Pooled Registered Pension Plans Regulation

Pooled Registered Pension Plans Regulation, M.R. 79/2017 The Pooled Registered Pension Plans (Manitoba) Act , C.C.S.M. c. P94.6 Regulation 79/2017 Registered July 28, 2017 bilingual version (HTML) Table of Contents Section DEFINITIONS AND APPLICATION OF FEDERAL REGULATIONS 1 Definitions 2 Application of federal regulations LICENSING REQUIREMENTS 3 Federal regulations, section 7 (licence conditions) OBJECTIONS AND APPEALS 4 Applications to provincial superintendent to review and vary directions of compliance issued by federal Superintendent VARIABLE PAYMENTS 5 Federal regulations, section 37 (payment amount — variable payments) JOINT LIFE ANNUITY ENTITLEMENT 6 Prescribed joint life annuity 7 Waiver of joint life annuity 8 Revocation of waiver WITHDRAWAL BY NON-RESIDENT 9 Withdrawal by non-resident UNLOCKING AS A RESULT OF DISABILITY 10 Disability — defined 11 Physician's statement required 12 Consent required under both applied Act and Manitoba Act TRANSFER OF FUNDS — PRESCRIBED INSTRUMENTS 13 Locked-in retirement accounts 14 Life income funds 15 Immediate or deferred life annuities DIVISION OF A PRPP ACCOUNT ON — BREAKDOWN OF A RELATIONSHIP 16 Definitions 17 Options on division 18 Portion subject to division 19 Valuation of portion to be divided 20-21 Repealed 22 Waiver of entitlement after member's death 23 Statement for division of PRPP account 23.1 Agreement or order WAIVER OF SURVIVOR ENTITLEMENT 24 Waiver of survivor entitlement COMING INTO FORCE 25 Coming into force Schedule A Waiver of 60% Joint Life Annuity Entitlement B Consent to Withdrawal by Non-Resident C Consent to Withdrawal as a Result of Disability D Waiver of Division after Death of Member E Waiver of Survivor Entitlement DEFINITIONS AND APPLICATION OF FEDERAL REGULATIONS Definitions 1 The following definitions apply in this regulation. "applied regulations" means the federal regulations as they apply under this regulation. (« règlement appliqué ») "life income fund" means a life income fund as described in section 10.28 of the Pension Benefits Regulation , Manitoba Regulation 39/2010. (« fonds de revenu viager ») "locked-in retirement account" means a locked-in retirement account as described in section 10.12 of the Pension Benefits Regulation . (« compte de retraite immobilisé ») "Manitoba Act" means The Pooled Registered Pension Plans (Manitoba) Act . (« loi du Manitoba ») Application of federal regulations 2(1) Subject to the Manitoba Act and this regulation, the provisions of the federal regulations apply, with the changes the circumstances require, in respect of pooled registered pension plans as though those provisions had been enacted as provisions of this regulation. 2(2) For the purpose of applying, under subsection (1), a provision of the federal regulations, unless a contrary intention appears in this regulation, the word or expression in that provision set out in Column 1 of the following table is to be read as the word or expression set out opposite it in Column 2: Column 1 Column 2 designated provinces designated jurisdictions Superintendent superintendent (except in section 6.2 of the federal regulations) the Act the applied Act these Regulations the applied regulations 2(3) The following provisions of the federal regulations do not apply: (a) the title; (b) the definitions "Act", "life income fund", "locked-in RRSP", "restricted life income fund" and "restricted locked-in savings plan" in section 1 (definitions); (c) paragraph 34(a) (exceptions — s. 47 of the Act); (d) section 38 (prescribed locked-in RRSP); (e) section 39 (prescribed restricted locked-in savings plan); (f) section 40 (prescribed restricted life income fund); (g) section 41 (prescribed life income fund); (h) section 42 (prescribed life annuity); (i) section 48 (notice of appeal); (j) section 50 (repeal); (k) section 51 (coming into force). LICENSING REQUIREMENTS Federal regulations, section 7 (licence condition) 3 For the purpose of its application under this regulation, section 7 of the federal regulations is modified by adding the following after paragraph (d): (d.1) the corporation holds a licence under the federal Act; OBJECTIONS AND APPEALS Applications to provincial superintendent to review and vary directions of compliance issued by federal Superintendent 4 Despite section 37 of the applied Act, if the (federal) Superintendent issues a direction of compliance to an administrator under section 34 of the applied Act that relates to a matter set out in Schedule C of the Multilateral Agreement Respecting Pooled Registered Pension Plans and Voluntary Retirement Savings Plans , (a) the administrator or any person affected by the direction of compliance may file a notice of objection with the (provincial) superintendent within 60 days of receiving or becoming aware of the direction; and (b) on receipt of the notice, the (provincial) superintendent must review the direction of compliance and confirm, vary or overturn it. VARIABLE