Acts and Regulations

91-195 - General

Section 21
Disposition versions

Full text
Transfer to locked-in retirement account
21(1)In this section and in section 22
“owner” means the person the commuted value of whose benefit has been transferred in whole or in part into a retirement savings arrangement referred to in section 20.
21(2)Subject to section 19, the following provisions apply to a contract between an owner and a financial institution acting as a trustee for a locked-in retirement account referred to in paragraph 20(a) and, if a conflict exists between this subsection and the terms of a contract, this subsection shall prevail:
(a) the only money that may be transferred into the account are the sums originating, directly or indirectly, from
(i) the fund of a pension plan that conforms with the Act and this Regulation or with similar legislation in another jurisdiction, if the money is being transferred under section 36 of the Act or under a similar provision in legislation in another jurisdiction,
(ii) another retirement savings arrangement that conforms with the Act and this Regulation, or
(iii) a life or deferred life annuity under a contract that conforms with the Act and this Regulation;
(b) except as provided for elsewhere in this Regulation, the balance of the money in the account, in whole or in part, may be converted at any time only into a life or deferred life annuity that conforms to section 23;
(c) if the owner dies before signing a contract under which an annuity is purchased under paragraph (b), the balance of the money in the account shall be paid
(i) to the spouse or common-law partner of the owner, unless the spouse or common-law partner waives in the form provided by the Superintendent all rights that he or she may have in the account under the Act, this Regulation or the contract,
(ii) if the owner has a spouse or common-law partner who has waived all rights under subparagraph (i) or if the owner does not have a spouse or common-law partner, to a beneficiary on death designated by the owner, or
(iii) if the owner has a spouse or common-law partner who has waived all rights under subparagraph (i) or if the owner does not have a spouse or common-law partner and if the owner has not designated a beneficiary on death, to the estate of the owner;
(d) the owner may withdraw the balance of the money in the account, in whole or in part, and receive a payment or series of payments if
(i) a physician certifies in writing to the financial institution that is a party to the contract that the owner suffers from a significant physical or mental disability that considerably reduces life expectancy, and
(ii) if the owner has a spouse or common-law partner, the owner delivers to the financial institution a waiver completed by the spouse or common-law partner in the form provided by the Superintendent;
(e) the owner may withdraw an amount from the account if
(i) the amount is withdrawn to reduce the amount of tax that would otherwise be payable under Part X.1 of the Income Tax Act (Canada) by the owner, and
(ii) the financial institution, notwithstanding section 20, establishes a sub-account, that is not a registered retirement savings plan, of the locked-in retirement account, and the owner deposits the amount withdrawn, less any amount required to be withheld by the financial institution under the Income Tax Act (Canada), into the sub-account;
(f) unless the contract provides for an early cashing-in value before the expiration of the term agreed to for the investment, the owner is entitled at any time after the term has expired
(i) to transfer before a conversion referred to in paragraph (b), the balance of the money in the account, in whole or in part, to the pension fund of a pension plan that conforms with the Act and this Regulation or with similar legislation in another jurisdiction or to a retirement savings arrangement that conforms with the Act and this Regulation, or
(ii) to convert the balance of the money in the account, in whole or in part, into a life or deferred life annuity that conforms to section 23;
(f.1) the owner shall not be entitled to make a transfer under subparagraph (f)(i) to a pension plan that is not registered in the Province unless
(i) the pension plan is registered for persons employed in a designated jurisdiction, and
(ii) the owner is employed in that jurisdiction by an employer who is making contributions on behalf of the owner to the pension fund that is to receive the amount to be transferred;
(g) subsections (8.1) to (11) apply to paragraph (f) with the necessary modifications;
(g.1) the owner may withdraw the balance of the money in the account if
(i) the owner and his or her spouse or common-law partner, if any, are not Canadian citizens,
(ii) the owner and his or her spouse or common-law partner, if any, are not resident in Canada for the purposes of the Income Tax Act (Canada), and
(iii) the owner’s spouse or common-law partner, if any, waives, in the form provided by the Superintendent, any rights that he or she may have in the account under the Act, this Regulation or the contract;
(h) the commuted value of the owner’s benefits provided under the contract shall be determined in accordance with the Act and this Regulation if it is divided under section 44 of the Act;
(i) no money transferred, including interest, shall be assigned, charged, anticipated, given as security or subjected to execution, seizure, attachment or other process of law except under section 44 of the Act or subsection 57(6) of the Act;
(j) a transaction in contravention of paragraph (i) is void;
(k) no money transferred, including interest, shall be commuted or surrendered during the lifetime of the owner except under paragraph (d) or (e), section 44 of the Act or subsection 57(6) of the Act;
(l) a transaction in contravention of paragraph (k) is void;
(m) an amendment to the contract shall not be made
(i) that would result in a reduction of the benefits arising from the contract unless the owner is entitled, before the effective date of the amendment, to transfer the balance of the money in the account in accordance with paragraph (f) and, unless a notice is delivered to the owner at least ninety days before the effective date, describing the amendment and the date on which the owner may exercise the entitlement to transfer,
(ii) unless the contract as amended remains in conformity with the Act and this Regulation, or
(iii) except to bring the contract into conformity with requirements under an Act of the Legislature or other legislation in another jurisdiction;
(n) a transfer under subparagraph (f)(i) or (m)(i) may, at the option of the financial institution that is a party to the contract and if not otherwise stipulated in the contract, be effected by the remittance to the owner of the investment securities respecting the account;
(o) unless the contract provides for an early cashing-in value before the expiration of the term agreed to for the investments, if there is money invested in the account that may be transferred under subparagraph (f)(i) or (m)(i), such funds shall be transferred no more than thirty days after the owner’s application for the transfer; and
(p) sections 27 to 33 apply with the necessary modifications to the division of the money in the account on the breakdown of a marriage or common-law partnership.
