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O. Reg. 242/00: GENERAL

filed April 25, 2000 under Pension Benefits Act, R.S.O. 1990, c. P.8

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ONTARIO REGULATION 242/00

made under the

Pension Benefits Act

Made: April 25, 2000
Filed: April 25, 2000

Amending Reg. 909 of R.R.O. 1990

(General)

Note: Since the end of 1998, Regulation 909 has been amended by Ontario Regulations 115/00 and 144/00.  Previous amendments are listed in the Table of Regulations in the Statutes of Ontario, 1998.

1. The French version of paragraph 2 of subsection 22.2 (7) of Regulation 909 of the Revised Regulations of Ontario, 1990 is amended by striking out “Agence canadienne des douanes et du revenu” and substituting “Agence des douanes et du revenu du Canada”.

2. The French version of clause 28 (2) (t) of the Regulation is amended by striking out “Agence canadienne des douanes et du revenu” and substituting “Agence des douanes et du revenu du Canada”.

3. The French version of paragraph 9 of subsection 28.1 (2) of the Regulation is amended by striking out “Agence canadienne des douanes et du revenu” and substituting “Agence des douanes et du revenu du Canada”.

4. (1) Subparagraph 2 ii of subsection 51.1 (3) of the Regulation is amended by striking out “subsection (4)” and substituting “subsection (4) or (4.1), as the case may be”.

(2) Subsection 51.1 (4) of the Regulation is amended by striking out the portion before paragraph 1 and substituting the following:

(4) If the application is made before the due date of the first instalment of the pension, any of the following documents constitutes a declaration about a spouse or same–sex partner:

. . . . .

(3) Section 51.1 of the Regulation is amended by adding the following subsection:

(4.1) If the application is made on or after the due date of the first instalment of the pension, any of the following documents constitutes a declaration about a spouse or same–sex partner:

1. A statement signed by the person, if any, who was the former member’s spouse on the due date of the first instalment of the pension, that the person consents to the withdrawal from the pension fund.

2. A statement signed by the person, if any, who was the former member’s same–sex partner on the due date of the first instalment of the pension, that the person consents to the withdrawal from the pension fund.

3. A statement signed by the former member attesting to the fact that on the due date of the first instalment of the pension,

i. he or she did not have a spouse or same–sex partner,

ii. he or she was living separate and apart from his or her spouse, or

iii. a waiver of the entitlement to receive payment of pension benefits in the form of a joint and survivor pension, delivered under section 46 of the Act by the former member and his or her spouse or same–sex partner, was in effect.

5. The Regulation is amended by adding the following Part:

PART III
COMMUTATION OR SURRENDER
IN CIRCUMSTANCES OF FINANCIAL HARDSHIP

83. (1) In this Part,

“application” means an application under this Part; (“demande”)

“housing unit” means,

(a) a house,

(b) a condominium unit,

(c) an apartment or other unit in a multi–residential property,

(d) a cottage,

(e) a mobile home,

(f) a trailer, or

(g) a houseboat; (“logement”)

“medical expenses” means expenses for goods and services of a medical or dental nature including, without limiting the generality of the foregoing, expenses for,

(a) medical or dental services provided by a hospital or a health care provider,

(b) services provided by an attendant or by a nursing home to a person suffering a severe and prolonged disability,

(c) services provided by a caregiver,

(d) ambulance services,

(e) travel by a person and a companion to obtain medical services,

(f) finding an organ donor,

(g) medical devices such as wheel chairs, artificial limbs and eyeglasses,

(h) a guide dog or hearing ear dog,

(i) dentures,

(j) rehabilitative therapy,

(k) prescription drugs, and

(l) diagnostic testing;  (“frais médicaux”)

“principal residence”, when used in connection with a person, means a property that,

(a) is a housing unit, a leasehold interest in a housing unit or a share in the capital stock of a co–operative housing corporation acquired for the sole purpose of acquiring the right to inhabit a housing unit owned by the corporation, and

(b) is ordinarily inhabited by the person in the calendar year in which the application is signed or in the following calendar year. (“résidence principale”)

(2) For the purposes of an application, a person may have only one principal residence.