PAYMENTS Federal regulations, section 37 (payment amount — variable payments) 5 For the purpose of its application under this regulation, subsection 37(2) of the federal regulations must be read as follows: (2) The payment shall not be (a ) less than the minimum amount determined under subsection 8506(5) of the Income Tax Act Regulations , C.R.C. c. 945, published under the Income Tax Act (Canada); or (b ) more than the maximum amount payable determined as if the pooled registered pension plan were a pension plan subject to subsection 6.8(1) of the Pension Benefits Regulation , Manitoba Regulation 39/2010. JOINT LIFE ANNUITY ENTITLEMENT Prescribed joint life annuity 6 A joint life annuity is prescribed for the purposes of subsection 9(1) of the Manitoba Act if it meets the requirements of (a) subsections 9(1) to (3) of the Manitoba Act; and (b) section 15 of this regulation. Waiver of joint life annuity 7(1) A waiver under subsection 9(4) of the Manitoba Act by a cohabiting spouse or common-law partner of his or her entitlement to a joint life annuity is valid only if the following requirements have been met: (a) before signing the waiver, the spouse or common-law partner has been provided with a statement by the administrator that includes (i) the date of the statement, (ii) the name of the spouse or common-law partner as the person entitled to the joint life annuity, (iii) the balance in the PRPP account on the date of the statement, (iv) the date for which the commencement of variable benefits to the member or the transfer of funds out of the member's PRPP account under section 50 of the applied Act has been requested, (v) the amount of the joint life annuity that would be payable if (A) the entitlement were not waived, and (B) payment of the joint life annuity were to commence on the date for which the commencement of variable benefits to the member or the transfer of funds out of the member's PRPP account under section 50 of the applied Act has been requested; (vi) a statement that the value determined in accordance with subclauses (iii) and (v) is not final and subject to change, (vii) an explanation of the options available under the plan and, for each option, (A) a summary of the benefits if the option is exercised, and (B) a description of how to exercise the option; (b) the waiver is in the form set out in Schedule A and has been signed by the spouse or common-law partner in the presence of a witness and provided to the administrator no more than 60 days before the commencement of variable benefits to the member or the transfer of funds out of the member's PRPP account under section 50 of the applied Act. 7(2) A waiver under subsection 9(4) of the Manitoba Act is not required with respect to a request to transfer funds out of a PRPP account into (a) a locked-in retirement account or life income fund that meets the requirements of section 13 of this regulation; or (b) a pension plan as defined in The Pension Benefits Act . Revocation of waiver 8 A person who provides a waiver in accordance with section 7 may revoke it by delivering to the administrator a written and signed revocation at any time before the commencement of variable payments or the transfer of funds out of the member's PRPP account under section 50 of the applied Act. WITHDRAWAL BY NON-RESIDENT Withdrawal by non-resident 9(1) Despite subsection 47(1) (locking-in) of the applied Act, a person may withdraw the funds in his or her PRPP account if all of the following conditions are met: (a) the person provides written confirmation from the Canada Revenue Agency that he or she is a non-resident for the purposes of the Income Tax Act (Canada); (b) the person is no longer contributing to the pooled registered pension plan in which the PRPP account is held; (c) if the member has a cohabiting spouse or common-law partner, (i) the administrator has provided the spouse our common-law partner with a statement that includes (A) the date of the statement, (B) the name of the spouse or common-law partner as the person required to sign a consent, (C) the balance in the PRPP account on the date of the request by the member to withdraw his or her funds, (D) a statement that the value determined in accordance with paragraph (C) is not final and subject to change, and (E) an explanation of the options available under the plan and, for each option, a summary of the benefits if the option is exercised, and a description of how to exercise the option, and (ii) after receiving the statement required by subclause (i), the spouse or common-law partner signs a consent in the form set out in Schedule B in the presence of a witness and provides it to the administrator. 