21(3)Repealed: 2001-1
21(4)If the information provided in the form referred to in subsection (8.1) indicates that the commuted value transferred was determined on transfer in a manner that differentiated, while the owner of the account was a member of the plan, on the basis of the sex of the owner, the only money that may subsequently be transferred into the account is money that is also differentiated on the same basis.
21(5)No money, including interest, transferred under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act to a locked-in retirement account shall subsequently be used to purchase a life or deferred life annuity that differentiates on the basis of the annuitant’s sex, unless the commuted value of the deferred pension transferred from the plan into the account was determined on transfer in a manner that differentiated, while the owner of the account was a member of the plan, on the basis of sex of the owner.
21(6)A financial institution that is authorized to offer registered retirement savings plans and that proposes to act under a contract as a transferee of a locked-in retirement account referred to in paragraph 20(a) shall register as a trustee for the proposed locked-in retirement account by filing a completed form provided by the Superintendent with the Superintendent and paying the prescribed fee.
21(7)The Superintendent may refuse to register a financial institution as the trustee of a locked-in retirement account referred to in paragraph 20(a) if the financial institution does not comply with the Act and this Regulation.
21(7.1)The Superintendent may revoke or suspend a financial institution’s registration as the trustee of a locked-in retirement account referred to in paragraph 20(a) if the financial institution does not comply with the Act and this Regulation.
21(7.2)If a financial institution’s registration as the trustee of a locked-in retirement account referred to in paragraph 20(a) is revoked or suspended, the account shall continue to be subject to the requirements of the Act and this Regulation until all the assets of the account have been dispersed or transferred.
21(7.3)A financial institution shall file with the Superintendent a sample commercial copy of every form and contract that it uses with its clients with respect to a locked-in retirement account referred to in paragraph 20(a), including any amended form or contract, within sixty days of the commencement of its use.
21(8)Repealed: 2001-1
21(8.1)Before transferring money to a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, an administrator shall complete the applicable portions of the form provided by the Superintendent and ensure that the owner and the financial institution have completed the portions of that form that are applicable to them.
21(8.2)Before accepting a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, a financial institution shall complete the applicable portions of the form provided by the Superintendent and ensure that the owner and the administrator have completed the portions of that form that are applicable to them.
21(9)An administrator shall not transfer money to a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act unless
(a) the financial institution that the money is being transferred to is registered as the trustee of the locked-in retirement account, and
(b) the form referred to in subsection (8.1) is completed in accordance with that subsection and forwarded with the money to the financial institution.
21(10)A financial institution shall not accept a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act unless the financial institution has complied with subsection (8.2).
21(11)An administrator and a financial institution that have completed the form referred to in subsection (8.1) shall each retain a copy of the form until 93 years after the birth of the owner and whichever is the transferee shall forward a copy of the form to the owner.
21(12)A financial institution that registers or applies to register a standard contract with the Superintendent before February 1, 2001, shall be deemed to have complied with subsection (6) and shall be registered as the trustee of a locked-in retirement account under that subsection.
21(13)Despite subsection (9), a transfer made by an administrator to a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act between February 1, 2001, and December 31, 2001, inclusive, is valid without having completed Form 3.2 as it existed at that time, if the locked-in retirement account was with a financial institution to which subsection (12) applies.
21(14)Despite subsection (10), a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, accepted by a financial institution to which subsection (12) applies, between February 1, 2001, and December 31, 2001, inclusive, is valid without having completed Form 3.2 as it existed at that time.
21(15)Notwithstanding any provision of the Act or this Regulation, a financial institution may permit an owner to withdraw the balance of a locked-in retirement account referred to in paragraph 20(a) if
(a) the owner and, if applicable, the owner’s spouse or common-law partner requests that the balance be withdrawn by delivering the form provided by the Superintendent to the financial institution, and
(b) the financial institution is satisfied, based upon the information provided in the form referred to in paragraph (a) and any other information that has been requested by the financial institution, that
(i) the reported present distribution of assets transferred from pension funds connected with employment in the Province is consistent with the amounts reported to have been transferred from such pension funds, and
(ii) the requested withdrawal is permitted under subsection (16).
21(16)An owner may withdraw the balance of a locked-in retirement account referred to in paragraph 20(a) if
(a) the total assets held by the owner in all retirement savings arrangements referred to in section 20 would be commutable upon termination of employment if they were held in a pension fund under a pension plan that permitted payment of the commuted value of the pension benefit in accordance with section 34 of the Act, and
(b) the total of the pension adjustments reported to the owner by the Canada Customs and Revenue Agency for the two taxation years immediately preceding the request for withdrawal is zero.
