SOR-2012-294 Pooled Registered Pension Plans Regulations

an individual of whom the person is the legal parent;

an individual who is wholly dependent on the person for support and of whom the person has, or immediately before the individual attained the age of 19 years had, in law or in fact, the custody and control;

a child of the person’s spouse or common-law partner; and

a spouse or common-law partner of a child of the person. (enfant)

a corporation, trust, partnership or fund or an unincorporated association or organization; or

Her Majesty in right of Canada or of a province or the government of a foreign country or of a political subdivision of a foreign country, or an agency of any of them. (entité)

an exchange;

a quotation and trade-reporting system;

any other entity not included in paragraph (a) or (b) that

an officer, an employee or a member of the board of directors of the administrator of the PRPP;

responsible for holding or investing the assets of the PRPP, or an officer, director or employee of the person who is responsible for holding or investing those assets;

a member of the PRPP;

the spouse or common-law partner or a child of any person referred to in any of paragraphs (a) to (c);

a corporation that is directly or indirectly controlled by a person referred to in any of paragraphs (a) to (d);

an entity in which a person referred to in paragraph (a) or (b), or the spouse or common-law partner or a child of such a person, has a substantial investment; or

an entity that has a substantial investment in the administrator of the PRPP. (apparenté)

in respect of a corporation, a share of any class of shares of the corporation or a debt obligation of the corporation, and includes a warrant of the corporation, but does not include a deposit with a financial institution or a document evidencing such a deposit; and

in respect of any other entity, any ownership interest in or debt obligation of the entity. (titre ou valeur mobilière)

a person or an administrator of a PRPP controls a corporation if securities of the corporation to which are attached more than 50% of the votes that may be cast to elect the directors of the corporation are beneficially owned by the person or the administrator and the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the corporation;

a person or an administrator of a PRPP controls an unincorporated entity, other than a limited partnership, if more than 50% of the ownership interests into which the unincorporated entity is divided are beneficially owned by the person or the administrator and the person or the administrator is able to direct the business and affairs of the unincorporated entity;

the general partner of a limited partnership controls the limited partnership; and

a trustee of a trust controls the trust.

an unincorporated entity if the person or the administrator, or an entity controlled by the person or the administrator, beneficially owns more than 25% of the ownership interests in the unincorporated entity; and

a corporation if

a corporation that the person or the administrator controls and every affiliate of every such corporation;

a person who controls the person or the administrator;

a partner who has a substantial investment in a partnership in which the person or the administrator has a substantial investment;

a trust or estate or succession in which the person or the administrator has a substantial investment or for which the person or the administrator serves as a trustee or in a similar capacity to a trustee;

the spouse or common-law partner of the person; and

a brother, sister or child or other descendant of the person, or the spouse or common-law partner of any of them.

Ontario;

Quebec;

Nova Scotia;

New Brunswick;

Manitoba;

British Columbia;

Saskatchewan.

for Ontario, the Superintendent of Financial Services appointed under section 5 of the Financial Services Commission of Ontario Act, 1997, S.O. 1997, c. 28;

for Quebec, the Autorité des marchés financiers established under section 1 of An Act respecting the Autorité des marchés financiers, CQLR, c. A-33.2;

for Nova Scotia, the Superintendent of Pooled Registered Pension Plans appointed under section 6 of the Pooled Registered Pension Plans Act, S.N.S. 2014, c. 37;

for New Brunswick, the Superintendent of Pooled Registered Pension Plans appointed under paragraph 18(2)(e.1) of the Financial and Consumer Services Commission Act, S.N.B. 2013, c. 30;

for Manitoba, the Superintendent of Pensions employed under subsection 7(1) of The Pension Benefits Act, C.C.S.M. c. P32;

for British Columbia, the Superintendent of Pensions appointed under section 4 of the Pension Benefits Standards Act, S.B.C. 2012, c. 30; and

for Saskatchewan, the Superintendent of Pooled Registered Pension Plans appointed under section 5 of the Pooled Registered Pension Plans (Saskatchewan) Act, S.S. 2013, c. P-16.101.