9(2) The amount that may be withdrawn under subsection (1) is reduced by (a) the amount that is or may become payable to any person under section 13 or 14 of the Manitoba Act at the time of withdrawal; (b) the amount bound by any garnishment order served on the administrator under section 14.1 of The Garnishment Act prior to the date of withdrawal; and (c) the amount bound by any preservation order issued against the member under section 59.3 of The Family Maintenance Act . UNLOCKING AS A RESULT OF DISABILITY Disability — defined 10 For the purpose of subsection 10(1) of the Manitoba Act, "disability" means a life expectancy that has been shortened by reason of a terminal illness or disability to less than two years. Physician's statement required 11 An administrator must not permit a member to withdraw funds from his or her PRPP account under subsection 10(1) of the Manitoba Act unless the request is supported by a physician licensed to practice medicine in Canada certifying that the member has a life expectancy of less than two years. Consent required under both applied Act and Manitoba Act 12(1) Despite the provisions of a pooled registered pension plan that permit a withdrawal of funds in the case of a disability as defined in the applied regulations, the consent requirement in subsection 10(2) of the Manitoba Act applies to such a withdrawal of funds. 12(2) A consent by a cohabiting spouse or common-law partner of a member to the member's withdrawal of funds from his or her PRPP account under subsection 10(1) of the Manitoba Act — or in the case of disability as defined in the applied regulations — is valid only if the following requirements have been met: (a) before signing the consent, the spouse or common-law partner has been provided with a statement by the administrator that includes (i) the date of the member's request to withdraw funds from his or her PRPP account, (ii) the name of the spouse or common-law partner as the person required to sign the consent, (iii) the balance in the PRPP account on the date of the request, (iv) the amount of the joint life annuity that would be payable under section 9 of the Manitoba Act if no funds were withdrawn under section 10 of that Act; (v) a statement that the values set out in accordance with subclauses (iii) and (iv) are not final and are subject to change, (vi) an explanation of the options available under the plan and, for each option, (A) a summary of the benefits if the option is exercised, and (B) a description of how to exercise the option; (b) the consent is in the form set out in Schedule C and has been signed by the spouse or common-law partner in the presence of a witness and provided to the administrator. 12(3) The amount that may be withdrawn under subsection (1) is reduced by (a) the amount that is or may become payable to any person under section 13 or 14 of the Manitoba Act at the time of withdrawal; (b) the amount bound by any garnishment order served on the administrator under section 14.1 of The Garnishment Act before the date of withdrawal; and (c) the amount bound by any preservation order issued against the member under section 59.3 of The Family Maintenance Act . TRANSFER OF FUNDS — PRESCRIBED INSTRUMENTS Locked-in retirement accounts 13(1) A locked-in retirement account is prescribed for the purposes of paragraphs 50(1)⁠(b) and (3)⁠(b) and 54(2)⁠(b) of the applied Act and clause 13(3)⁠(c) of the Manitoba Act if it meets the requirements for locked-in retirement accounts as set out in Division 2 of Part 10 of the Pension Benefits Regulation . 13(2) An administrator transferring funds from a PRPP account into a locked-in retirement account must comply with subsections 10.17(1) and (2) and subsection 10.19(2) of the Pension Benefits Regulation . Life income funds 14(1) A life income fund is prescribed for the purposes of paragraphs 50(1)⁠(b) and (3)⁠(b) and 54(2)⁠(b) of the applied Act and clause 13(3)⁠(c) of the Manitoba Act if it meets the requirements for life income funds as set out in Division 2 of Part 10 of the Pension Benefits Regulation . 14(2) An administrator transferring funds from a PRPP account into a life income fund must comply with subsections 10.34(1) and (2) and subsection 10.36(2) of the Pension Benefits Regulation . Immediate or deferred life annuities 15 A life annuity is prescribed for the purposes of paragraphs 50(1)⁠(c) and (3)⁠(c) and 54(2)⁠(c) of the applied Act and clause 13(3)⁠(d) of the Manitoba Act if it is (a) an immediate life annuity that provides that (i) subject to section 12 of the Manitoba Act, no benefit provided under the annuity shall be transferred, charged, attached, anticipated or given as security and that any transaction appearing to do so is void, and (ii) except in the case of the unexpired period of a guaranteed annuity when the annuitant is deceased, no benefit provided under the annuity shall be surrendered during the lifetime of their spouse or common-law partner and that any transaction appearing to do so is void; or (b) a deferred life annuity that provides (i) for the conditions in subclauses (a)⁠(i) and (ii), (ii) that if the annuitant dies prior to the day on which the annuity payments begin, the survivor is entitled, on the death of the annuitant, to an amount equal to the commuted value of the