93-144; 94-78; 2001-1; 2002, c.12, s.32; 2003-87; 2007-86; 2011-60; 2015-59
Transfer to locked-in retirement account
21(1)In this section and in section 22
“owner” means the person the commuted value of whose benefit has been transferred in whole or in part into a retirement savings arrangement referred to in section 20.
21(2)Subject to section 19, the following provisions apply to a contract between an owner and a financial institution acting as a trustee for a locked-in retirement account referred to in paragraph 20(a) and, if a conflict exists between this subsection and the terms of a contract, this subsection shall prevail:
(a) the only money that may be transferred into the account are the sums originating, directly or indirectly, from
(i) the fund of a pension plan that conforms with the Act and this Regulation or with similar legislation in another jurisdiction, if the money is being transferred under section 36 of the Act or under a similar provision in legislation in another jurisdiction,
(ii) another retirement savings arrangement that conforms with the Act and this Regulation, or
(iii) a life or deferred life annuity under a contract that conforms with the Act and this Regulation;
(b) except as provided for elsewhere in this Regulation, the balance of the money in the account, in whole or in part, may be converted at any time only into a life or deferred life annuity that conforms to section 23;
(c) if the owner dies before signing a contract under which an annuity is purchased under paragraph (b), the balance of the money in the account shall be paid
(i) to the spouse or common-law partner of the owner, unless the spouse or common-law partner waives on Form 3.02 all rights that he or she may have in the account under the Act, this Regulation or the contract,
(ii) if the owner has a spouse or common-law partner who has waived all rights under subparagraph (i) or if the owner does not have a spouse or common-law partner, to a beneficiary on death designated by the owner, or
(iii) if the owner has a spouse or common-law partner who has waived all rights under subparagraph (i) or if the owner does not have a spouse or common-law partner and if the owner has not designated a beneficiary on death, to the estate of the owner;
(d) the owner may withdraw the balance of the money in the account, in whole or in part, and receive a payment or series of payments if
(i) a physician certifies in writing to the financial institution that is a party to the contract that the owner suffers from a significant physical or mental disability that considerably reduces life expectancy, and
(ii) if the owner has a spouse or common-law partner, the owner delivers to the financial institution a waiver completed by the spouse or common-law partner in Form 3.01;
(e) the owner may withdraw an amount from the account if
(i) the amount is withdrawn to reduce the amount of tax that would otherwise be payable under Part X.1 of the Income Tax Act (Canada) by the owner, and
(ii) the financial institution, notwithstanding section 20, establishes a sub-account, that is not a registered retirement savings plan, of the locked-in retirement account, and the owner deposits the amount withdrawn, less any amount required to be withheld by the financial institution under the Income Tax Act (Canada), into the sub-account;
(f) unless the contract provides for an early cashing-in value before the expiration of the term agreed to for the investment, the owner is entitled at any time after the term has expired
(i) to transfer before a conversion referred to in paragraph (b), the balance of the money in the account, in whole or in part, to the pension fund of a pension plan that conforms with the Act and this Regulation or with similar legislation in another jurisdiction or to a retirement savings arrangement that conforms with the Act and this Regulation, or
(ii) to convert the balance of the money in the account, in whole or in part, into a life or deferred life annuity that conforms to section 23;
(f.1) the owner shall not be entitled to make a transfer under subparagraph (f)(i) to a pension plan that is not registered in the Province unless
(i) the pension plan is registered for persons employed in a designated jurisdiction, and
(ii) the owner is employed in that jurisdiction by an employer who is making contributions on behalf of the owner to the pension fund that is to receive the amount to be transferred;
(g) subsections (8.1) to (11) apply to paragraph (f) with the necessary modifications, including any necessary modifications to Form 3.2;
(g.1) the owner may withdraw the balance of the money in the account if
(i) the owner and his or her spouse or common-law partner, if any, are not Canadian citizens,
(ii) the owner and his or her spouse or common-law partner, if any, are not resident in Canada for the purposes of the Income Tax Act (Canada), and
(iii) the owner’s spouse or common-law partner, if any, waives, on Form 3.5, any rights that he or she may have in the account under the Act, this Regulation or the contract;
(h) the commuted value of the owner’s benefits provided under the contract shall be determined in accordance with the Act and this Regulation if it is divided under section 44 of the Act;
(i) no money transferred, including interest, shall be assigned, charged, anticipated, given as security or subjected to execution, seizure, attachment or other process of law except under section 44 of the Act or subsection 57(6) of the Act;
(j) a transaction in contravention of paragraph (i) is void;
(k) no money transferred, including interest, shall be commuted or surrendered during the lifetime of the owner except under paragraph (d) or (e), section 44 of the Act or subsection 57(6) of the Act;
(l) a transaction in contravention of paragraph (k) is void;
(m) an amendment to the contract shall not be made
(i) that would result in a reduction of the benefits arising from the contract unless the owner is entitled, before the effective date of the amendment, to transfer the balance of the money in the account in accordance with paragraph (f) and, unless a notice is delivered to the owner at least ninety days before the effective date, describing the amendment and the date on which the owner may exercise the entitlement to transfer,
(ii) unless the contract as amended remains in conformity with the Act and this Regulation, or
(iii) except to bring the contract into conformity with requirements under an Act of the Legislature or other legislation in another jurisdiction;
(n) a transfer under subparagraph (f)(i) or (m)(i) may, at the option of the financial institution that is a party to the contract and if not otherwise stipulated in the contract, be effected by the remittance to the owner of the investment securities respecting the account;
(o) unless the contract provides for an early cashing-in value before the expiration of the term agreed to for the investments, if there is money invested in the account that may be transferred under subparagraph (f)(i) or (m)(i), such funds shall be transferred no more than thirty days after the owner’s application for the transfer; and
(p) sections 27 to 33 apply with the necessary modifications to the division of the money in the account on the breakdown of a marriage or common-law partnership.
