December 2014

December 2014

Pensions - Non-Residency Unlocking

December 4, 2014 – The Pension Benefits Regulations, 1993 have been amended to:

• Permit, but not require, a registered pension plan to allow a person entitled to a benefit under the plan, who has not commenced his or her pension, to withdraw an amount equal to the commuted value of his or her pension from the pension plan, if the person meets the specified non-residency eligibility requirements;
• Require a locked-in retirement account (LIRA) contract to allow the owner of the contract to withdraw the funds held in a LIRA contract, if the owner of the contract meets the specified non-residency eligibility requirements; and
• Specify the following eligibility requirements for a person no longer resident in Canada to withdraw his or her pension money from a pension plan or LIRA contract:
  • The person must be a non-resident of Canada as determined for the purposes of the Income Tax Act (Canada) (ITA);
  • The person must have not resided in Canada for at least two consecutive years;
  • The person must provide the administrator or issuer of the contract with written evidence that the Canada Revenue Agency has determined that the person is a non-resident of Canada for the purposes of the ITA;
  • The person must complete and file with the administrator or issuer of the contract a certificate of non-residency in Form 4; and
  • If the person has a spouse, the person must obtain the spouse’s consent to the withdrawal and waiver of entitlement in Form 5, and file a copy of the completed form with the administrator or issuer of the contract.

As a result of the above amendment, the following publications have been updated:

• Bulletin:  Unlocking Pension Money
• Bulletin:  Administration of Transfer Deficiencies

In addition, the following forms have been added to the Regulations:

• Form 4 – Certificate of Non-Residency
• Form 5 – Spouse’s Consent to Withdrawal and Waiver of Entitlements Under a Pension Plan or a LIRA Contract for Non-Residency Status

For more information, please contact:

Pensions Division
Financial and Consumer Affairs Authority of Saskatchewan
Suite 601, 1919 Saskatchewan Drive
Regina, Saskatchewan S4P 4H2
Phone:  (306) 787-7650
Fax:  (306) 798-4425

Implementation of joint submission would require changes to legislation

Dec. 3, 2014 - On November 27, 2014, the Deputy Superintendent of Pension was informed that the City of Regina on behalf of employers and the Regina Civic Pension and Benefits Committee on behalf of member employees, signed a Memorandum of Understanding concerning the development of a joint submission.

At the request of the parties, the Deputy Superintendent extended the deadline for the filing of submissions to December 5, 2014, to allow the parties to fully develop, articulate and document the details of the joint submission.

While FCAA has yet to see the joint submission, FCAA understands that changes to pension legislation would be required to implement the joint submission. It is not within the authority of FCAA to amend pension legislation. Therefore, the joint submission will need to be considered by the Government of Saskatchewan on the question of whether legislative amendments should proceed.

The parties should expect that the Government of Saskatchewan will seek the views of FCAA on the joint submission when considering legislative amendments. The parties should further expect that FCAA’s views on the joint submission will be formed on the basis of how well the joint submission addresses the concerns raised by the FCAA with respect to the 2013 Letter of Intent. Interested parties can find out more about those concerns by reading the letter of May 22, 2013, posted on the FCAA’s website.

FCAA and the Government of Saskatchewan will need time to consider the joint submission. Further information or clarification of items might be required. The Deputy Superintendent has indicated that she will allow this review to occur before reaching her decision as to whether to cancel the registration of the plan. From the outset, the Deputy Superintendent has expressed a strong preference for a negotiated solution.