Marginal note:Non-prohibited investment

5000. For the purpose of the definition “prohibited investment” in subsection 207.01(1) of the Act, an investment is prescribed excluded property at any time if it is

• (a) property described in paragraph 4900(1)(j.1); or

• (b) a share of a mutual fund corporation or a unit of a mutual fund trust where

  • (i) the corporation or trust is a mutual fund that is subject to, and substantially complies with, the requirements of National Instrument 81-102 Mutual Funds, as amended from time to time, of the Canadian Securities Administrators, and

  • (ii) the time is before the end of the second taxation year of the corporation or trust.

Marginal note:Prohibited investment

5001. For the purpose of the definition “prohibited investment” in subsection 207.01(1) of the Act, property that is a qualified investment for a trust governed by a RRIF, RRSP or TFSA solely because of subsection 4900(14) is prescribed property for the trust at any time if, at that time, it is not described in any of subparagraphs 4900(14)(a)(i) to (iii).

Stabilization of Farm Income

• 5503. (1) For the purposes of the definition “NISA Fund No. 2” in subsection 248(1) of the Act, a prescribed fund is Fonds 2 as defined under the Agri-Québec program established by La Financière agricole du Québec.

• (2) For the purposes of the definition “net income stabilization account” in subsection 248(1) of the Act, a prescribed account is an account created under the Agri-Québec program established by La Financière agricole du Québec.

• (f) in respect of duplicates of receipts for gifts that are received by a qualified donee to which subsection 230(2) of the Act applies, the period ending on the day that is two years after the end of the last calendar year to which the receipts relate; and

• (c) an amount that is the portion of a student loan forgiven under section 9.2 of the Canada Student Financial Assistance Act or under section 11.1 of the Canada Student Loans Act.

SPECIFIED PENSION PLANS

7800. For the purposes of the definition “specified pension plan” in subsection 248(1) of the Act, a prescribed arrangement is the Saskatchewan Pension Plan established under The Saskatchewan Pension Plan Act, chapter S-32.2 of the Statutes of Saskatchewan, 1986, as amended from time to time.

“designated savings arrangement”

“designated savings arrangement” of an individual means a RRIF or RRSP under which the individual is the annuitant, or the individual’s account under a money purchase provision of a registered pension plan; (mécanisme d’épargne désigné)

“individual pension plan”

“individual pension plan”, in respect of a calendar year, means a registered pension plan that contains a defined benefit provision if, at any time in the year or a preceding year, the plan

• (a) has fewer than four members and at least one of them is related to a participating employer in the plan, or

• (b) is a designated plan and it is reasonable to conclude that the rights of one or more members to receive benefits under the plan exist primarily to avoid the application of paragraph (a); (régime de retraite individuel)

• (1.1) The Minister may waive in writing the application of the definition “individual pension plan” in subsection (1) if is just and equitable to do so having regard to all the circumstances.

• (6) For the purposes of subsections (3) and 8304(5), (7) and (10), and subject to subsection (6.1) and paragraph 8304(2)(h), the amount of an individual’s qualifying transfers made in connection with a past service event is the total of all amounts each of which is

• (5) Subject to subsection (10), if

Individual Pension Plans

•  (10) If there is a past service event in relation to a defined benefit provision under an individual pension plan, the provisional PSPA of an individual with respect to an employer that is associated with the past service event is the amount, if any, determined by the formula

  A – B

  where

  A

  is the greater of

  • (a) the provisional PSPA that would be determined if

    • (i) this subsection did not apply,

    • (ii) the value of C in subsection 8303(3) were nil, and

    • (iii) the value of D in subsection 8304(5) were nil, and

  • (b) the lesser of

    • (i) the total of

      • (A) the proportion of the fair market value of all property held in connection with the individual’s designated savings arrangements at the time of the past service event, that

        • (I) the total of all amounts each of which is the duration (measured in years, including any fraction of a year) of a period that is pensionable service of the individual under the provision

        is of

        • (II) the lesser of 35 and the number of years by which the individual’s age in whole years at the time of the past service event exceeds 18, and

      • (B) the individual’s unused RRSP deduction room at the end of the year immediately preceding the calendar year that includes the past service event, and

    • (ii) the actuarial liabilities of the retirement benefits associated with the past service event, determined on the basis of the funding assumptions specified under subsections 8515(6) and (7), at the same effective date as the actuarial valuation that forms the basis for the recommendation referred to in subsection 147.2(2) of the Act that is not earlier than the calendar year of the past service event; and

  B

  is the amount of the individual’s qualifying transfers made in connection with the past service event.