deferred life annuity, and (iii) that any amount to which the survivor is entitled shall be (A) transferred to a PRPP, (B) transferred to a pension plan if the pension plan permits such a transfer and administers the benefit attributed to the transferred funds as if the benefit were that of a plan member, (C) transferred to a life income fund, (D) transferred to a locked-in retirement account, or (E) used to purchase an immediate life annuity or a deferred life annuity. DIVISION OF PRPP ACCOUNT ON BREAKDOWN OF A RELATIONSHIP Definitions 16 The following definitions apply in sections 17 to 24. "separation date" , in relation to a division of the funds in a member's PRPP account, means the date on which the member and the person entitled to the division began living separate and apart because of a breakdown of their relationship. (« date de séparation ») "spouse" of a member includes a former spouse of the member. (« conjoint ») Options on division 17(1) The percentage of the funds in a member's PRPP account to be paid to the member's spouse or common-law partner on a division under subsections 13(1) and (2) of the Manitoba Act must be specified in a written agreement or by an order of the court made under The Family Property Act . 17(2) The percentage specified for the purpose of subsection (1) must not be more than 50% and an administrator must not divide the funds in a member's PRPP account under an agreement or order that requires or purports to require a higher percentage. 17(3) An agreement or order of the court may specify that the member's spouse or common-law partner is not entitled to any portion of the member's PRPP account. M.R. 64/2021 Portion subject to division 18 The portion of funds to be divided under subsections 13(1) and (2) of the Manitoba Act is the portion of funds that accrued (a) in the case of a common-law relationship, from the first day of the period in which the parties cohabited with each other in a conjugal relationship and that continued until they became common-law partners; or (b) in the case of a marriage, from the date of the marriage or, if there was a period in which the parties cohabited with each other in a conjugal relationship and which continued until they were married, from the first day of that period; to their separation date. Valuation of portion to be divided 19 If the funds in a member's PRPP account are to be divided, the spouse's or common-law partner's share must be calculated according to the following formula: A = B/100% × (C – D) In this formula, A is the spouse or common-law partner's share of the funds; B is the percentage specified in an agreement or order that complies with subsection 17(2) as being payable to the spouse or common-law partner entitled to the division; C is an amount calculated (a) by determining the value — as at the separation date — of the funds held in the member's PRPP account on the separation date, and (i) including any contributions owing but not yet remitted by the member's employer as of the separation date, and (ii) excluding any other contributions made by the member or the member's employer after the separation date, (b) by adjusting the amount determined in accordance with clause (a) to account for any increase or decrease in the value of the funds included by clause (a) from the separation date to the date the transfer or payment is made; and (c) by adding any interest earned on the funds included by clause (a) from the separation date to the date the transfer or payment is made; D is the value of the funds in the member's PRPP account as at the date on which the relationship began as set out in section 18. M.R. 64/2021 20 and 21 [Repealed] M.R. 64/2021 Waiver of entitlement after member's death 22 A waiver under subsection 15(2) of the Manitoba Act by a person of his or her entitlement to a division of the funds in a member's PRPP account is only valid if (a) before signing the waiver, the spouse or common-law partner has been provided with a statement by the administrator under section 23 of this regulation; and (b) the waiver is in the form set out in Schedule D and has been signed by the spouse or common-law partner in the presence of a witness and provided to the administrator. M.R. 64/2021 Statement for division of PRPP account 23(1) If a member of a pooled registered pension plan and his or her spouse or common-law partner began living separate and apart after the person became a member, the administrator must provide a statement to the member and the spouse or common-law partner within 60 days after receiving a written request from either of them. 23(2) The request must set out the dates on which the accrual period under section 18 began and ended. 