(3) For the purposes of an application, a person is a dependant if he or she,

(a) was dependent on the owner or the owner’s spouse or same–sex partner for support at some time during the calendar year in which the application is signed or during the previous calendar year; and

(b) is the child, grandchild, parent, grandparent, brother, sister, uncle, aunt, niece or nephew of,

(i) the owner,

(ii) the owner’s spouse (unless the owner and spouse were living separate and apart on the date the application was signed), or

(iii) the owner’s same–sex partner.

84. The following prescribed retirement savings arrangements are prescribed for the purposes of subsection 67 (5) of the Act:

1. A life income fund.

2. A locked–in retirement account.

3. A locked–in retirement income fund.

85. (1) An application shall be completed in a form approved by the Superintendent, signed by the owner of the retirement savings arrangement and submitted to the Superintendent.

(2) The application shall request that the consent authorize the withdrawal of,

(a) the amount calculated under this Part, which shall not be less than $500;

(b) the amount of any withholding tax; and

(c) the amount of any related fee approved by the Minister.

(3) The application shall be accompanied by one of the following statements:

1. A statement signed by the spouse, if any, of the owner that the spouse consents to the withdrawal.

2. A statement signed by the same–sex partner, if any, of the owner that the same–sex partner consents to the withdrawal.

3. A statement signed by the owner attesting to the fact that the owner does not have a spouse or same–sex partner.

4. A statement signed by the owner attesting to the fact that the owner is living separate and apart from his or her spouse on the date the owner signs the application.

5. A statement signed by the owner attesting to the fact that none of the money in the retirement savings arrangement is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner.

(4) The application shall be accompanied by the owner’s signed statement that he or she understands that any funds released under the consent will not be exempt from execution, seizure or attachment under section 66 of the Act.

(5) The application shall relate to only one retirement savings arrangement.

(6) The application shall be accompanied by a copy of the most recent statement issued by the financial institution that administers the retirement savings arrangement.

(7) The owner shall provide accurate and complete information in the application and accompanying documents.

(8) Before giving his or her consent under subsection 67 (5) of the Act, the Superintendent may require, if he or she considers it necessary,

(a) additional evidence of the circumstances of financial hardship;

(b) any other information with respect to the application and accompanying documents, to assist in understanding them and to verify their authenticity.

(9) The owner shall provide the additional evidence and other information in the form and manner that the Superintendent specifies.

(10) The Superintendent is entitled to rely on the information provided in the application and accompanying documents as well as on any additional evidence and other information provided under subsection (9).

(11) A document is a nullity for the purposes of this Part if it is,

(a) signed more than 60 days before the Superintendent receives it, in the case of a document that requires the signature of the owner or his or her spouse or same–sex partner;

(b) signed or dated more than 12 months before the Superintendent receives it, in all other cases.

86. (1) The Superintendent’s consent under subsection 67 (5) of the Act authorizes the financial institution that administers the retirement savings arrangement to pay, in accordance with the consent,

(a) the specified amount, net of any withholding tax and fee, to the owner; and

(b) the amount of any related fee approved by the Minister, net of withholding tax, to the Minister.

(2) The specified amount may be paid in the form of,

(a) a lump sum payment;

(b) monthly instalments; or

(c) a combination of lump sum payment and monthly instalments.

(3) The financial institution shall make the payment, or the first payment, as the case may be, within 30 days after receiving the Superintendent’s consent.

(4) The consent is a nullity for the purposes of this Part if the financial institution receives it more than 12 months after the date the Superintendent signs it.

87. (1) The following circumstances of financial hardship are prescribed for the purposes of subsection 67 (5) of the Act:

1. The owner or his or her spouse or same–sex partner has received a written demand in respect of arrears in the payment of rent on the owner’s principal residence, and the owner could face eviction if the debt remains unpaid.

2. The owner or his or her spouse or same–sex partner has received a written demand in respect of a default on a debt that is secured against the owner’s principal residence, and the owner could face eviction if the debt remains unpaid.

3. The owner, his or her spouse or same–sex partner or a dependant has incurred or will incur medical expenses for treatment of the illness or physical disability of any of them, and the expenses claimed are reasonable and are not subject to reimbursement from any other source.

4. The owner, his or her spouse or same–sex partner or a dependant will incur or has incurred expenses for renovations or alterations to the owner’s principal residence made necessary by the illness or physical disability of any of them, and the expenses claimed are reasonable and are not subject to reimbursement from any other source.