21(3)Repealed: 2001-1
21(4)If the information provided on Form 3.2 indicates that the commuted value transferred was determined on transfer in a manner that differentiated, while the owner of the account was a member of the plan, on the basis of the sex of the owner, the only money that may subsequently be transferred into the account is money that is also differentiated on the same basis.
21(5)No money, including interest, transferred under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act to a locked-in retirement account shall subsequently be used to purchase a life or deferred life annuity that differentiates on the basis of the annuitant’s sex, unless the commuted value of the deferred pension transferred from the plan into the account was determined on transfer in a manner that differentiated, while the owner of the account was a member of the plan, on the basis of sex of the owner.
21(6)A financial institution that is authorized to offer registered retirement savings plans and that proposes to act under a contract as a transferee of a locked-in retirement account referred to in paragraph 20(a) shall register as a trustee for the proposed locked-in retirement account by filing a completed Form 3.1 with the Superintendent and paying the prescribed fee.
21(7)The Superintendent may refuse to register a financial institution as the trustee of a locked-in retirement account referred to in paragraph 20(a) if the financial institution does not comply with the Act and this Regulation.
21(7.1)The Superintendent may revoke or suspend a financial institution’s registration as the trustee of a locked-in retirement account referred to in paragraph 20(a) if the financial institution does not comply with the Act and this Regulation.
21(7.2)If a financial institution’s registration as the trustee of a locked-in retirement account referred to in paragraph 20(a) is revoked or suspended, the account shall continue to be subject to the requirements of the Act and this Regulation until all the assets of the account have been dispersed or transferred.
21(7.3)A financial institution shall file with the Superintendent a sample commercial copy of every form and contract that it uses with its clients with respect to a locked-in retirement account referred to in paragraph 20(a), including any amended form or contract, within sixty days of the commencement of its use.
21(8)Repealed: 2001-1
21(8.1)Before transferring money to a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, an administrator shall complete Part II of Form 3.2 and ensure that the owner and the financial institution have completed the appropriate portions of Part I of Form 3.2.
21(8.2)Before accepting a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, a financial institution shall complete Part III of Form 3.2 and ensure that the owner and the administrator have completed the appropriate portions of Parts I and II of Form 3.2.
21(9)An administrator shall not transfer money to a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act unless
(a) the financial institution that the money is being transferred to is registered as the trustee of the locked-in retirement account, and
(b) Form 3.2, completed in accordance with subsection (8.1), is forwarded with the money to the financial institution.
21(10)A financial institution shall not accept a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act unless the financial institution has complied with subsection (8.2).
21(11)An administrator and a financial institution shall each retain their copies of Form 3.2 until ninety-three years after the birth of the owner.
21(12)A financial institution that registers or applies to register a standard contract with the Superintendent before February 1, 2001, shall be deemed to have complied with subsection (6) and shall be registered as the trustee of a locked-in retirement account under that subsection.
21(13)Notwithstanding subsection (9), before January 1, 2002, an administrator may transfer money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act without completing Form 3.2 if the locked-in retirement account is with a financial institution to which subsection (12) applies.
21(14)Notwithstanding subsection (10), before January 1, 2002, a financial institution to which subsection (12) applies may accept a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act without completing Form 3.2.
21(15)Notwithstanding any provision of the Act or this Regulation, a financial institution may permit an owner to withdraw the balance of a locked-in retirement account referred to in paragraph 20(a) if
(a) the owner requests that the balance be withdrawn by delivering a completed Form 3.6, and a completed Form 3.7 where applicable, to the financial institution, and
(b) the financial institution is satisfied, based upon the information provided in Forms 3.6 and 3.7 and any other information that has been requested by the financial institution, that
(i) the reported present distribution of assets transferred from pension funds connected with employment in the Province is consistent with the amounts reported to have been transferred from such pension funds, and
(ii) the requested withdrawal is permitted under subsection (16).
21(16)An owner may withdraw the balance of a locked-in retirement account referred to in paragraph 20(a) if
(a) the total assets held by the owner in all retirement savings arrangements referred to in section 20 would be commutable upon termination of employment if they were held in a pension fund under a pension plan that permitted payment of the commuted value of the pension benefit in accordance with section 34 of the Act, and
(b) the total of the pension adjustments reported to the owner by the Canada Customs and Revenue Agency for the two taxation years immediately preceding the request for withdrawal is zero.
