Pension Benefits Amendment Act (Unlocking Pension Funds), 2009 Chudleigh, Ted — Bill 116 (39th Parliament, 1st Session)

Bill 116, 39-1

Ontario — Bills

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Bill 116, Pension Benefits Amendment Act (Unlocking Pension Funds), 2009

Chudleigh, Ted

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Acts affected

Original

[39] Bill 116 Original (PDF)

Bill 116 2008

An Act

to amend the Pension Benefits Act to allow transfers of locked-in pension funds

to registered retirement income funds

Note:

This Act amends the Pension Benefits Act. For the legislative history of the

Act, see the Table of Consolidated Public Statutes – Detailed Legislative

History on www.e-Laws.gov.on.ca.

Her Majesty, by and with the advice and consent of

the Legislative Assembly of the Province of Ontario, enacts as follows:

1. The Pension

Benefits Act is amended by adding the following section:

Transfer to RRIF

67.1

(1) Despite anything in

this Act or the regulations, a pension, deferred pension, pension benefit,

annuity or prescribed retirement savings arrangement to which a person is or

will be entitled may be transferred, in accordance with this section, to a

registered retirement income fund described in subsection (6).

Application for transfer

(2) An application for

a transfer under subsection (1) shall be made in the prescribed manner.

Minimum age

(3) A person may make a

transfer under subsection (1) if, when the person signs the application,

(

a) he or she is at least 55 years of age; or

(

b) if the pension plan provides for retirement at

an earlier age, he or she has attained that earlier age.

One transfer

(4) A person may make

a transfer under subsection (1) only once in respect of each pension, deferred

pension, pension benefit, annuity or prescribed retirement savings arrangement

described in that subsection.

Maximum amount

(5) The maximum amount

that may be transferred is 100 per cent of the commuted value of the fund or account

that the person is or will become entitled to, as calculated on the day the

application for the transfer is made, less,

(

a) any amounts that are or may become payable to

a person who, on the day the application for transfer is made, is a spouse of

the person applying for the transfer living separate and apart from him or her;

and

(

b) any

amounts that are required to be paid on or after the day the application for

transfer is made pursuant to any order of a court.

Requirement re RRIF

(6) The registered retirement income fund into which the

amount under subsection (5) is transferred must be established in accordance

with the Income Tax Act

(Canada) and must have no maximum withdrawal limits.

Direct transfer

(7) The amount under subsection (5) shall be transferred

directly from the fund or account into the registered retirement income fund.

Consent of spouse

(8) The Superintendent shall not permit the transfer under

subsection (1) unless the spouse, if any, of the person applying for the

transfer consents to the transfer.

Exception

(9) Subsection (8) does not apply if, at the time the

person applies for the transfer, the spouse is living separate and apart from

the person.

Commencement

2. This Act comes into force on the day it

receives Royal Assent.

Short title

3. The

short title of this Act is the Pension Benefits Amendment Act

(Unlocking Pension Funds), 2008 .

EXPLANATORY NOTE

Currently,

pension funds that are in locked-in accounts cannot be withdrawn except in specified

circumstances. The Bill amends the Pension Benefits Act to allow up to the

entire amount in the account to be transferred into a registered retirement

income fund. The transfer can be made at age 55 or, if the pension plan

provides for retirement at an earlier age, at that age.

Date Bill stage Activity Committee

May 14, 2009

Second Reading

Lost on division

May 14, 2009

Second Reading

Debate

October 23, 2008

First Reading

Carried

Debates and Progress

First Reading

October 23, 2008

Committee

Second Reading

May 14, 2009

Mr. Ted Chudleigh, Ms. Cheri DiNovo, Mr. Khalil Ramal, Mr. Ted Arnott, Mr. Wayne Arthurs, Mr. Peter Shurman

May 14, 2009

May 14, 2009

Lost on division.

Committee

Third Reading

Royal Assent :

Coming into force :

Royal Assent.

Acts affected - Bill 116

Most Ontario public acts are available electronically; to view copies of the Acts to be amended by this bill visit e-laws

Pension Benefits Act

Legislative Assembly of Ontario

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Document details

Collection	Ontario — Bills
Citation	Bill 116, 39-1
Type	bill
Volume / chapter	p39 s1 bill 116 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	c33181c382721016e2f631a2b653ccb7e5fe5075

Source file is stored in the law ingest library (html).