1. Definitions: In this Agreement, all capitalized terms not otherwise defined
herein shall have the same meaning as in the Declaration and as provided
under the Act and the Regulation. In addition, the following terms shall
have the following meaning:
a) “Account” refers to the National Bank Financial Inc. Retirement
Savings Plan established by the Declaration executed between
the Annuitant, National Bank Financial Inc. and the Trustee, as
supplemented and modified by this Agreement establishing a LIRA that
will hold the locked-in money that is the subject of the Transfer;
b) “Act” means the Pension Benefits Standard Act, 1985 (Canada), as
same may be amended from time to time;
c) “Declaration” means the Declaration of Trust of the National Bank
Financial Inc. Self-Directed Retirement Savings plan executed
between the Annuitant and the Trustee;
d) “LIF” means a registered retirement income fund, as defined in
subsection 146.3(1) of the Tax Act that meets the requirements set
out in section 20.1 of the Regulation;
e) “Life Annuity” means an arrangement that is made to purchase,
through a person authorized to carry on a life insurance business in
Canada, an “immediate life annuity” or a “deferred life annuity” (as
defined in section 2 of the Regulation) that complies with the relevant
provisions of the Tax Act and section 21 of the Regulation, provided
that the annuity shall not differentiate on the basis of the sex of the
beneficiary unless otherwise permitted under the Regulation;
f) “Locked-in RRSP” means a registered retirement savings plan,
as defined in subsection 146(1) of the Tax Act, that meets the
requirements set out in section 20 of the Regulation;
g) “Pension benefit credit” means the aggregate value at a particular
time of that Annuitant’s pension benefit and other benefits provided
under a pension plan, calculated in the manner prescribed by the
Regulation;
h) “Restricted Locked-in RRSP” means a registered retirement
savings plan, as defined in subsection 146(1) of the Tax Act, that
meets the requirements set out in section 20.2 of the Regulation;
i) “Regulation” means the Pension Benefits Standards Regulations,
1985 adopted pursuant to the Act, as same may be amended from
time to time;
j) “Restricted LIF” means a registered retirement income fund,
as defined in subsection 146.3(1) of the Tax Act that meets the
requirements set out in section 20.3 of the Regulation;
k) “Spouse” shall have the meaning assigned to such term under the
Act but does not include any person who is not recognized as a
spouse or a common-law partner for the purposes of any provision of
the Tax Act respecting a registered retirement savings plan;
l) “Survivor”, in relation to an Annuitant, means:
i) if there is no person described in paragraph ii), the Spouse of the
Annuitant at the time of the Annuitant’s death; or
ii) a person who was the common-law partner of the Annuitant at
the time of the Annuitant’s death;
m) “Tax Act” means the Income Tax Act (Canada) and the regulations
adopted thereunder;
n) “Transfer” means the transfer referred to in paragraph A of the
Recitals hereto.
2. Locking-in provisions: Except as permitted by the Act and the
Regulations, all money that is the subject of the Transfer, including all
investment earnings thereon and gains realized thereof, but excluding
all fees, charges, expenses and taxes charged to this Account, shall be
used to provide or ensure a pension that would, but for the Transfer or any
previous transfers, be required or permitted by the Act. No money that is
not locked-in may be transferred or otherwise held under this Account.
3. Value of the Account: The fair market value of the assets held under
the Account as determined by the Trustee in good faith shall be used to
calculate the balance of the money and assets held under this Account for
any particular time, including on the death of the Annuitant or on a transfer
of assets from the Account. Any such determination by the Trustee shall
be conclusive for all purposes hereof.
4. Investments: The money and assets held under this Account shall be
invested by the Trustee, either directly or through the Agent, in the manner
provided at section 3 of the Declaration. All investments of money or assets
held under this Account must comply with the rules for the investment of
RSP money contained in the Tax Act and the regulation thereunder.
5. Permitted transfers: Money or assets held under this Account, including
at the Maturity Date, may not be transferred, in whole or in part, except:
a) to another Locked-in RRSP;
b) to a registered pension plan under the Act if the plan permits such
a transfer and if the plan administers the benefit attributed to the
transferred funds as if the benefit were that of a plan member with
2 years membership in the plan;
c) to purchase a Life Annuity; or
d) to a LIF or to a Restricted LIF.
Such transfer shall be effected within a reasonable time from the receipt
of written instructions from the Annuitant in a form deemed satisfactory
by the Trustee. Once the transfer is completed in compliance with all
conditions relating thereto, the Trustee and the Agent shall be released
from any liability in connection with this Account to the extent of the
transfer.