the corporation submits to the Superintendent a five-year business plan that includes

the corporation has the financial resources required for the administration of a PRPP;

the corporation has procedures in place that are sufficient to identify, manage and control the risks associated with the PRPPs;

the corporation has the operational capability to administer a PRPP;

the officers and directors of the corporation are of good character, having demonstrated honesty, integrity and ethical behaviour in all of their professional activities; and

the corporation provides, on the request of the Superintendent, any document or information required to assess whether the corporation meets the conditions set out in paragraphs (b) to (e).

invested in accordance with sections 9 to 14; and

invested

any one person;

associated persons; or

affiliated corporations.

in a mutual fund, a pooled fund or a segregated fund that meets the requirements applicable to a PRPP that are set out in section 10;

in an unallocated general fund of a person that is authorized to carry on a life insurance business in Canada;

that are made in accordance with sections 12 to 14 of Schedule III to the Pension Benefits Standards Regulations, 1985;

in securities issued or fully guaranteed by the Government of Canada, the government of a province, or an agency of either one of them;

in a fund composed of mortgage-backed securities that are fully guaranteed by the Government of Canada, the government of a province, or an agency of either one of them;

in a fund that replicates the composition of a widely recognized index of a broad class of securities that are traded at a marketplace; or

that involve the purchase of a contract or agreement in respect of which the return is based on the performance of a widely recognized index of a broad class of securities traded at a marketplace.

the making of an investment in securities;

the taking of an assignment of, or otherwise acquiring, a loan made by a third party;

the taking of a security interest in securities or a hypothec on securities; and

any modification, renewal or extension of a prior transaction.

if a transaction is entered into by, or on behalf of, a PRPP with a person who the administrator of the PRPP, or any person acting on the administrator’s behalf, knows will become a related party to the PRPP, the person is considered to be a related party of the PRPP in respect of the transaction; and

the fulfilment of an obligation under the terms of any transaction, including the payment of interest on a loan or deposit, is part of the transaction and not a separate transaction.

lend funds in a member’s account to a related party or invest those funds in the securities of a related party; or

enter into a transaction with a related party on behalf of the PRPP.

lend funds in a member’s account to that person or invest those funds in the securities of that person; or

enter into a transaction with that person on behalf of the PRPP.

held by a mutual fund, a pooled fund or a segregated fund

held by a fund that replicates the composition of a widely recognized index of a broad class of securities traded at a marketplace; or

issued or fully guaranteed by the Government of Canada, the government of a province or an agency of either one of them.

investments in a corporation that are held by, or on behalf of, a PRPP as a result of an arrangement, within the meaning of subsection 192(1) of the Canada Business Corporations Act, for the reorganization or liquidation of the corporation or for the amalgamation of the corporation with another corporation, if the investments are to be exchanged for shares or debt obligations; or

assets that are acquired by, or on behalf of, a PRPP through the realization of a security interest or a hypothec held by, or on behalf of, the PRPP and that are held for a period not exceeding two years after the day on which the assets were acquired.

a balanced fund; or

a portfolio of investments that takes into account a member’s age.

no more than six investment options including the default option in the PRPP; and

the same investment options to all members of the PRPP.

for each investment option that is still available, include the description required under paragraph 23(c);

indicate that the member has 60 days after the day on which the notice is received to choose another option; and

indicate the administrator’s obligations under subsection (2) if the member does not choose another option within that period.

a product or a service on more favourable terms or conditions than the administrator would otherwise offer if the inducement is for the equal benefit of the employees of that employer who are eligible to be members of the PRPP; or

in relation to a transfer of assets into the PRPP administered by the administrator, an amount no greater than the employer’s costs associated with the transfer of assets into that PRPP.

costs are to be at or below those incurred by members of defined contribution plans that provide investment options to groups of 500 or more members; and

costs are to be the same for all members of a PRPP.

the member’s name and contact information and the name of the member’s employer; and

the period for which the contribution rate is to be set at 0%.

no more than 60 days after the day on which the administrator is notified under subsection 45(2) of the Act

no fewer than 90 days before the day on which contributions are to resume, provide the member with written notice of the day of resumption and the contribution rate on resumption.

