Finance committee  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.

Finance committee  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—

Finance committee  Clause 90 provides consequential amendments related to variable payment life annuities.

Finance committee  Clause 88 relates to the introduction of the new VPLAs, variable payment life annuities. These are investment products that are being introduced that would provide additional flexibility for registered retirement vehicles and the kinds of investments that they could make in pensions and things.

Finance committee  Not exactly. They're a specific type of annuity that can be held by certain plans. I should say that this is the first time that VPLAs have come up, although this is actually one of the consequential amendments. The main body of the rules are in regulation 8506, and this is regulation 8502.

Finance committee  These are changes to the tax rules that allow a new product to be provided to investors. It's a response to comments saying that such a thing would be useful. Again, I don't know if Max Baylor is here. He can provide more details.

Finance committee  It would allow pooled registered pension plans or defined contribution registered pension plans to provide these variable payment life annuities to their members directly from the plan. Of course, I can go out and buy annuities or all sorts of derivatives or whatever I want, but this really relates to allowing these PRPP or pooled registered pension plans and defined contribution registered pension plans to offer these new variable payment life annuities.

Finance committee  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.

Finance committee  The general rule for capital cost allowance is that the CCA rates track the useful life of the asset. The rate that is associated with any asset will depend on how long it's expected to last. The rate on a building would be lower than the rate on a computer, for example. Each one of these classes has its own rate, ranging from some very low—I think down to 2%—up to 100% capital cost allowance rates.

Finance committee  That was one of the concerns that led to the introduction of some of the non-arm's-length restrictions that I mentioned. I can speak to what the specific amendment would do. As we discussed, an investment incentive property is what gets you in the door for these enhanced deductions that let you take tax depreciation in excess of what's currently provided for in the base rules.

Finance committee  Thank you. I would say, borrowing from my colleague Pierre's grouping, that clauses 85 through 87 are all consequential amendments relating to the measure that we just discussed.

Finance committee  Clause 86 is perhaps not the most intuitive measure. The new zero-emission vehicle rules create a new class for depreciable properties. Each type of depreciable property is arranged by class, and each class has its own depreciation rate. I say “depreciation”, but the technical term in the tax rules is “capital cost allowance rate”.

Finance committee  My colleague Maude described the accelerated investment incentive. Broadly speaking, that is a measure that was recently introduced. It's temporary and it's phasing out. It applies to most classes of depreciable property eligible for the capital cost allowance. In order to qualify for this accelerated depreciation, tax depreciation or accelerated capital cost allowance, certain conditions need to be met.

Finance committee  Clause 81 amends the income tax regulations. This is a consequential amendment relating to the advanced life deferred annuity measure, and it amends a definition of remuneration consequential on amounts being included in income in respect of the ALDAs in a paragraph of the act. It's a consequential amendment relating to advanced life deferred annuities.

Finance committee  Clause 82 is a consequential amendment following the increase to the basic personal amount, which is now split into two parts, the basic personal amount plus the additional amount. This is to add a reference to the new additional amount and the basic personal amount changes.