93-144; 94-78; 2001-1; 2002, c.12, s.32; 2003-87; 2007-86; 2011-60
Transfer to locked-in retirement account
21(1)In this section and in section 22
“owner” means the person the commuted value of whose benefit has been transferred in whole or in part into a retirement savings arrangement referred to in section 20.
21(2)Subject to section 19, the following provisions apply to a contract between an owner and a financial institution acting as a trustee for a locked-in retirement account referred to in paragraph 20(a) and, if a conflict exists between this subsection and the terms of a contract, this subsection shall prevail:
(a) the only money that may be transferred into the account are the sums originating, directly or indirectly, from
(i) the fund of a pension plan that conforms with the Act and this Regulation or with similar legislation in another jurisdiction, if the money is being transferred under section 36 of the Act or under a similar provision in legislation in another jurisdiction,
(ii) another retirement savings arrangement that conforms with the Act and this Regulation, or
(iii) a life or deferred life annuity under a contract that conforms with the Act and this Regulation;
(b) except as provided for elsewhere in this Regulation, the balance of the money in the account, in whole or in part, may be converted at any time only into a life or deferred life annuity that conforms to section 23;
(c) if the owner dies before signing a contract under which an annuity is purchased under paragraph (b), the balance of the money in the account shall be paid
(i) to the spouse or common-law partner of the owner, unless the spouse or common-law partner waives on Form 3.02 all rights that he or she may have in the account under the Act, this Regulation or the contract,
(ii) if the owner has a spouse or common-law partner who has waived all rights under subparagraph (i) or if the owner does not have a spouse or common-law partner, to a beneficiary on death designated by the owner, or
(iii) if the owner has a spouse or common-law partner who has waived all rights under subparagraph (i) or if the owner does not have a spouse or common-law partner and if the owner has not designated a beneficiary on death, to the estate of the owner;
(d) the owner may withdraw the balance of the money in the account, in whole or in part, and receive a payment or series of payments if
(i) a physician certifies in writing to the financial institution that is a party to the contract that the owner suffers from a significant physical or mental disability that considerably reduces life expectancy, and
(ii) if the owner has a spouse or common-law partner, the owner delivers to the financial institution a waiver completed by the spouse or common-law partner in Form 3.01;
(e) the owner may withdraw an amount from the account if
(i) the amount is withdrawn to reduce the amount of tax that would otherwise be payable under Part X.1 of the Income Tax Act (Canada) by the owner, and
(ii) the financial institution, notwithstanding section 20, establishes a sub-account, that is not a registered retirement savings plan, of the locked-in retirement account, and the owner deposits the amount withdrawn, less any amount required to be withheld by the financial institution under the Income Tax Act (Canada), into the sub-account;
(f) unless the contract provides for an early cashing-in value before the expiration of the term agreed to for the investment, the owner is entitled at any time after the term has expired
(i) to transfer before a conversion referred to in paragraph (b), the balance of the money in the account, in whole or in part, to the pension fund of a pension plan that conforms with the Act and this Regulation or with similar legislation in another jurisdiction or to a retirement savings arrangement that conforms with the Act and this Regulation, or
(ii) to convert the balance of the money in the account, in whole or in part, into a life or deferred life annuity that conforms to section 23;
(f.1) the owner shall not be entitled to make a transfer under subparagraph (f)(i) to a pension plan that is not registered in the Province unless
(i) the pension plan is registered for persons employed in a designated jurisdiction, and
(ii) the owner is employed in that jurisdiction by an employer who is making contributions on behalf of the owner to the pension fund that is to receive the amount to be transferred;
(g) subsections (8.1) to (11) apply to paragraph (f) with the necessary modifications, including any necessary modifications to Form 3.2;
(g.1) the owner may withdraw the balance of the money in the account if
(i) the owner and his or her spouse or common-law partner, if any, are not Canadian citizens,
(ii) the owner and his or her spouse or common-law partner, if any, are not resident in Canada for the purposes of the Income Tax Act (Canada), and
(iii) the owner’s spouse or common-law partner, if any, waives, on Form 3.5, any rights that he or she may have in the account under the Act, this Regulation or the contract;
(h) the commuted value of the owner’s benefits provided under the contract shall be determined in accordance with the Act and this Regulation if it is divided under section 44 of the Act;
(i) no money transferred, including interest, shall be assigned, charged, anticipated, given as security or subjected to execution, seizure, attachment or other process of law except under section 44 of the Act or subsection 57(6) of the Act;
(j) a transaction in contravention of paragraph (i) is void;
(k) no money transferred, including interest, shall be commuted or surrendered during the lifetime of the owner except under paragraph (d) or (e), section 44 of the Act or subsection 57(6) of the Act;
(l) a transaction in contravention of paragraph (k) is void;
(m) an amendment to the contract shall not be made
(i) that would result in a reduction of the benefits arising from the contract unless the owner is entitled, before the effective date of the amendment, to transfer the balance of the money in the account in accordance with paragraph (f) and, unless a notice is delivered to the owner at least ninety days before the effective date, describing the amendment and the date on which the owner may exercise the entitlement to transfer,
(ii) unless the contract as amended remains in conformity with the Act and this Regulation, or
(iii) except to bring the contract into conformity with requirements under an Act of the Legislature or other legislation in another jurisdiction;
(n) a transfer under subparagraph (f)(i) or (m)(i) may, at the option of the financial institution that is a party to the contract and if not otherwise stipulated in the contract, be effected by the remittance to the owner of the investment securities respecting the account;
(o) unless the contract provides for an early cashing-in value before the expiration of the term agreed to for the investments, if there is money invested in the account that may be transferred under subparagraph (f)(i) or (m)(i), such funds shall be transferred no more than thirty days after the owner’s application for the transfer; and
(p) sections 27 to 33 apply with the necessary modifications to the division of the money in the account on the breakdown of a marriage or common-law partnership.