inform the employees that once the employer enters into the contract with the administrator the employees will be automatically enrolled and become members of the PRPP;

inform the employees of the notice requirement under subsection 41(2) of the Act and who will send the notice;

inform the employees of a member’s right to terminate their membership in the PRPP by notifying the employer within 60 days after the day on which the notice that is referred to in subsection 41(2) of the Act is received; and

inform the employees of the existence of any deposit accounts, loans, letters of credit or insurance policies that are held by the employer with the administrator.

inform the employee of the notice requirements set out in section 29 and include a form that would meet those requirements if completed by the employee;

indicate that, if an administrator offers investment options and a member has not communicated an investment choice within 60 days after receiving the notice, the default option will apply;

include a description of each investment option that indicates

indicate the contribution rates offered to members;

indicate the default contribution rate if a member does not make a choice;

indicate the employer’s contribution rate;

indicate the date when contributions will begin to be deducted;

explain the members’ right to set their contribution rate to zero;

explain how the contributions may be adjusted;

include a list of any fees, levies and other charges that would be triggered by a member’s actions;

list any other costs, expressed as a percentage or a fixed amount;

explain the locking-in provisions of the PRPP;

provide the address of the Financial Consumer Agency of Canada’s web page pertaining to the cost of PRPPs;

explain an employee’s right to opt back into the PRPP; and

explain how to obtain more information about the PRPP.

that each member and each employer shall be given on a website and, on request, directly to the member, a description of

that each member shall, if the PRPP provides for variable payments, be given a statement no more than 18 months before and no fewer than 6 months before the day on which the member reaches 55 years of age, that indicates

that each member will be given, on request, the details of any transactions that have occurred in the member’s account, including any fees, levies and other charges incurred.

the member’s investment option;

for the year, the opening balance, any contributions, the change in the investments’ value — net of costs — and the closing balance;

for a member who elects to receive variable payments,

a summary of any transactions in the year;

the name and a description of the benchmark that best reflects the composition of the member’s investment option as well as an explanation of the choice of that benchmark;

the performance history of the member’s investment option over 1, 3, 5 and 10 years compared to that of the benchmark;

the degree of risk associated with the investment option;

a statement that the investment option’s past performance is not necessarily an indication of its future performance;

any costs, expressed as a percentage or a fixed amount;

any fees, levies and other charges triggered by the member’s actions;

the member’s and employer’s contributions; and

the name of the member’s spouse or common-law partner or designated beneficiary, if any.

a list of the investment options offered by the administrator that identifies the default option;

the performance history of each investment option;

any costs, expressed as a percentage or a fixed amount;

a list of any fees, levies and other charges triggered by a member’s actions;

a statement of the PRPP’s total assets and of the amounts held in each investment option;

a statement of the asset allocation in each investment option and a list of the investments held in each investment option;

the default contribution rate set by the administrator;

a list of the employers who are participating in the PRPP;

the number of members in the PRPP;

an auditor’s report on the PRPP’s assets; and

a certificate of the administrator or of any person who prepared, compiled or filed any information on their behalf that certifies that the information provided to the Superintendent is accurate.

the date of the notice and the employee’s date of birth and signature; and

a statement that the employee has decided to terminate their membership in the PRPP.

for the current year, the opening balance, the contributions, the change in the investments’ value — net of costs — and the closing balance on the date of the termination or death;

the amount of any variable payments made from the account during that year;

a statement that the balance on the date of termination or death is not final and may change;

a summary of any transactions in that year; and

the transfer options available and information on how to transfer the funds.

an account if the member who holds the account has ceased to be a resident of Canada for at least two years and is no longer employed by an employer that is participating in the PRPP; and

an amount withdrawn from a member’s account where the withdrawal is required

a member has not notified the administrator of the amount to be paid as a variable payment for the calendar year within 90 days after the day on which the statement required under paragraph 57(1)(b) of the Act is received; or

the amount determined by the formula set out in subsection (2) for that year is less than that minimum amount.

