Regulatory Alerts2021-11-10
Added · Updated
Preservation of Retirement Benefits (RF.R.5.10)
The Minister of Finance issued Regulation RF.R.5.10 to mandate the preservation of retirement benefits for members who withdraw early from registered funds. The regulation requires funds to provide a preserved benefit calculated at 75% of the minimum individual reserve, while allowing members to elect higher percentages or alternative settlement forms such as contracts or collective investment funds. It establishes strict terms regarding payment timing, death benefits, protection from alienation, favorable tax treatment, and conditions permitting early lump-sum commutation for severely impaired members.
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