R-15.1, r. 6 - Regulation respecting supplemental pension plans

Section 29 Disposition versions

2016-01-01

29. A locked-in retirement account is an account established under an agreement in writing entered into by a purchaser who is a former member, a member or the spouse thereof and a financial institution authorized for that purpose in order to pay a retirement pension to the purchaser. That agreement must fulfil the requirements of the Taxation Act (chapter I-3) in order to be a registered retirement savings plan.

An agreement establishing a locked-in retirement account must be in conformity with the standard contract previously registered with Retraite Québec, which must provide:

(1)  that the only sums that may be transferred into the locked-in retirement account are the sums originating, directly or initially, from the fund of a pension plan governed by the Act or referred to in paragraph 1, 2, 2.1, 2.2, 3.1 or 5 of section 28, or from another locked-in retirement account;

(2)  that, with the exception of the cases referred to in paragraphs 3 and 8 to 9.1, the balance of the account may only be converted into a life pension guaranteed by an insurer and established for the duration of the life of the purchaser alone or for the duration of the life of the purchaser and the life of his spouse; the periodic amounts paid under that pension must be equal, unless each amount to be paid is uniformly increased by reason of an index or a rate provided for in the contract or uniformly adjusted by reason of a seizure effected on the benefits of the purchaser, a redetermination of the purchaser’s pension, partition of the purchaser’s benefits with his spouse, the payment of a temporary pension under the conditions provided for in section 91.1 of the Act or the election provided for under paragraph 3 of the first paragraph of section 93 of the Act.

(3)  that where the purchaser who is a former member or a member dies before the conversion of the balance of the account into a pension, that balance is paid to his spouse or, failing that, to his successors;

(4)  that the purchaser may require the conversion of the balance of the account into a life pension at any time, unless the term agreed to for the investments has not expired;

(5)  that the balance of the account may not be converted into a pension guaranteed by an insurer unless, at the death of the purchaser who is a former member or a member, a life pension equal to at least 60% of the amount of the purchaser’s pension, including, during the replacement period, the amount of any temporary pension is granted to his spouse who has not waived it;

(6)  that the purchaser’s spouse may, by giving written notice to the financial institution, waive his right to receive the payment provided for in paragraph 3 or the pension provided for in paragraph 5 and may revoke such a waiver by transmitting to the financial institution a written notice to that effect before, in the case referred to in paragraph 3, the death of the purchaser or, in the case referred to in paragraph 5, the date of conversion, in whole or in part, of the balance of the account into a life pension;

(7)  that the spouse of the purchaser ceases to be entitled to the benefit provided for in paragraph 3 or, as the case may be, in paragraph 5 upon separation from bed and board, divorce, nullity of marriage, dissolution or nullity of civil union or, in the case of a spouse who is not a married or civil union spouse, upon cessation of conjugal relationship, unless the purchaser has transmitted to the financial institution the notice provided for in paragraph 7 of the second paragraph section 89 of the Act;

(7.1)  that the seizable portion of the balance of the fund may be paid in a lump sum in execution of a judgment rendered in favour of the purchaser’s spouse that gives entitlement to a seizure for unpaid alimony;

(8)  that the purchaser may transfer, in whole or in part, the balance of the account to a pension plan governed by the Act or referred to in paragraph 1, 2, 2.1, 2.2, 3.1, 4 or 5 of section 28, unless the agreed to term of the investments has not expired;

(8.1)  that the purchaser may, unless the agreed to term of the investments has not expired, require that the total balance of the fund be paid to him in a lump sum if he has not resided in Canada since at least 2 years;

(9)  that the purchaser may withdraw all or a part of the balance of the account and receive a payment or a series of payments where a physician certifies that his physical or mental disability reduces his life expectancy;

(9.1)  that the entire balance of the account may be paid in a lump-sum to a purchaser on application to the financial institution accompanied with a declaration in conformity with the one prescribed in Schedule 0.2, on the following conditions:

(a)  the purchaser was at least 65 years of age at the end of the year preceding the application;

(b)  the total of the sums credited to him in the retirement savings instruments mentioned in Schedule 0.2 does not exceed 40% of the Maximum Pensionable Earnings, for the year in which the purchaser applies for payment, pursuant to the Act respecting the Québec Pension Plan (chapter R-9);

(10)  that the purchaser is entitled to receive, at least once a year, a statement indicating the sums deposited, their source, the accumulated earnings, the fees debited since the last statement and the balance of the account;

