Evidence of meeting #51 for Finance in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was agreed.
A video is available from Parliament.
Liberal
The Chair Liberal Wayne Easter
I just got a note from the clerk that Mr. Baylor is not there, so we will let it go with your answer, Trevor.
Is there anything further, Ed, on that one?
Liberal
The Chair Liberal Wayne Easter
Shall clause 88 carry on division?
(Clause 88 agreed to on division)
(On clause 89)
Liberal
The Chair Liberal Wayne Easter
Who wants to give a quick explanation? Is it you, Trevor, or one of your colleagues?
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
I would be happy to do so.
Currently there are restrictions available on transferring benefits from a defined benefit registered pension plan to an RRSP of a former employee. Planning had been developed to circumvent these limits, wherein a former employee would set up their own individual pension plan and then have a transfer from the former employer's defined benefit registered pension plan to their new individual pension plan, thus effectively circumventing the limits on transfers to RRSPs.
What this measure would do is help close those gaps in the rules and ensure that the transfer limits work appropriately.
Liberal
The Chair Liberal Wayne Easter
Shall clause 89 carry on division?
(Clause 89 agreed to on division)
(On clause 90)
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Clause 90 provides consequential amendments related to variable payment life annuities.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
Actually, no. As I mentioned earlier, this provides the main set of the rules, and the one I talked about earlier was consequential, but this relates to VPLAs.
Conservative
Ed Fast Conservative Abbotsford, BC
Not quite. This has to do with money purchase provisions, correct? Clause 90 just defines what those money purchase provisions are.
I hope we're on the same clause.
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
I'm looking for the specific....
I'm not sure of the question. If you look at the top of page 118, it really starts to get into the body of the VPLA rules. The money purchase—
Conservative
Liberal
The Chair Liberal Wayne Easter
This is the VPLA fund, proposed paragraphs 8506(13)(a), 8506(13)(b) and 8506(13)(c).
Director General, Tax Legislation Division, Tax Policy Branch, Department of Finance
In terms of the specific pension rules, I just got an email from my colleague Max, who swears he is in the waiting room and is eager to discuss them.
Liberal
The Chair Liberal Wayne Easter
Mr. Clerk, let's see if you can get Max in here and give Trevor a little break.
I know the interpreters are getting tired. We are going to give them a half-hour break at 7:00.
Liberal
The Chair Liberal Wayne Easter
I don't see him, but I have too many things on my screen. Maximilian, just speak when you're here. We'll wait.
Liberal
Liberal
The Chair Liberal Wayne Easter
It is, but this is technology. It's the Internet speed you have out there on the west coast, Ed. That's the problem.