Notwithstanding the above, the Annuitant agrees that the Trustee shall
never be obliged to refund in advance the investments held under the
Account for purposes of transfer and may, at its entire discretion, either
(i) delay the requested transfer, or (ii) where such investments consist
of identifiable and transferable securities, effect the transfer by the
remittance of such securities.
6. Death of the Annuitant: Upon receipt of evidence satisfactory to the
Trustee in respect of the death of the Annuitant and the right of entitlement
of the Survivor, the Trustee shall pay the funds in the Account to the
Survivor by:
a) transferring the funds to another Locked-in RRSP;
b) transferring the funds to a plan, if the plan permits such a transfer and
if the plan administers the benefit attributed to the transferred funds
as if the benefit were that of a plan member with 2 years membership
in the plan;
c) using the funds to purchase an Life Annuity; or
d) transferring the funds to a LIF or to a Restricted LIF.
No such payment shall be made unless and until the Trustee receives
releases and other documents as it may reasonably require. Such
payment is subject to paragraph 60(l) of the Tax Act.
7. Restrictions: Except as permitted by the law, the funds held under this
Account may not be assigned, charged, anticipated or given as security,
and any transaction purporting to assign, charge, anticipate or give the
funds held under this Account as security is void.
8. Sex Discrimination Prohibited: If a pension benefit credit transferred
into the Account was not varied according to the sex of the plan member,
a Life Annuity purchased with funds accumulated in the Account shall not
differentiate as to sex. The Pension benefit credit that was the object of
the Transfer herein was not varied according to the sex of the Annuitant,
unless otherwise indicated in writing to the Trustee
9. Permitted withdrawals: No withdrawal, commutation or surrender of
money, in whole or in part, held in the Account is permitted and will be
void, except in the following circumstances:
a) Financial difficulties. The Annuitant may withdraw from the Account
an amount up to the lesser of the amount determined by the
following Formula and 50% of the Year’s Maximum Pensionable
Earnings minus any amount withdrawn in the calendar year under
this paragraph from any locked-in registered retirement savings
plan, or under paragraph 20.1(1)(m), 20.2(1)(e) or 20.3(1)(m) of the
Regulation, if the following conditions are met,
(i) the Annuitant certifies that he has not made a withdrawal in
the calendar year under this paragraph from any locked-in
registered retirement savings plan, or under paragraph 20.1(1)
(m), 20.2(1)(e) or 20.3(1)(m) of the Regulation, other than within
the last 30 days before this certification,
(ii) in the event that the value of M in the following Formula is
greater than zero,
(A) the Annuitant certifies that the he expects to make
expenditures on medical or disability-related treatment or
adaptive technology for the calendar year in excess of 20%
of the Annuitant’s total expected income for that calendar
year determined in accordance with the Income Tax Act,
excluding withdrawals in the calendar year under this
paragraph from any locked-in registered retirement savings
plan, or under paragraph 20.1(1)(m), 20.2(1)(e) or 20.3(1)(m)
of the Regulation, and
(B) a physician certifies that such medical or disability-related
treatment or adaptive technology is required, and
(iii) the Annuitant gives to the Trustee a copy of Form 1 and Form 2
of Schedule V of the Regulation.
Formula: M + N
where
M: is the total amount of the expenditures that the Annuitant
expects to make on medical or disability-related treatment or
adaptive technology for the calendar year, and
N: is the greater of zero and the amount determined by the
following formula:
P - Q
Supplementary Agreement to the Declaration of Trust, Establishing a Locked-in Retirement Savings Plan Under the National Bank Financial Inc.
Self-directed Registered Savings Plan
RECITALS:
A. The Annuitant is entitled pursuant to the Act and the Regulation to effect a transfer to the Account of amounts derived, directly or indirectly, from a pension
plan governed by the provisions of the Act, or any other source acceptable under the Act and the Regulation (the “Transfer”);
B. The Annuitant has established a National Bank Financial Inc. self-directed retirement savings plan and wishes same to receive the Transfer;
C. The Transfer cannot be made unless the conditions herein are satisfied;
D. The parties now wish to supplement the Declaration with the provisions of this Agreement in order to comply with the requisite locking-in conditions. In the
event of any conflict between the provisions of the Declaration and this Agreement, the provisions of this Agreement shall prevail.
NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements contained herein, the Parties hereto
agree as follows:
National Bank Financial Wealth Management is a trademark used by National Bank Financial Inc.
26453-202 (2017-11-01) Page 1 of 2
LOCKED-IN RETIREMENT SAVINGS PLAN
Pursuant to the pension benefits standards regulation (Canada)
1155 Metcalfe Street, Montreal, Quebec H3B 4S9