23(3) The statement must set out (a) the dates set out in the request in accordance with section 18; (b) the value of the spouse or common-law partner's total entitlement in accordance with sections 18 and 19; (c) an explanation of the options, and for each option, a summary of the benefits to which the member and the spouse or common-law partner would be entitled on exercising the option; (d) the date on which the member became a member; (e) if the member is no longer making contributions to his or her PRPP account, the date on which the member stopped making such contributions; and (f) that before agreeing to receive a percentage of less than 50% on a division, the member's spouse or common-law partner should seek (i) legal advice with respect to their family law entitlements, and (ii) financial advice as to the implication of agreeing to receive less than 50%. 23(4) The administrator is not required to comply with subsection (1) if the request was received within 12 months after providing a statement under that subsection in respect of the same division of funds in the member's PRPP account, unless the spouse's or common-law partner's entitlement to a division of the funds in the member's PRPP account arose only after the prior statement was provided. 23(5) A statement under subsection (1) must be provided at no charge to the person entitled to receive the statement or to the member whose funds in a PRPP account are subject to a division. M.R. 64/2021 Agreement or order 23.1(1) The agreement or order specifying the percentage of a member's PRPP account payable to the member's spouse or common-law partner must (a) specify the applicable dates for the purpose of section 18; and (b) be filed with the administrator of the plan that is subject to the division before the division is made. 23.1(2) Unless the agreement or order is filed jointly by the member and the member's spouse or common-law partner, the administrator must, within 30 days after receiving the agreement or order, provide written notice to the member and the member's spouse or common-law partner indicating (a) that the administrator received the agreement or order and the date on which it was received; (b) the percentage of the member's PRPP account to be paid to the member's spouse or common-law partner in accordance with the agreement or order; and (c) that unless the member objects to the division based on a ground set out in subsection (3) within 30 days after the notice is provided, the administrator will divide the PRPP account in accordance with the agreement or order. 23.1(3) Within the deadline set out in clause (2)⁠(c), the member may provide the administrator with a written notice of objection to the division on any of the following grounds: (a) that the agreement or order has been varied or rescinded; (b) that the terms of the agreement or order are being satisfied by other means; (c) that proceedings have been commenced in a court of competent jurisdiction to challenge or vary the terms of the agreement or order. 23.1(4) A member objecting to the division on a ground set out in subsection (3) must provide the administrator with evidence to support the objection. 23.1(5) If the administrator is of the opinion that the agreement or order cannot be complied with, or if the administrator receives a notice of objection under subsection (3), the administrator may delay the division of the member's PRPP account until the administrator receives (a) a new or revised agreement or court order; or (b) directions from the court on how the division is to be made. 23.1(6) A notice required to be provided to a person under this section may be (a) sent by ordinary mail to the person at their last known address; (b) sent by e-mail to the person; or (c) provided in another manner that has been approved by the superintendent. M.R. 64/2021 WAIVER OF SURVIVOR ENTITLEMENT Waiver of survivor entitlement 24 A waiver under subsection 16(2) of the Manitoba Act by a person of his or her entitlement to the funds in a member's PRPP account is valid only if the following requirements have been met: (a) before signing the waiver, the survivor has been provided with a statement by the administrator that includes (i) the date of the statement, (ii) the member's date of death, (iii) the name of the survivor, (iv) the balance in the PRPP account on the date of the statement, (v) a statement that the value determined in accordance with subclause (iv) is not final and is subject to change, and (vi) an explanation of the options available under the plan and, for each option, (A) a summary of the benefits if the option is exercised, and (B) a description of how to exercise the option; (b) the waiver is in the form set out in Schedule E and has been signed by the survivor in the presence of a witness and provided to the administrator. COMING INTO FORCE Coming into force 25 This regulation comes into force on the same day that The Pooled Registered Pension Plans (Manitoba) Act , S.M. 2017, c. 3, comes into force. SCHEDULE A Waiver of 60% Joint Life Annuity Entitlement SCHEDULE B Consent to Withdrawal by Non-resident SCHEDULE C Consent to Withdrawal as a Result of Disability SCHEDULE D Waiver of Division after Death of Member SCHEDULE E Waiver of Survivor Entitlement