(10.1)  that where a sum is paid from the account contrary to the provisions of the contract or the Regulation purchaser may, unless the payment is attributable to a false declaration by him, require that the financial institution pay him, as a penalty, a sum equal to the irregular payment;

(11)  that the financial institution may make no amendment that would entail a reduction of the benefits resulting from the agreement unless the purchaser is entitled, before the date of the amendment, to a transfer of the balance of the account and has received, at least 90 days before the date on which he may exercise that entitlement, a notice indicating to him the subject of the amendment and the date from which he may exercise that entitlement;

(12)  that the transfer referred to in subparagraphs 8 and 11 may, at the option of the financial institution and unless otherwise stipulated, be effected by remittance of the investment securities respecting the account;

(13)  that the financial institution may not, except to fulfil requirements under law, make any amendment other than that provided for in subparagraph 11 without having previously notified the purchaser;

(14)  that the financial institution may amend the agreement only to the extent that it remains in conformity with the standard contract amended and registered with Retraite Québec.

Sections 27 to 31 of the Act and the second and third paragraphs of section 32 of the Act apply, with the necessary modifications, to the registration of a standard contract designed to propose the establishment of a locked-in retirement account and to amendments thereto. The registration of a standard contract may, in addition, be cancelled where no contract establishing a life income fund in conformity with it exists and where the financial institution attests that it no longer intends to make any contracts in conformity with that standard contract.

O.C. 1158-90, s. 29; O.C. 1681-97, s. 17; O.C. 173-2002, s. 23; O.C. 1073-2009, s. 9; O.C. 500-2014, s. 13.

2014-07-01

29. A locked-in retirement account is an account established under an agreement in writing entered into by a purchaser who is a former member, a member or the spouse thereof and a financial institution authorized for that purpose in order to pay a retirement pension to the purchaser. That agreement must fulfil the requirements of the Taxation Act (chapter I-3) in order to be a registered retirement savings plan.

An agreement establishing a locked-in retirement account must be in conformity with the standard contract previously registered with the Régie, which must provide:

(1)  that the only sums that may be transferred into the locked-in retirement account are the sums originating, directly or initially, from the fund of a pension plan governed by the Act or referred to in paragraph 1, 2, 2.1, 2.2, 3.1 or 5 of section 28, or from another locked-in retirement account;

(2)  that, with the exception of the cases referred to in paragraphs 3 and 8 to 9.1, the balance of the account may only be converted into a life pension guaranteed by an insurer and established for the duration of the life of the purchaser alone or for the duration of the life of the purchaser and the life of his spouse; the periodic amounts paid under that pension must be equal, unless each amount to be paid is uniformly increased by reason of an index or a rate provided for in the contract or uniformly adjusted by reason of a seizure effected on the benefits of the purchaser, a redetermination of the purchaser’s pension, partition of the purchaser’s benefits with his spouse, the payment of a temporary pension under the conditions provided for in section 91.1 of the Act or the election provided for under paragraph 3 of the first paragraph of section 93 of the Act.

(3)  that where the purchaser who is a former member or a member dies before the conversion of the balance of the account into a pension, that balance is paid to his spouse or, failing that, to his successors;

(4)  that the purchaser may require the conversion of the balance of the account into a life pension at any time, unless the term agreed to for the investments has not expired;

(5)  that the balance of the account may not be converted into a pension guaranteed by an insurer unless, at the death of the purchaser who is a former member or a member, a life pension equal to at least 60% of the amount of the purchaser’s pension, including, during the replacement period, the amount of any temporary pension is granted to his spouse who has not waived it;

(6)  that the purchaser’s spouse may, by giving written notice to the financial institution, waive his right to receive the payment provided for in paragraph 3 or the pension provided for in paragraph 5 and may revoke such a waiver by transmitting to the financial institution a written notice to that effect before, in the case referred to in paragraph 3, the death of the purchaser or, in the case referred to in paragraph 5, the date of conversion, in whole or in part, of the balance of the account into a life pension;

(7)  that the spouse of the purchaser ceases to be entitled to the benefit provided for in paragraph 3 or, as the case may be, in paragraph 5 upon separation from bed and board, divorce, nullity of marriage, dissolution or nullity of civil union or, in the case of a spouse who is not a married or civil union spouse, upon cessation of conjugal relationship, unless the purchaser has transmitted to the financial institution the notice provided for in paragraph 7 of the second paragraph section 89 of the Act;