21(3)Repealed: 2001-1
21(4)If the information provided on Form 3.2 indicates that the commuted value transferred was determined on transfer in a manner that differentiated, while the owner of the account was a member of the plan, on the basis of the sex of the owner, the only money that may subsequently be transferred into the account is money that is also differentiated on the same basis.
21(5)No money, including interest, transferred under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act to a locked-in retirement account shall subsequently be used to purchase a life or deferred life annuity that differentiates on the basis of the annuitant’s sex, unless the commuted value of the deferred pension transferred from the plan into the account was determined on transfer in a manner that differentiated, while the owner of the account was a member of the plan, on the basis of sex of the owner.
21(6)A financial institution that is authorized to offer registered retirement savings plans and that proposes to act under a contract as a transferee of a locked-in retirement account referred to in paragraph 20(a) shall register as a trustee for the proposed locked-in retirement account by filing a completed Form 3.1 with the Superintendent and paying the prescribed fee.
21(7)The Superintendent may refuse to register a financial institution as the trustee of a locked-in retirement account referred to in paragraph 20(a) if the financial institution does not comply with the Act and this Regulation.
21(7.1)The Superintendent may revoke or suspend a financial institution’s registration as the trustee of a locked-in retirement account referred to in paragraph 20(a) if the financial institution does not comply with the Act and this Regulation.
21(7.2)If a financial institution’s registration as the trustee of a locked-in retirement account referred to in paragraph 20(a) is revoked or suspended, the account shall continue to be subject to the requirements of the Act and this Regulation until all the assets of the account have been dispersed or transferred.
21(7.3)A financial institution shall file with the Superintendent a sample commercial copy of every form and contract that it uses with its clients with respect to a locked-in retirement account referred to in paragraph 20(a), including any amended form or contract, within sixty days of the commencement of its use.
21(8)Repealed: 2001-1
21(8.1)Before transferring money to a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, an administrator shall complete Part II of Form 3.2 and ensure that the owner and the financial institution have completed the appropriate portions of Part I of Form 3.2.
21(8.2)Before accepting a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, a financial institution shall complete Part III of Form 3.2 and ensure that the owner and the administrator have completed the appropriate portions of Parts I and II of Form 3.2.
21(9)An administrator shall not transfer money to a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act unless
(a) the financial institution that the money is being transferred to is registered as the trustee of the locked-in retirement account, and
(b) Form 3.2, completed in accordance with subsection (8.1), is forwarded with the money to the financial institution.
21(10)A financial institution shall not accept a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act unless the financial institution has complied with subsection (8.2).
21(11)An administrator and a financial institution shall each retain their copies of Form 3.2 until ninety-three years after the birth of the owner.
21(12)A financial institution that registers or applies to register a standard contract with the Superintendent before February 1, 2001, shall be deemed to have complied with subsection (6) and shall be registered as the trustee of a locked-in retirement account under that subsection.
21(13)Notwithstanding subsection (9), before January 1, 2002, an administrator may transfer money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act without completing Form 3.2 if the locked-in retirement account is with a financial institution to which subsection (12) applies.
21(14)Notwithstanding subsection (10), before January 1, 2002, a financial institution to which subsection (12) applies may accept a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act without completing Form 3.2.
21(15)Notwithstanding any provision of the Act or this Regulation, a financial institution may permit an owner to withdraw the balance of a locked-in retirement account referred to in paragraph 20(a) if
(a) the owner requests that the balance be withdrawn by delivering a completed Form 3.6, and a completed Form 3.7 where applicable, to the financial institution, and
(b) the financial institution is satisfied, based upon the information provided in Forms 3.6 and 3.7 and any other information that has been requested by the financial institution, that
(i) the reported present distribution of assets transferred from pension funds connected with employment in the Province is consistent with the amounts reported to have been transferred from such pension funds, and
(ii) the requested withdrawal is permitted under subsection (16).
21(16)An owner may withdraw the balance of a locked-in retirement account referred to in paragraph 20(a) if
(a) the total assets held by the owner in all retirement savings arrangements referred to in section 20 would be commutable upon termination of employment if they were held in a pension fund under a pension plan that permitted payment of the commuted value of the pension benefit in accordance with section 34 of the Act, and
(b) the total of the pension adjustments reported to the owner by the Canada Customs and Revenue Agency for the two taxation years immediately preceding the request for withdrawal is zero.