• (11) Subsection (10) does not apply to a past service event in relation to an individual pension plan if the provisional PSPA of the member determined under subsections 8303(3) and 8304(5) would be nil if no qualifying transfers were made in connection with the past service event, unless it is a past service event that results from the establishment of the plan or from an amendment to the plan to provide additional retirement benefits.

“IPP minimum amount”

“IPP minimum amount”, for a year, for a person who is a member of an individual pension plan (or a beneficiary, in respect of the plan, who was, at the time of the member’s death, a spouse or common-law partner of the member) means

• (a) if there is only one such person in respect of the plan, the minimum amount that would be determined under subsection 146.3(1) of the Act for the year in respect of the plan if the plan were a registered retirement income fund that held the same property as the property held by the plan and the person were the annuitant of the fund, and

• (b) in any other case, the minimum amount that would be determined under subsection 146.3(1) of the Act if the person were the annuitant of a registered retirement income fund and the fair market value of the property held in connection with the fund at the beginning of the year were determined by the formula

  A × B/C

  where

  A

  is the fair market value of all property held in connection with the plan at the beginning of the year,

  B

  is the amount of the actuarial liabilities in respect of the benefits payable to the person under the terms of the plan at the beginning of the year, and

  C

  is the amount of the actuarial liabilities in respect of all benefits payable under the terms of the plan at the beginning of the year; (minimum RRI)

• (e) there is no reason to expect that the plan may become a revocable plan under subsection 147.1(8) or (9) of the Act or subsections 8503(15) or (26) or 8506(4).

• (x) the portion of the IPP minimum amount for an individual that is not described in subparagraph (i).

IPP — Minimum Withdrawal

•  (26) An individual pension plan becomes a revocable plan at the end of a year if

  • (a) a person who is a member or a beneficiary, in respect of the plan, who was, at the time of the member’s death, a spouse or common-law partner of the member, is in receipt of retirement benefits under the terms of the plan;

  • (b) the person has attained 71 years of age before the year; and

  • (c) the plan has not paid in the year an amount to the person equal to the greater of the retirement benefits payable to the person for the year and the IPP minimum amount for the person for the year.

Underfunded Pension

•  (3) Subsection (3.01) applies in respect of a transfer of an amount on behalf of an individual in full or partial satisfaction of the individual’s entitlement to benefits under a defined benefit provision of a registered pension plan if

  • (a) the individual is an employee or a former employee of an employer (or a predecessor employer of the employer);

  • (b) the employer

    • (i) was a participating employer under the provision,

    • (ii) is the subject of proceedings commenced under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act, and

    • (iii) has ceased making regular contributions under the provision;

  • (c) after the commencement of the proceedings, lifetime retirement benefits paid or payable to the individual under the provision have been reduced because the assets of the plan are insufficient to pay the benefits provided under the provision of the plan as registered;

  • (d) the plan is not a designated plan; and

  • (e) the Minister has approved the application of subsection (3.01) in respect of the transfer.

• (3.01) If this subsection applies, the description of A in subsection (1) shall be read as follows in respect of the transfer:

  A

  is the amount of the individual’s lifetime retirement benefits under the provision commuted in connection with the transfer, as determined under subsection (4), but without reference to the benefit reduction referred to in paragraph (3)(c); and

• (3.02) If a particular amount is transferred in full or partial satisfaction of an individual’s entitlement to benefits under a defined benefit provision of a registered pension plan and subsection (3.01) had applied in respect of a transfer (in this subsection referred to as the “initial transfer”) of an amount on behalf of the individual under the provision, for the purpose of paragraph 147.3(4)(c) of the Act the prescribed amount in respect of the transfer of the particular amount is the lesser of

  • (a) the particular amount, and

  • (b) the amount, if any, by which the prescribed amount in respect of the initial transfer exceeds the total of all amounts each of which is the amount of a previous transfer to which this subsection or subsection (3.01) applied in respect of the individual’s entitlement to benefits under the provision.

