with respect to an application is $500 and the maximum amount is calculated using the formula,

X − L

in which,

  “X” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and

  “L” is 75 per cent of the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed.

(5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the account is permitted with respect to the application.

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

1. Either a declaration described in section 9 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.

2. A statement, signed by the owner, setting out the amount of his or her expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed.

3. A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment.

(7) For the purposes of this section, an owner’s expected total income from all sources, before taxes, does not include,

(a) a withdrawal under this section;

(b) a refund or repayment of taxes paid to a Canadian jurisdiction;

(c) a refundable tax credit;

(d) a refund of tax paid under the Ontario Child Care Supplement for Working Families program under section 8.5 of the Income Tax Act;

(e) 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;

(f) a payment received by a foster parent under the Child and Family Services Act; or

(g) child support payments received under a court order or an agreement.

(7) Section 9 of Schedule 3 to the Regulation is amended by striking out “section 6, 7 or 8” in the portion before paragraph 1 and substituting “section 6, 7, 8, 8.1, 8.2, 8.3 or 8.4”.

(8) Subsection 10 (1) of Schedule 3 to the Regulation is revoked and the following substituted:

(1) If the owner of a locked-in retirement account that is governed by this Schedule is required by section 6, 7, 8, 8.1, 8.2, 8.3 or 8.4 to give a document to a financial institution, the document is a nullity in the following circumstances:

1. If the document is one that must be signed by the owner or by his or her spouse, it is a nullity if it is signed by either of them more than 60 days before the financial institution receives it.

2. In any other case, if the document is required by section 8.1, 8.2, 8.3 or 8.4, it is a nullity if it is signed or dated more than 12 months before the financial institution receives it.

(9) Subsection 10 (2) of Schedule 3 to the Regulation is amended by striking out “section 6, 7 or 8” and substituting “section 6, 7, 8, 8.1, 8.2, 8.3 or 8.4”.

Commencement

7. This Regulation comes into force on the later of the following days:

1. The day section 4 of Schedule 44 to the Strong Action for Ontario Act (Budget Measures), 2012 comes into force.

2. The day this Regulation is filed.

 

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