provides that the funds may only be

provides that, on the death of the holder of the locked-in RRSP, the funds shall be paid to the holder’s survivor by

provides that, subject to subsection 53(3) of the Act, the funds, or any interest or right in those funds, shall not be transferred, charged, attached, anticipated or given as security and that any transaction appearing to do so is void or, in Quebec, null;

sets out the method of determining the value of the locked-in RRSP, including the valuation method used to establish its value on the death of the holder or on a transfer of assets;

provides that the holder of the locked-in RRSP may withdraw an amount from that plan up to the lesser of the amount determined by the formula set out in subsection (2) and 50% of the Year’s Maximum Pensionable Earnings minus any amount withdrawn in the calendar year under this paragraph or paragraph 39(1)(f), 40(1)(k) or 41(1)(k)

provides that the holder of the locked-in RRSP who has ceased to be a resident of Canada for at least two years may withdraw any amount from that plan; and

provides that, in the calendar year in which the holder of the locked-in RRSP reaches 55 years of age or in any subsequent calendar year, the funds may be paid to the holder in a lump sum if the holder

provide that the funds may only be

provide that, on the death of the holder of the restricted locked-in savings plan, the funds shall be paid to the holder’s survivor by

provide that, subject to subsection 53(3) of the Act, the funds, or any interest or right in those funds, shall not be transferred, charged, attached, anticipated or given as security and that any transaction appearing to do so is void or, in Quebec, null;

set out the method of determining the value of the restricted locked-in savings plan, including the valuation method used to establish its value on the death of the holder or on a transfer of assets;

provide that, in the calendar year in which the holder of the restricted locked-in savings plan reaches 55 years of age or in any subsequent calendar year, the funds may be paid to the holder in a lump sum if the holder

provide that the holder of the restricted locked-in savings plan may withdraw an amount from that plan up to the lesser of the amount determined by the formula set out in subsection 38(2) and 50% of the Year’s Maximum Pensionable Earnings minus any amount withdrawn in the calendar year under this paragraph or paragraph 38(1)(e), 40(1)(k) or 41(1)(k)

provide that the holder of the restricted locked-in savings plan who has ceased to be a resident of Canada for at least two years may withdraw any amount from that plan.

sets out the method of determining the value of the restricted life income fund, including the valuation method used to establish its value on the death of the holder or on a transfer of assets;

provides that the holder of the restricted life income fund shall, at the beginning of each calendar year or at any other time agreed to by the financial institution with whom the contract or arrangement was entered into, decide the amount to be paid out of the fund in that year;

provides that in the event that the holder of the restricted life income fund does not notify the financial institution with whom the contract or arrangement for the restricted life income fund was entered into of the amount to be paid out of the fund in a calendar year the minimum amount determined in accordance with the Income Tax Act shall be paid out in that year;

provides that for any calendar year before the calendar year in which the holder of the restricted life income fund reaches 90 years of age, the amount of income paid out of the life income fund shall not exceed the amount determined by the formula C/F where C is the balance in the holder’s account at the beginning of the calendar year, or if the balance at the beginning of the calendar year is zero, on the day on which the election was made; and F is the value, at the beginning of the calendar year, of an annual $1 payment, payable on January 1 of each year between the beginning of that calendar year and December 31 of the year in which the holder reaches 90 years of age, established using an interest rate that is for each of the first 15 years, not more than the monthly average yield on Government of Canada marketable bonds of maturity over 10 years, as published by the Bank of Canada, for the month of November before the beginning of each calendar year, and for any subsequent year, not more than 6%;

provides that, for the calendar year in which the contract or arrangement was entered into, the amount determined under paragraph (d) shall be multiplied by the number of months remaining in that year and then divided by 12, with any part of an incomplete month counting as one month;

provides that if on the day on which the restricted life income fund was established part of the fund was composed of funds that had been held in another restricted life income fund of the holder earlier in the calendar year in which the fund was established, the amount determined under paragraph (d) is deemed to be zero in respect of that part of the fund for that calendar year;

provides that the funds in the restricted life income fund may only be

provides that, on the death of the holder of the restricted life income fund, the funds shall be paid to the holder’s survivor by