93-144; 94-78; 2001-1; 2002, c.12, s.32; 2003-87; 2007-86; 2011-60
Transfer to locked-in retirement account
21(1)In this section and in section 22
“owner” means the person the commuted value of whose benefit has been transferred in whole or in part into a retirement savings arrangement referred to in section 20.
21(2)Subject to section 19, the following provisions apply to a contract between an owner and a financial institution acting as a trustee for a locked-in retirement account referred to in paragraph 20(a) and, if a conflict exists between this subsection and the terms of a contract, this subsection shall prevail:
(a) the only money that may be transferred into the account are the sums originating, directly or indirectly, from
(i) the fund of a pension plan that conforms with the Act and this Regulation or with similar legislation in another jurisdiction, if the money is being transferred under section 36 of the Act or under a similar provision in legislation in another jurisdiction,
(ii) another retirement savings arrangement that conforms with the Act and this Regulation, or
(iii) a life or deferred life annuity under a contract that conforms with the Act and this Regulation;
(b) except as provided for elsewhere in this Regulation, the balance of the money in the account, in whole or in part, may be converted at any time only into a life or deferred life annuity that conforms to section 23;
(c) if the owner dies before signing a contract under which an annuity is purchased under paragraph (b), the balance of the money in the account shall be paid
(i) to the owner’s spouse, unless the spouse waives on Form 3.02 all rights that he or she may have in the account under the Act, this Regulation or the contract,
(ii) if the owner has a spouse who has waived all rights under subparagraph (i) or if the owner does not have a spouse, to a beneficiary on death designated by the owner, or
(iii) if the owner has a spouse who has waived all rights under subparagraph (i) or if the owner does not have a spouse and if the owner has not designated a beneficiary on death, to the estate of the owner;
(d) the owner may withdraw the balance of the money in the account, in whole or in part, and receive a payment or series of payments if
(i) a physician certifies in writing to the financial institution that is a party to the contract that the owner suffers from a significant physical or mental disability that considerably reduces life expectancy, and
(ii) if the owner has a spouse, the owner delivers to the financial institution a completed spousal waiver in Form 3.01;
(e) the owner may withdraw an amount from the account if
(i) the amount is withdrawn to reduce the amount of tax that would otherwise be payable under Part X.1 of the Income Tax Act (Canada) by the owner, and
(ii) the financial institution, notwithstanding section 20, establishes a sub-account, that is not a registered retirement savings plan, of the locked-in retirement account, and the owner deposits the amount withdrawn, less any amount required to be withheld by the financial institution under the Income Tax Act (Canada), into the sub-account;
(f) unless the contract provides for an early cashing-in value before the expiration of the term agreed to for the investment, the owner is entitled at any time after the term has expired
(i) to transfer before a conversion referred to in paragraph (b), the balance of the money in the account, in whole or in part, to the pension fund of a pension plan that conforms with the Act and this Regulation or with similar legislation in another jurisdiction or to a retirement savings arrangement that conforms with the Act and this Regulation, or
(ii) to convert the balance of the money in the account, in whole or in part, into a life or deferred life annuity that conforms to section 23;
(f.1) the owner shall not be entitled to make a transfer under subparagraph (f)(i) to a pension plan that is not registered in the Province unless
(i) the pension plan is registered for persons employed in a designated jurisdiction, and
(ii) the owner is employed in that jurisdiction by an employer who is making contributions on behalf of the owner to the pension fund that is to receive the amount to be transferred;
(g) subsections (8.1) to (11) apply to paragraph (f) with the necessary modifications, including any necessary modifications to Form 3.2;
(g.1) the owner may withdraw the balance of the money in the account if
(i) the owner and his or her spouse, if any, are not Canadian citizens,
(ii) the owner and his or her spouse, if any, are not resident in Canada for the purposes of the Income Tax Act (Canada), and
(iii) the owner’s spouse, if any, waives, on Form 3.5, any rights that he or she may have in the account under the Act, this Regulation or the contract;
(h) the commuted value of the owner’s benefits provided under the contract shall be determined in accordance with the Act and this Regulation if it is divided under section 44 of the Act;
(i) no money transferred, including interest, shall be assigned, charged, anticipated, given as security or subjected to execution, seizure, attachment or other process of law except under section 44 of the Act or subsection 57(6) of the Act;
(j) a transaction in contravention of paragraph (i) is void;
(k) no money transferred, including interest, shall be commuted or surrendered during the lifetime of the owner except under paragraph (d) or (e), section 44 of the Act or subsection 57(6) of the Act;
(l) a transaction in contravention of paragraph (k) is void;
(m) an amendment to the contract shall not be made
(i) that would result in a reduction of the benefits arising from the contract unless the owner is entitled, before the effective date of the amendment, to transfer the balance of the money in the account in accordance with paragraph (f) and, unless a notice is delivered to the owner at least ninety days before the effective date, describing the amendment and the date on which the owner may exercise the entitlement to transfer,
(ii) unless the contract as amended remains in conformity with the Act and this Regulation, or
(iii) except to bring the contract into conformity with requirements under an Act of the Legislature or other legislation in another jurisdiction;
(n) a transfer under subparagraph (f)(i) or (m)(i) may, at the option of the financial institution that is a party to the contract and if not otherwise stipulated in the contract, be effected by the remittance to the owner of the investment securities respecting the account;
(o) unless the contract provides for an early cashing-in value before the expiration of the term agreed to for the investments, if there is money invested in the account that may be transferred under subparagraph (f)(i) or (m)(i), such funds shall be transferred no more than thirty days after the owner’s application for the transfer; and
(p) sections 27 to 33 apply with the necessary modifications to the division on marriage breakdown of the money in the account.