5. The owner, his or her spouse or same–sex partner or a dependant will incur or has incurred expenses for renovations or alterations to the dependant’s principal residence made necessary by the dependant’s illness or physical disability, and the expenses claimed are reasonable and are not subject to reimbursement from any other source.

6. The owner or his or her spouse or same–sex partner requires money to pay the first and last months’ rent to obtain a principal residence for the owner.

7. The owner’s expected total income from all sources before taxes for the 12–month period following the date of signing the application is 66 2/3 per cent or less of the Year’s Maximum Pensionable Earnings for the year in which the application is signed.

(2) Paragraphs 4 and 5 of subsection (1) also apply, with necessary modifications, to any additional expenses in the construction of a principal residence that are made necessary by a person’s illness or physical disability.

(3) Despite subsection (1), a circumstance relating to expenses incurred or to be incurred for the benefit of a spouse does not constitute a circumstance of financial hardship for the purposes of subsection 67 (5) of the Act if the owner and the spouse are living separate and apart on the date the application is signed.

(4) In an application relating to paragraph 1 of subsection (1),  the owner may apply for one or both of the following:

1. Consent to withdraw an amount sufficient to pay the arrears and reinstate the tenancy.

2. Consent to withdraw,

i. a lump sum covering 12 monthly rent payments, or

ii. 12 monthly instalments, each to cover one monthly rent payment.

(5) In an application relating to paragraph 2 of subsection (1), the owner may apply for one or both of the following:

1. Consent to withdraw an amount sufficient to pay the arrears and bring the debt into good standing.

2. Consent to withdraw,

i. a lump sum covering 12 monthly debt payments, or

ii. 12 monthly instalments, each to cover one monthly debt payment.

(6) In an application relating to paragraph 3 of subsection (1), the owner may apply for one or both of the following:

1. Consent to withdraw an amount sufficient to pay medical expenses incurred or to be incurred.

2. Consent to withdraw,

i. a lump sum covering 12 monthly payments for medical expenses, or

ii. 12 monthly instalments, each to cover medical expenses for one month.

88. (1) The Superintendent’s authority to give his or her consent under subsection 67 (5) of the Act is subject to the conditions set out in subsections (2) to (14).

(2) Subject to section 89, unless the application relates to expenses incurred or to be incurred for the benefit of a dependant, the owner is entitled to withdraw an amount calculated using the formula,

A – (B – C) = D

in which,

“A” is the amount the owner applies to withdraw;

“B” is the market value of all assets of the owner and the spouse or same–sex partner except the following:

1. The owner’s principal residence and all personal property related to its use.

2. Motor vehicles.

3. Personal effects, including clothing and jewellery.

4. Tools of the trade that are essential to the employment of the owner or the spouse or same–sex partner.

5. Assets that are necessary to the operation of a business or farm which the owner or the spouse or same–sex partner operates and has an interest in, up to a maximum of $50,000 for each person and for each business or farm.  However, if the owner and the spouse or same–sex partner operate and have an interest in the same business or farm, the total amount for that business or farm shall not exceed $50,000;

“C” is the total of the liabilities of the owner and the spouse or same–sex partner, except liabilities secured against excluded assets listed under “B”;

“(B – C)” cannot be less than 0;

“D” is the amount the owner is entitled to withdraw, net of any withholding tax and fee.

(3) If the application relates to expenses incurred or to be incurred for the benefit of a dependant, the owner is entitled to withdraw an amount calculated using the formula,

A – (B – C) = D

in which,

“A” is the amount the owner applies to withdraw;

“B” is the market value of all assets of the owner and the spouse or same–sex partner, and of the dependant, except the following:

1. The owner’s principal residence, the dependant’s principal residence and all personal property related to their use.

2. Motor vehicles.

3. Personal effects, including clothing and jewellery.

4. Tools of the trade that are essential to the employment of the owner, the spouse or same–sex partner, or the dependant.

5. Assets that are necessary to the operation of a business or farm which the owner, the spouse or same–sex partner or the dependant operates and has an interest in, up to a maximum of $50,000 for each person and for each business or farm.  However, if two or more of them operate and have an interest in the same business or farm, the total amount for that business or farm shall not exceed $50,000;

“C” is the total of the liabilities of the owner and the spouse or same–sex partner, and of the dependant, except liabilities secured against excluded assets listed under “B”;

“(B – C)” cannot be less than 0;

“D” is the amount the owner is entitled to withdraw, net of any withholding tax and fee.