provides that, subject to subsection 53(3) of the Act, the funds, or any interest or right in those funds, shall not be transferred, charged, attached, anticipated or given as security and that any transaction appearing to do so is void or, in Quebec, null;

provides that, in the calendar year in which the holder of the restricted life income fund reaches 55 years of age or in any subsequent calendar year, the funds may be paid to the holder in a lump sum if the holder

provides that the holder of the restricted life income fund may withdraw an amount from that fund up to the lesser of the amount determined by the formula set out in subsection 38(2) and 50% of the Year’s Maximum Pensionable Earnings minus any amount withdrawn in the calendar year under this paragraph or paragraph 38(1)(e), 39(1)(f) or 41(1)(k)

provides that, if the restricted life income fund is established in the calendar year in which the holder of the fund reaches 55 years of age or in any subsequent calendar year, the holder of the fund may transfer 50% of the funds in that fund to a registered retirement savings plan or a registered retirement income fund within 60 days after the day on which the restricted life income fund is established if

provides that the holder of the restricted life income fund who has ceased to be a resident of Canada for at least two years may withdraw any amount from that fund.

sets out the method of determining the value of the life income fund, including the valuation method used to establish its value on the death of the holder or on a transfer of assets;

provides that the holder of the life income fund shall, at the beginning of each calendar year or at any other time agreed to by the financial institution with whom the contract or arrangement was entered into, decide the amount to be paid out of the life income fund in that year;

provides that in the event that the holder of the life income fund does not notify the financial institution with whom the contract or arrangement for the life income fund was entered into of the amount to be paid out of the life income fund in a calendar year, the minimum amount determined in accordance with the Income Tax Act shall be paid out of the life income fund in that year;

provides that for any calendar year before the calendar year in which the holder of the life income fund reaches 90 years of age, the amount of income paid out of the life income fund shall not exceed the amount determined by the formula C/F where C is the balance in the holder’s account at the beginning of the calendar year, or if the balance at the beginning of the calendar year is zero, on the day on which the election was made; and F is the value, as at the beginning of the calendar year, of an annual $1 payment, payable on January 1 of each year between the beginning of that calendar year and December 31 of the year in which the holder reaches 90 years of age, established using an interest rate that is for each of the first 15 years, not more than the monthly average yield on Government of Canada marketable bonds of maturity over 10 years, as published by the Bank of Canada, for the month of November before the beginning of each calendar year, and for any subsequent year, not more than 6%;

provides that, for the calendar year in which the contract or arrangement was entered into, the amount determined under paragraph (d) shall be multiplied by the number of months remaining in that year and then divided by 12, with any part of an incomplete month counting as one month;

provides that if on the day on which the life income fund was established part of the life income fund was composed of funds that had been held in another life income fund of the holder earlier in the calendar year in which the fund was established, the amount determined under paragraph (d) is deemed to be zero in respect of that part of the life income fund for that calendar year;

provides that the funds in the life income fund may only be

provides that, on the death of the holder of the life income fund, the funds shall be paid to the holder’s survivor by

provides that, subject to subsection 53(3) of the Act, the funds or any interest or right in those funds, shall not be transferred, charged, attached, anticipated or given as security and that any transaction appearing to do so is void or, in Quebec, null;

provides that, in the calendar year in which the holder of the life income fund reaches 55 years of age or in any subsequent calendar year, the funds may be paid to the holder in a lump sum if the holder

provides that the holder of the life income fund may withdraw an amount from that fund up to the lesser of the amount determined by the formula set out in subsection 38(2) and 50% of the Year’s Maximum Pensionable Earnings minus any amount withdrawn in the calendar year under this paragraph or under paragraph 38(1)(e), 39(1)(f) or 40(1)(k)

provides that the holder of the life income fund who has ceased to be a resident of Canada for at least two years may withdraw any amount from that fund.

an immediate life annuity that provides that

a deferred life annuity that provides

of the addressee’s right to revoke their consent at any time;

of the addressee’s responsibility to inform the administrator of any changes the addressee makes to the designated information system including any changes made to the contact information for the designated information system; and

of the date when the consent takes effect.