I-3 - Taxation Act

Section 965.0.19 Disposition versions

2022-06-08

965.0.19. In this Title,

“administrator”, of a pooled pension plan, means

(a)  a corporation resident in Canada that is responsible for the administration of the plan and that is authorized under the Pooled Registered Pension Plans Act (S.C. 2012, c. 16) or a similar law of a province to act as an administrator for one or more pooled pension plans; or

(b)  an entity designated in respect of the plan under section 21 of the Pooled Registered Pension Plans Act or any provision of a law of a province that is similar to that section;

“member”, of a pooled pension plan, means an individual (other than a trust) who holds an account under the plan;

“pooled pension plan” means a plan that is registered under the Pooled Registered Pension Plans Act or a similar law of a province;

“qualifying annuity”, for an individual, means a life annuity (other than an advanced life deferred annuity) that

(a)  is payable to the individual or, where the annuity is constituted for the benefit of the individual and the individual’s spouse jointly, is payable to the individual and, on the individual’s death, to the individual’s spouse;

(b)  is payable beginning no later than the later of the end of the calendar year in which the annuity is acquired and the end of the calendar year in which the individual attains 71 years of age;

(c)  unless the annuity is subsequently commuted into a single payment, is payable

i.  at least annually, and

ii.  in equal amounts, except for an amount that is not so payable solely because of an adjustment that would, if the annuity were an annuity under a retirement savings plan, be in accordance with any of subparagraphs iii to v of paragraph b of subsection 3 of section 146 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

(d)  if the annuity includes a guaranteed period, requires that

i.  the guaranteed period not exceed 15 years, and

ii.  in the event of the death of the individual and that of the individual’s spouse during the guaranteed period, any remaining amounts otherwise payable be commuted into a single payment as soon as practicable after the later death; and

(e)  does not permit any premiums to be paid, other than the premium paid from the PRPP to acquire the annuity;

“qualifying survivor”, in relation to a member of a PRPP, means an individual who, immediately before the death of the member

(a)  was a spouse of the member; or

(b)  was a child or grandchild of the member who was financially dependent on the member for support;

“single amount” means an amount that is not part of a series of periodic payments;

“successor member” means an individual who was the spouse of a member of a PRPP immediately before the death of the member and who acquires, as a consequence of the death, all of the member’s rights in respect of the member’s account under the PRPP.

For the purposes of the definition of “qualifying survivor” in the first paragraph, a child or grandchild of the member is presumed not to be financially dependent on the member at the time of the death of the member if the child’s or grandchild’s income, for the taxation year preceding the taxation year in which the member died, was greater than the amount determined by the formula in subsection 1.1 of section 146 of the Income Tax Act for that preceding year.

2015, c. 21, s. 351; 2022, c. 23, s. 86.

2015-10-21

965.0.19. In this Title,

“administrator”, of a pooled pension plan, means

(a)  a corporation resident in Canada that is responsible for the administration of the plan and that is authorized under the Pooled Registered Pension Plans Act (S.C. 2012, c. 16) or a similar law of a province to act as an administrator for one or more pooled pension plans; or

(b)  an entity designated in respect of the plan under section 21 of the Pooled Registered Pension Plans Act or any provision of a law of a province that is similar to that section;

“member”, of a pooled pension plan, means an individual (other than a trust) who holds an account under the plan;

“pooled pension plan” means a plan that is registered under the Pooled Registered Pension Plans Act or a similar law of a province;

“qualifying annuity”, for an individual, means a life annuity that

(a)  is payable to the individual or, where the annuity is constituted for the benefit of the individual and the individual’s spouse jointly, is payable to the individual and, on the individual’s death, to the individual’s spouse;

(b)  is payable beginning no later than the later of the end of the calendar year in which the annuity is acquired and the end of the calendar year in which the individual attains 71 years of age;

(c)  unless the annuity is subsequently commuted into a single payment, is payable

i.  at least annually, and

ii.  in equal amounts, except for an amount that is not so payable solely because of an adjustment that would, if the annuity were an annuity under a retirement savings plan, be in accordance with any of subparagraphs iii to v of paragraph b of subsection 3 of section 146 of the Income Tax Act (R.S.C. 1985, c. 1 (5th Suppl.));

(d)  if the annuity includes a guaranteed period, requires that

i.  the guaranteed period not exceed 15 years, and

ii.  in the event of the death of the individual and that of the individual’s spouse during the guaranteed period, any remaining amounts otherwise payable be commuted into a single payment as soon as practicable after the later death; and

(e)  does not permit any premiums to be paid, other than the premium paid from the PRPP to acquire the annuity;

“qualifying survivor”, in relation to a member of a PRPP, means an individual who, immediately before the death of the member

(a)  was a spouse of the member; or

(b)  was a child or grandchild of the member who was financially dependent on the member for support;

“single amount” means an amount that is not part of a series of periodic payments;

“successor member” means an individual who was the spouse of a member of a PRPP immediately before the death of the member and who acquires, as a consequence of the death, all of the member’s rights in respect of the member’s account under the PRPP.

For the purposes of the definition of “qualifying survivor” in the first paragraph, a child or grandchild of the member is presumed not to be financially dependent on the member at the time of the death of the member if the child’s or grandchild’s income, for the taxation year preceding the taxation year in which the member died, was greater than the amount determined by the formula in subsection 1.1 of section 146 of the Income Tax Act for that preceding year.

2015, c. 21, s. 351.