PRESCRIBED CHILDREN’S PROGRAMS

Program of Artistic, Cultural, Recreational or Developmental Activity

Definition of “artistic, cultural, recreational or developmental activity”

• 9401. (1) In this section, “artistic, cultural, recreational or developmental activity” means a supervised activity, including an activity adapted for children in respect of whom an amount is deductible under section 118.3 of the Act, suitable for children (other than a physical activity), that

  • (a) is intended to contribute to a child’s ability to develop creative skills or expertise, acquire and apply knowledge, or improve dexterity or coordination, in an artistic or cultural discipline including

    • (i) literary arts,

    • (ii) visual arts,

    • (iii) performing arts,

    • (iv) music,

    • (v) media,

    • (vi) languages,

    • (vii) customs, and

    • (viii) heritage;

  • (b) provides a substantial focus on wilderness and the natural environment;

  • (c) assists with the development and use of intellectual skills;

  • (d) includes structured interaction among children where supervisors teach or assist children to develop interpersonal skills; or

  • (e) provides enrichment or tutoring in academic subjects.

• Marginal note:Prescribed program of artistic, cultural, recreational or developmental activity

  (2) For the purpose of the definition “eligible expense” in subsection 118.031(1) of the Act, a prescribed program of artistic, cultural, recreational or developmental activity is

  • (a) a weekly program, that is not part of a school’s curriculum, of a duration of eight or more consecutive weeks in which all or substantially all the activities include a significant amount of artistic, cultural, recreational or developmental activity;

  • (b) a program, that is not part of a school’s curriculum, of a duration of five or more consecutive days of which more than 50% of the daily activities include a significant amount of artistic, cultural, recreational or developmental activity;

  • (c) a program, that is not part of a school’s curriculum, of a duration of eight or more consecutive weeks, offered to children by a club, association or similar organization (in this section referred to as an “organization”) in circumstances where a participant in the program may select amongst a variety of activities if

    • (i) more than 50% of those activities offered to children by the organization are activities that include a significant amount of artistic, cultural, recreational or developmental activity, or

    • (ii) more than 50% of the time scheduled for activities offered to children in the program is scheduled for activities that include a significant amount of artistic, cultural, recreational or developmental activity; or

  • (d) a membership in an organization, that is not part of a school’s curriculum, of a duration of eight or more consecutive weeks if more than 50% of all the activities offered to children by the organization include a significant amount of artistic, cultural, recreational or developmental activity.

• Marginal note:Mixed-use facility

  (3) For the purpose of the definition “eligible expense” in subsection 118.031(1) of the Act, a prescribed program of artistic, cultural, recreational or developmental activity is that portion of a program, which program does not meet the requirements of paragraph (2)(c) and is not part of a school’s curriculum, of a duration of eight or more consecutive weeks, offered to children by an organization in circumstances where a participant in the program may select amongst a variety of activities

  • (a) that is the percentage of those activities offered to children by the organization that are activities that include a significant amount of artistic, cultural, recreational or developmental activity; or

  • (b) that is the percentage of the time scheduled for activities in the program that is scheduled for activities that include a significant amount of artistic, cultural, recreational or developmental activity.

• Marginal note:Membership

  (4) For the purpose of the definition “eligible expense” in subsection 118.031(1) of the Act, a prescribed program of artistic, cultural, recreational or developmental activity is that portion of a membership in an organization, which membership does not meet the requirements of paragraph (2)(d) and is not part of a school’s curriculum, of a duration of eight or more consecutive weeks that is the percentage of all the activities offered to children by the organization that are activities that include a significant amount of artistic, cultural, recreational or developmental activity.