Keeping Canada’s Economy and Jobs Growing Act (S.C. 2011, c. 24)
Full Document:
Assented to 2011-12-15
85. (1) Sections 5000 and 5001 of the Regulations are replaced by the following:
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).
(2) Subsection (1) applies after March 22, 2011 in respect of investments acquired at any time.
86. (1) The Regulations are amended by adding the following after section 5502:
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.
(2) Subsection (1) applies to the 2011 and subsequent taxation years.
87. (1) Paragraph 5800(1)(d) of the Regulations is amended by adding “and” at the end of subparagraph (ii), by striking out “and” at the end of subparagraph (iii) and by repealing subparagraph (iv).
(2) Paragraph 5800(1)(f) of the Regulations is replaced by the following:
(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
(3) Subsections (1) and (2) come into force on the later of the day on which this Act receives royal assent and January 1, 2012.
88. (1) Section 7300 of the Regulations is amended by striking out “or” at the end of paragraph (a), by adding “or’’ at the end of paragraph (b) and by adding the following after paragraph (b):
(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.
(2) Subsection (1) comes into force on the day on which section 153 of this Act comes into force.
89. (1) Section 7800 of the Regulations and the heading “PRESCRIBED PROVINCIAL PENSION PLANS” before it are replaced by the following:
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.
(2) Subsection (1) applies after 2009.
90. (1) Subsection 8300(1) of the Regulations is amended by adding the following in alphabetical order:
- “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)
(2) Section 8300 of the Regulations is amended by adding the following after subsection (1):
(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.
(3) Subsections (1) and (2) are deemed to have come into force on March 23, 2011.
91. (1) The portion of subsection 8303(6) of the Regulations before paragraph (a) is replaced by the following:
(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
(2) Subsection (1) is deemed to have come into force on March 23, 2011.
92. (1) The portion of subsection 8304(5) of the Regulations before paragraph (a) is replaced by the following:
(5) Subject to subsection (10), if
(2) Section 8304 of the Regulations is amended by adding the following after subsection (9):
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.
(3) Subsections (1) and (2) apply to past service events occurring after March 22, 2011.
93. (1) Subsection 8500(1) of the Regulations is amended by adding the following in alphabetical order:
- “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)
(2) Subsection (1) applies to the 2012 and subsequent taxation years.
- Date modified: