Bill 70 2015

An Act respecting protection for registered retirement savings

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Definitions

   1.  In this Act,

“enforcement process” means,

  (a)  garnishment, execution, seizure or attachment, or

  (b)  any other remedy or legal process to enforce payment of an amount payable by a planholder; (“procédure d’exécution”)

“planholder”, in relation to a registered plan, means,

  (a)  in the case of a deferred profit sharing plan, a beneficiary under the plan and a spouse or common-law partner, as defined in subsection 248 (1) of the Income Tax Act (Canada), who receives amounts payable on the beneficiary’s death,

  (b)  in the case of a registered retirement income fund, an annuitant as defined in subsection 146.3 (1) of the Income Tax Act (Canada), or

   (c)  in the case of a registered retirement savings plan, an annuitant as defined in subsection 146 (1) of the Income Tax Act (Canada); (“titulaire”)

“registered plan” means,

  (a)  a deferred profit sharing plan, as defined in subsection 147 (1) of the Income Tax Act (Canada),

  (b)  a registered retirement income fund, as defined in subsection 146.3 (1) of the Income Tax Act (Canada), or

   (c)  a registered retirement savings plan, as defined in subsection 146 (1) of the Income Tax Act (Canada). (“régime enregistré”)

Application

   2.  This Act applies to every registered plan, whether it is registered before or after this Act comes into force, except a plan to which subsections 66 (1), (2) and (3) of the Pension Benefits Act apply.

Exemption from enforcement process

   3.  (1)  Subject to subsection (2), all rights, property and interests of a planholder in a registered plan are exempt from any enforcement process.

Exceptions

   (2)  Subsection (1) and subsections 191 (1) and 196 (2) of the Insurance Act do not apply to an enforcement process,

  (a)  to satisfy an order made under the Family Law Act or under similar legislation of any other province or territory of Canada;

  (b)  by the Director of the Family Responsibility Office under the Family Responsibility and Support Arrears Enforcement Act, 1996 in enforcement proceedings the Director may take under that Act in respect of a registered plan;

   (c)  to satisfy an order made under the Interjurisdictional Support Orders Act, 2002; or

  (d)  otherwise to recover support or arrears of support.

Payment out of registered plan

   4.  (1)  A payment out of a registered plan is not exempt from any enforcement process.

Exception, Insurance Act

   (2)  Subsection (1) does not apply with respect to payments out of registered plans to which the Insurance Act applies.

Transfer not a payment

   (3)  For the purposes of subsection (1), a transfer from one registered plan of a planholder directly to another registered plan of the planholder is not a payment out of a registered plan.

Status of payments

   5.  Subsections 7 (2), (3), (4) and (5) of the Wages Act apply with respect to payments out of a registered plan as if the payments were wages.

Conflict with other Acts

   6.  (1)  If a provision of this Act conflicts with a provision of another Act, this Act prevails unless the other Act expressly provides that it or the provision prevails.

Fraudulent Conveyances Act

   (2)  Despite subsection (1), nothing in this Act affects the operation of the Fraudulent Conveyances Act.

Insurance Act

   (3)  Despite subsection (1), nothing in this Act, other than subsection 3 (2), affects the operation of the Insurance Act.

Commencement

   7.  This Act comes into force on the day it receives Royal Assent.

Short title

   8.  The short title of this Act is the Registered Retirement Savings Protection Act, 2015.

EXPLANATORY NOTE

The purpose of the Bill is to protect registered retirement savings plans and registered retirement income funds, as well as deferred profit sharing plans, from most creditors. Those plans are, however, still subject to support orders enforced under the Family Responsibility and Support Arrears Enforcement Act, 1996 and orders respecting the separation of property in family matters.