(7.1)  that the seizable portion of the balance of the fund may be paid in a lump sum in execution of a judgment rendered in favour of the purchaser’s spouse that gives entitlement to a seizure for unpaid alimony;

(8)  that the purchaser may transfer, in whole or in part, the balance of the account to a pension plan governed by the Act or referred to in paragraph 1, 2, 2.1, 2.2, 3.1, 4 or 5 of section 28, unless the agreed to term of the investments has not expired;

(8.1)  that the purchaser may, unless the agreed to term of the investments has not expired, require that the total balance of the fund be paid to him in a lump sum if he has not resided in Canada since at least 2 years;

(9)  that the purchaser may withdraw all or a part of the balance of the account and receive a payment or a series of payments where a physician certifies that his physical or mental disability reduces his life expectancy;

(9.1)  that the entire balance of the account may be paid in a lump-sum to a purchaser on application to the financial institution accompanied with a declaration in conformity with the one prescribed in Schedule 0.2, on the following conditions:

(a)  the purchaser was at least 65 years of age at the end of the year preceding the application;

(b)  the total of the sums credited to him in the retirement savings instruments mentioned in Schedule 0.2 does not exceed 40% of the Maximum Pensionable Earnings, for the year in which the purchaser applies for payment, pursuant to the Act respecting the Québec Pension Plan (chapter R-9);

(10)  that the purchaser is entitled to receive, at least once a year, a statement indicating the sums deposited, their source, the accumulated earnings, the fees debited since the last statement and the balance of the account;

(10.1)  that where a sum is paid from the account contrary to the provisions of the contract or the Regulation purchaser may, unless the payment is attributable to a false declaration by him, require that the financial institution pay him, as a penalty, a sum equal to the irregular payment;

(11)  that the financial institution may make no amendment that would entail a reduction of the benefits resulting from the agreement unless the purchaser is entitled, before the date of the amendment, to a transfer of the balance of the account and has received, at least 90 days before the date on which he may exercise that entitlement, a notice indicating to him the subject of the amendment and the date from which he may exercise that entitlement;

(12)  that the transfer referred to in subparagraphs 8 and 11 may, at the option of the financial institution and unless otherwise stipulated, be effected by remittance of the investment securities respecting the account;

(13)  that the financial institution may not, except to fulfil requirements under law, make any amendment other than that provided for in subparagraph 11 without having previously notified the purchaser;

(14)  that the financial institution may amend the agreement only to the extent that it remains in conformity with the standard contract amended and registered with the Régie.

Sections 27 to 31 of the Act and the second and third paragraphs of section 32 of the Act apply, with the necessary modifications, to the registration of a standard contract designed to propose the establishment of a locked-in retirement account and to amendments thereto. The registration of a standard contract may, in addition, be cancelled where no contract establishing a life income fund in conformity with it exists and where the financial institution attests that it no longer intends to make any contracts in conformity with that standard contract.

O.C. 1158-90, s. 29; O.C. 1681-97, s. 17; O.C. 173-2002, s. 23; O.C. 1073-2009, s. 9; O.C. 500-2014, s. 13.

2012-09-01

29. A locked-in retirement account is an account established under an agreement in writing entered into by a purchaser who is a former member, a member or the spouse thereof and a financial institution authorized for that purpose in order to pay a retirement pension to the purchaser. That agreement must fulfil the requirements of the Taxation Act (chapter I-3) in order to be a registered retirement savings plan.

An agreement establishing a locked-in retirement account must be in conformity with the standard contract previously registered with the Régie, which must provide:

(1)  that the only sums that may be transferred into the locked-in retirement account are the sums originating, directly or initially, from the fund of a pension plan governed by the Act or referred to in paragraph 1, 2, 3.1 or 5 of section 28, or from another locked-in retirement account;

(2)  that, with the exception of the cases referred to in paragraphs 3 and 8 to 9.1, the balance of the account may only be converted into a life pension guaranteed by an insurer and established for the duration of the life of the purchaser alone or for the duration of the life of the purchaser and the life of his spouse; the periodic amounts paid under that pension must be equal, unless each amount to be paid is uniformly increased by reason of an index or a rate provided for in the contract or uniformly adjusted by reason of a seizure effected on the benefits of the purchaser, a redetermination of the purchaser’s pension, partition of the purchaser’s benefits with his spouse, the payment of a temporary pension under the conditions provided for in section 91.1 of the Act or the election provided for under paragraph 3 of the first paragraph of section 93 of the Act.