(4) In subsections (2) and (3), the assets and business or farming activities of a spouse are not taken into account if the owner and the spouse are living separate and apart on the date the application is signed.

(5) The owner shall provide evidence satisfactory to the Superintendent, in such detail as the Superintendent may determine, of the market value of assets and the amount of liabilities for the purposes of subsections (2) and (3).

(6) If the application relates to an expense that has been incurred, the owner shall provide with the application copies of receipts to account for the total expense, each receipt showing,

(a) the amount;

(b) to whom it was paid; and

(c) the date of the receipt.

(7) If the application relates to an expense that has not yet been incurred, the owner shall provide with the application copies of estimates to account for the total expense, each estimate showing,

(a) the proposed amount;

(b) to whom it would be paid;

(c) the purpose of the payment; and

(d) the date of the estimate.

(8) If the application relates to medical expenses other than dental expenses, the owner shall provide with the application a statement, signed by a physician who is licensed to practise medicine in a jurisdiction in Canada, indicating that in his or her opinion the goods and services purchased or to be purchased are necessary for the person’s treatment.

(9) If the application relates to medical expenses that are dental expenses, the owner shall provide with the application a statement, signed by a dentist who is licensed to practise dentistry in a jurisdiction in Canada, indicating that in his or her opinion the goods and services purchased or to be purchased are necessary for the person’s treatment.

(10) If the application relates to expenses for renovations or alterations to the owner’s principal residence, the owner shall provide with the application a statement, signed by a physician who is licensed to practise medicine in a jurisdiction in Canada, indicating that in his or her opinion,

(a) the renovations or alterations are necessary to accommodate the illness or physical disability of the owner, the owner’s spouse or same–sex partner, or a dependant, to give the person access to the principal residence or to enable him or her to be mobile or functional there; and

(b) the illness or physical disability has lasted or may reasonably be expected to last for a continuous period of at least 12 months.

(11) If the application relates to expenses for renovations or alterations to a dependant’s principal residence, the owner shall provide with the application a statement, signed by a physician who is licensed to practise medicine in a jurisdiction in Canada, indicating that in his or her opinion,

(a) the renovations or alterations are necessary to accommodate the dependant’s illness or physical disability, to give the dependant access to the principal residence or to enable him or her to be mobile or functional there; and

(b) the illness or physical disability has lasted or may reasonably be expected to last for a continuous period of at least 12 months.

(12) Subsections (10) and (11) also apply, with necessary modifications, if the application relates to any additional expenses in the construction of a principal residence that are made necessary by a person’s illness or physical disability.

(13) Only one application may be made during a given 12–month period in relation to a particular person under each of the circumstances of financial hardship listed in paragraphs 1 to 6 of subsection 87 (1).

(14) For the purposes of subsection (13), a 12–month period begins on the date an application with respect to the relevant circumstance of financial hardship and in relation to the particular person is received by the Superintendent.

(15) An unsuccessful application is not counted for the purposes of subsection (13).

89. (1) In applications relating to paragraph 7 of subsection 87 (1), the Superintendent’s authority to give his or her consent under subsection 67 (5) of the Act is subject to the additional conditions set out in subsections (2) to (5).

(2) The owner shall provide with the application a signed statement setting out his or her expected total income from all sources before taxes for the 12–month period following the date of signing the application.

(3) For the purposes of subsection (2), an owner’s expected total income from all sources before taxes does not include,

(a) a withdrawal under this Part;

(b) a refund or repayment of taxes paid to a Canadian jurisdiction;

(c) a refundable tax credit;

(d) a refund of tax paid under the Ontario Child Care Supplement for Working Families program under section 8.5 of the Income Tax Act;

(e) a payment received by a foster parent under the Child and Family Services Act; or

(f) child support payments received under a court order or an agreement.

(4) Only one application may be made during each 12–month period.

(5) An unsuccessful application is not counted for the purposes of subsection (4).

(6) The amount the owner may apply to withdraw under section 88 is the amount by which “E” exceeds “F” where,

“E” is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed; and

“F” is 75 per cent of the owner’s expected total income from all sources before taxes for the 12–month period following the date of signing the application.

6. (1) Subject to subsection (2), this Regulation comes into force on the day it is filed.

(2) Section 5 comes into force on May 1, 2000.

 

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