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

Section 19.2 Disposition versions

2012-09-01

19.2. The standard contract that includes the provisions referred to in section 19.1 shall provide that the purchaser may, during a fiscal year of the life income fund, receive on application the balance of the fund, in whole or in part, in the form of a temporary income payable in monthly payments, none of which may exceed 1/12 of the difference between the following amounts:

(1)  40% of the Maximum Pensionable Earnings determined, for the year in which the payment is made, pursuant to the Act respecting the Québec Pension Plan (chapter R-9);

(2)  75% of the purchaser’s income for the 12 months that follow, excluding the income provided for in this section,

provided the following conditions are met:

— the income of the purchaser for the 12 months that follow, excluding the income provided for in this section, does not exceed the amount referred to in subparagraph 1 hereinbefore;

— the purchaser makes an application to the financial institution to that effect, accompanied with a declaration in conformity to the one prescribed in Schedule 0.5 and his written undertaking to request a suspension of payments as soon as his income, excluding the income provided for in this section, reaches the amount referred to in subparagraph 1 hereinbefore;

— the purchaser was less than 54 years of age at the end of the year that precedes his application.

In such case, the contract shall stipulate:

(1)  that the income provided for in this section may not be paid to the purchaser where he has requested a suspension of payments nor after the end of the year in which he reaches 54 years of age;

(2)  that the purchaser who is entitled to receive the income referred to in this section and who is a member or spouse who has become entitled to a pension under a pension plan may, for the purposes of replacing such pension by a temporary income, apply once a year for the transfer from the pension plan to the life income fund of an amount equal to the lesser of the following amounts:

(a)  the additional amount required for the balance of the life income fund to allow, until the end of the year, the payment of the monthly payments provided for in the first paragraph;

(b)  the value of his benefits under the plan.

O.C. 1681-97, s. 8; O.C. 577-98, s. 1.