R-15.1, r. 6 - Regulation respecting supplemental pension plans

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30. An annuity contract is a contract under which, in consideration for capital originating directly or initially from the fund of a supplemental pension plan, an insurer guarantees to the purchaser who is a former member, a member or the spouse thereof a life pension of which payment begins immediately after the transfer of the capital or is deferred to a later date. The text of that contract must provide that:
(1)  the insurer may, for the purposes of purchasing the pension, accept only sums originating directly or initially from the pension fund of a plan governed by the Act or referred to in paragraphs 1, 2, 2.1, 2.2, 3.1 or 4 of section 28, or from another insurer who is a party to a similar annuity contract;
(2)  with the exception of the cases referred to in paragraph 3 or in section 31, the pension benefit resulting from the contract may not be paid to the purchaser or to his spouse except in the form of a life pension established for the duration of the life of the purchaser alone or for the duration of the life of the purchaser and the life of his spouse; the periodic amounts paid under that pension must be equal, unless each amount to be paid is increased by reason of an index or rate provided for in the contract or uniformly adjusted by reason of a seizure effected on the benefits of the purchaser, a redetermination of the purchaser’s pension, the partition of the benefits of the purchaser with his spouse, the payment of a temporary pension under the conditions provided for in section 91.1 of the Act or the election provided for in subparagraph 3 of the first paragraph of section 93 of the Act;
(3)  where the purchaser who is a former member or a member dies before the beginning of payment of the pension, his spouse or, failing that, his successors are entitled to a benefit at least equal to the capital transferred to the insurer with interest accrued at the rate obtained monthly on 5-year personal term deposits in chartered banks, as compiled by the Bank of Canada;
(4)  where the purchaser who is a former member or a member dies after the beginning of payment of his pension, the insurer grants to the purchaser’s spouse who has not waived it a life pension equal to at least 60% of the amount of the purchaser’s pension, including, during the period of replacement, the amount of any temporary pension;
(5)  the spouse of the purchaser may, by giving written notice to the insurer, waive his entitlement to receive the benefit provided for in paragraph 3 or the pension provided for in paragraph 4 and may revoke such a waiver by giving written notice to that effect to the insurer before, in the case of the benefit, the death of the purchaser or, in the case of the pension, the beginning of payment of the purchaser’s pension;
(6)  the spouse of the purchaser ceases to be entitled to the benefit provided for in paragraph 3 or, as the case may be, in paragraph 4 upon separation from bed and board, divorce, nullity of marriage, dissolution or nullity of civil union or, in the case of a spouse who is not a married or civil union spouse, upon cessation of conjugal relationship, unless the purchaser has transmitted to the insurer the notice provided for in section 89 of the Act;
(7)  where the pension paid to the purchaser was determined by taking into account his spouse’s entitlement to the pension provided for in paragraph 4, the purchaser may, if the spouse is no longer entitled to that pension pursuant to paragraph 6, require that his pension by replaced by another pension, which has the same characteristics as the replaced pension, with the exception of the benefit granted to the spouse under paragraph 4, and whose value is equal to the value that pension commuted to the date of the purchaser’s application for replacement;
(8)  the seizable portion of the capital accrued to pay the pension may be paid in a lump sum in execution of a judgment rendered in favour of the purchaser’s spouse that gives entitlement of a seizure for unpaid alimony.
O.C. 1158-90, s. 30; Erratum, 1991 G.O. 2, 41; O.C. 173-2002, s. 24; O.C. 1073-2009, s. 10; O.C. 500-2014, s. 14.
30. An annuity contract is a contract under which, in consideration for capital originating directly or initially from the fund of a supplemental pension plan, an insurer guarantees to the purchaser who is a former member, a member or the spouse thereof a life pension of which payment begins immediately after the transfer of the capital or is deferred to a later date. The text of that contract must provide that:
(1)  the insurer may, for the purposes of purchasing the pension, accept only sums originating directly or initially from the pension fund of a plan governed by the Act or referred to in paragraphs 1, 2, 3.1 or 4 of section 28, or from another insurer who is a party to a similar annuity contract;
(2)  with the exception of the cases referred to in paragraph 3 or in section 31, the pension benefit resulting from the contract may not be paid to the purchaser or to his spouse except in the form of a life pension established for the duration of the life of the purchaser alone or for the duration of the life of the purchaser and the life of his spouse; the periodic amounts paid under that pension must be equal, unless each amount to be paid is increased by reason of an index or rate provided for in the contract or uniformly adjusted by reason of a seizure effected on the benefits of the purchaser, a redetermination of the purchaser’s pension, the partition of the benefits of the purchaser with his spouse, the payment of a temporary pension under the conditions provided for in section 91.1 of the Act or the election provided for in subparagraph 3 of the first paragraph of section 93 of the Act;
(3)  where the purchaser who is a former member or a member dies before the beginning of payment of the pension, his spouse or, failing that, his successors are entitled to a benefit at least equal to the capital transferred to the insurer with interest accrued at the rate obtained monthly on 5-year personal term deposits in chartered banks, as compiled by the Bank of Canada;
(4)  where the purchaser who is a former member or a member dies after the beginning of payment of his pension, the insurer grants to the purchaser’s spouse who has not waived it a life pension equal to at least 60% of the amount of the purchaser’s pension, including, during the period of replacement, the amount of any temporary pension;
(5)  the spouse of the purchaser may, by giving written notice to the insurer, waive his entitlement to receive the benefit provided for in paragraph 3 or the pension provided for in paragraph 4 and may revoke such a waiver by giving written notice to that effect to the insurer before, in the case of the benefit, the death of the purchaser or, in the case of the pension, the beginning of payment of the purchaser’s pension;
(6)  the spouse of the purchaser ceases to be entitled to the benefit provided for in paragraph 3 or, as the case may be, in paragraph 4 upon separation from bed and board, divorce, nullity of marriage, dissolution or nullity of civil union or, in the case of a spouse who is not a married or civil union spouse, upon cessation of conjugal relationship, unless the purchaser has transmitted to the insurer the notice provided for in section 89 of the Act;
(7)  where the pension paid to the purchaser was determined by taking into account his spouse’s entitlement to the pension provided for in paragraph 4, the purchaser may, if the spouse is no longer entitled to that pension pursuant to paragraph 6, require that his pension by replaced by another pension, which has the same characteristics as the replaced pension, with the exception of the benefit granted to the spouse under paragraph 4, and whose value is equal to the value that pension commuted to the date of the purchaser’s application for replacement;
(8)  the seizable portion of the capital accrued to pay the pension may be paid in a lump sum in execution of a judgment rendered in favour of the purchaser’s spouse that gives entitlement of a seizure for unpaid alimony.
O.C. 1158-90, s. 30; Erratum, 1991 G.O. 2, 41; O.C. 173-2002, s. 24; O.C. 1073-2009, s. 10.