(3)  that where the purchaser who is a former member or a member dies before the conversion of the balance of the account into a pension, that balance is paid to his spouse or, failing that, to his successors;

(4)  that the purchaser may require the conversion of the balance of the account into a life pension at any time, unless the term agreed to for the investments has not expired;

(5)  that the balance of the account may not be converted into a pension guaranteed by an insurer unless, at the death of the purchaser who is a former member or a member, a life pension equal to at least 60% of the amount of the purchaser’s pension, including, during the replacement period, the amount of any temporary pension is granted to his spouse who has not waived it;

(6)  that the purchaser’s spouse may, by giving written notice to the financial institution, waive his right to receive the payment provided for in paragraph 3 or the pension provided for in paragraph 5 and may revoke such a waiver by transmitting to the financial institution a written notice to that effect before, in the case referred to in paragraph 3, the death of the purchaser or, in the case referred to in paragraph 5, the date of conversion, in whole or in part, of the balance of the account into a life pension;

(7)  that the spouse of the purchaser ceases to be entitled to the benefit provided for in paragraph 3 or, as the case may be, in paragraph 5 upon separation from bed and board, divorce, nullity of marriage, dissolution or nullity of civil union or, in the case of a spouse who is not a married or civil union spouse, upon cessation of conjugal relationship, unless the purchaser has transmitted to the financial institution the notice provided for in paragraph 7 of the second paragraph section 89 of the Act;

(7.1)  that the seizable portion of the balance of the fund may be paid in a lump sum in execution of a judgment rendered in favour of the purchaser’s spouse that gives entitlement to a seizure for unpaid alimony;

(8)  that the purchaser may transfer, in whole or in part, the balance of the account to a pension plan governed by the Act or referred to in paragraph 1, 2, 3.1, 4 or 5 of section 28, unless the agreed to term of the investments has not expired;

(8.1)  that the purchaser may, unless the agreed to term of the investments has not expired, require that the total balance of the fund be paid to him in a lump sum if he has not resided in Canada since at least 2 years;

(9)  that the purchaser may withdraw all or a part of the balance of the account and receive a payment or a series of payments where a physician certifies that his physical or mental disability reduces his life expectancy;

(9.1)  that the entire balance of the account may be paid in a lump-sum to a purchaser on application to the financial institution accompanied with a declaration in conformity with the one prescribed in Schedule 0.2, on the following conditions:

(a)  the purchaser was at least 65 years of age at the end of the year preceding the application;

(b)  the total of the sums credited to him in the retirement savings instruments mentioned in Schedule 0.2 does not exceed 40% of the Maximum Pensionable Earnings, for the year in which the purchaser applies for payment, pursuant to the Act respecting the Québec Pension Plan (chapter R-9);

(10)  that the purchaser is entitled to receive, at least once a year, a statement indicating the sums deposited, their source, the accumulated earnings, the fees debited since the last statement and the balance of the account;

(10.1)  that where a sum is paid from the account contrary to the provisions of the contract or the Regulation purchaser may, unless the payment is attributable to a false declaration by him, require that the financial institution pay him, as a penalty, a sum equal to the irregular payment;

(11)  that the financial institution may make no amendment that would entail a reduction of the benefits resulting from the agreement unless the purchaser is entitled, before the date of the amendment, to a transfer of the balance of the account and has received, at least 90 days before the date on which he may exercise that entitlement, a notice indicating to him the subject of the amendment and the date from which he may exercise that entitlement;

(12)  that the transfer referred to in subparagraphs 8 and 11 may, at the option of the financial institution and unless otherwise stipulated, be effected by remittance of the investment securities respecting the account;

(13)  that the financial institution may not, except to fulfil requirements under law, make any amendment other than that provided for in subparagraph 11 without having previously notified the purchaser;

(14)  that the financial institution may amend the agreement only to the extent that it remains in conformity with the standard contract amended and registered with the Régie.

Sections 27 to 31 of the Act and the second and third paragraphs of section 32 of the Act apply, with the necessary modifications, to the registration of a standard contract designed to propose the establishment of a locked-in retirement account and to amendments thereto. The registration of a standard contract may, in addition, be cancelled where no contract establishing a life income fund in conformity with it exists and where the financial institution attests that it no longer intends to make any contracts in conformity with that standard contract.

O.C. 1158-90, s. 29; O.C. 1681-97, s. 17; O.C. 173-2002, s. 23; O.C. 1073-2009, s. 9.