21(3)Repealed: 2001-1
21(4)If the information provided on Form 3.2 indicates that the commuted value transferred was determined on transfer in a manner that differentiated, while the owner of the account was a member of the plan, on the basis of the sex of the owner, the only money that may subsequently be transferred into the account is money that is also differentiated on the same basis.
21(5)No money, including interest, transferred under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act to a locked-in retirement account shall subsequently be used to purchase a life or deferred life annuity that differentiates on the basis of the annuitant’s sex, unless the commuted value of the deferred pension transferred from the plan into the account was determined on transfer in a manner that differentiated, while the owner of the account was a member of the plan, on the basis of sex of the owner.
21(6)A financial institution that is authorized to offer registered retirement savings plans and that proposes to act under a contract as a transferee of a locked-in retirement account referred to in paragraph 20(a) shall register as a trustee for the proposed locked-in retirement account by filing a completed Form 3.1 with the Superintendent and paying the prescribed fee.
21(7)The Superintendent may refuse to register a financial institution as the trustee of a locked-in retirement account referred to in paragraph 20(a) if the financial institution does not comply with the Act and this Regulation.
21(7.1)The Superintendent may revoke or suspend a financial institution’s registration as the trustee of a locked-in retirement account referred to in paragraph 20(a) if the financial institution does not comply with the Act and this Regulation.
21(7.2)If a financial institution’s registration as the trustee of a locked-in retirement account referred to in paragraph 20(a) is revoked or suspended, the account shall continue to be subject to the requirements of the Act and this Regulation until all the assets of the account have been dispersed or transferred.
21(7.3)A financial institution shall file with the Superintendent a sample commercial copy of every form and contract that it uses with its clients with respect to a locked-in retirement account referred to in paragraph 20(a), including any amended form or contract, within sixty days of the commencement of its use.
21(8)Repealed: 2001-1
21(8.1)Before transferring money to a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, an administrator shall complete Part II of Form 3.2 and ensure that the owner and the financial institution have completed the appropriate portions of Part I of Form 3.2.
21(8.2)Before accepting a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act, a financial institution shall complete Part III of Form 3.2 and ensure that the owner and the administrator have completed the appropriate portions of Parts I and II of Form 3.2.
21(9)An administrator shall not transfer money to a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act unless
(a) the financial institution that the money is being transferred to is registered as the trustee of the locked-in retirement account, and
(b) Form 3.2, completed in accordance with subsection (8.1), is forwarded with the money to the financial institution.
21(10)A financial institution shall not accept a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act unless the financial institution has complied with subsection (8.2).
21(11)An administrator and a financial institution shall each retain their copies of Form 3.2 until ninety-three years after the birth of the owner.
21(12)A financial institution that registers or applies to register a standard contract with the Superintendent before February 1, 2001, shall be deemed to have complied with subsection (6) and shall be registered as the trustee of a locked-in retirement account under that subsection.
21(13)Notwithstanding subsection (9), before January 1, 2002, an administrator may transfer money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act without completing Form 3.2 if the locked-in retirement account is with a financial institution to which subsection (12) applies.
21(14)Notwithstanding subsection (10), before January 1, 2002, a financial institution to which subsection (12) applies may accept a transfer of money into a locked-in retirement account under subparagraph 36(1)(a)(ii) of the Act or subsection 36(1.1) of the Act without completing Form 3.2.
21(15)Notwithstanding any provision of the Act or this Regulation, a financial institution may permit an owner to withdraw the balance of a locked-in retirement account referred to in paragraph 20(a) if
(a) the owner requests that the balance be withdrawn by delivering a completed Form 3.6, and a completed Form 3.7 where applicable, to the financial institution, and
(b) the financial institution is satisfied, based upon the information provided in Forms 3.6 and 3.7 and any other information that has been requested by the financial institution, that
(i) the reported present distribution of assets transferred from pension funds connected with employment in the Province is consistent with the amounts reported to have been transferred from such pension funds, and
(ii) the requested withdrawal is permitted under subsection (16).
21(16)An owner may withdraw the balance of a locked-in retirement account referred to in paragraph 20(a) if
(a) the total assets held by the owner in all retirement savings arrangements referred to in section 20 would be commutable upon termination of employment if they were held in a pension fund under a pension plan that permitted payment of the commuted value of the pension benefit in accordance with section 34 of the Act, and
(b) the total of the pension adjustments reported to the owner by the Canada Customs and Revenue Agency for the two taxation years immediately preceding the request for withdrawal is zero.
93-144; 94-78; 2001-1; 2002, c.12, s.32; 2003-87; 2007-86