PART II PENSION FUND REQUIREMENTS
 85. (1) This section applies in respect of a pension plan that meets the following criteria: 1.  In the first report of the pension plan filed by the administrator under section 13 or 14 for which the valuation date was on or after December 31, 2016 and before December 31, 2017, the administrator elected to use the option for solvency relief described in subsection 5.6.3 (3), as it read immediately before its revocation. 2.  Special payments in respect of the pension plan’s new solvency deficiency disclosed by the first report are scheduled for payment after August 31, 2021. O. Reg. 533/21, s. 12. (2) Sections 1.2, 4, 5, 5.1, 5.6.3, subsection 5.7 (7) and sections 6, 6.0.5 and 14, as they read immediately before September 1, 2021, continue to apply to a pension plan described in subsection (1). O. Reg. 533/21, s. 12. (3) Sections 1.2, 4, 5, 5.1, 5.6.3, subsection 5.7 (7) and sections 6, 6.0.5 and 14, as they read immediately before September 1, 2021, cease to apply in respect of a pension plan described in subsection (1) on the first day on which there are no special payments scheduled in respect of the pension plan’s new solvency deficiency. O. Reg. 533/21, s. 12. Part III (ss. 86-89) Revoked:
O. Reg. 185/13, s. 2. schedule 1   life income funds governed by this schedule Establishing the Fund 1. (1) A life income fund that is governed by this Schedule cannot be purchased after December 31, 2008. (2) After December 31 , 2008, money cannot be transferred into a life income fund that is governed by this Schedule from a pension fund, a variable benefit account, another life income fund, a locked-in retirement account, a locked-in retirement income fund or a life annuity that meets the requirements of section 22 of this Regulation. 2. (1) A contract establishing a life income fund that is governed by this Schedule must provide for the matters described in this section. (2) It must indicate the name and address of the financial institution providing the fund. (3) It must describe the owner’s powers, if any, respecting investment of the assets in the fund. (4) It must state that the owner agrees not to assign, charge, anticipate or give as security money payable under the fund except as required by an order under the Family Law Act, a family arbitration award or a domestic contract. (5) It must describe the method for determining the value of the assets in the fund. (6) It must indicate whether the commuted value of the pension benefit that was transferred into the fund was determined in a manner that differentiated on the basis of sex. 3. (1) Money in a life income fund that is governed by this Schedule cannot be commuted, withdrawn or surrendered in whole or in part, except as permitted by section 49 or 67 of the Act, section 22.2 of this Regulation or this Schedule. (2) Every contract establishing a life income fund that is governed by this Schedule shall be deemed to include a provision setting out the restriction described in subsection (1). (3) Any transaction that contravenes subsection (1) is void. 4. The fiscal year of a life income fund that is governed by this Schedule must end on December 31 and must not exceed 12 months. Periodic Payments out of the Fund 5. (1) Payments out of a life income fund that is governed by this Schedule must begin no earlier than the earliest date on which the former member is entitled to receive a pension under any pension plan from which money was transferred into the fund directly or indirectly. (2) Payments out of the fund must begin no later than the end of the second fiscal year of the fund. (3) The owner must notify the financial institution of the amount to be paid out of the fund each year.  If the owner does not do so, the minimum amount determined under section 6 shall be paid out of the fund that year. (4) The notice respecting the amount to be paid out of the fund must be given either at the beginning of the fiscal year of the fund or at another time agreed to by the financial institution. (5) The notice expires at the end of the fiscal year to which it relates. (6) Revoked:  O. Reg. 288/11, s. 6 (2). 6. (1) The amount of income paid during a fiscal year out of a life income fund that is governed by this Schedule must not exceed the greater of “A” and “B” where, “A”  is the amount of the investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year, and “B”  is the amount calculated using the formula, C/F in which, “C”  is the value of the assets in the fund at the beginning of the fiscal year, and “F”  is the present value, at the beginning of the fiscal year, of an annuity of $1 payable annually in advance over the period commencing at the beginning of the fiscal year and ending on December 31 of the year in which the owner reaches 90 years of age. (2) The following interest rate assumptions are to be used to determine the amount “F” in the definition of “B” in subsection (1): 1.  Revoked:  O. Reg. 416/07, s. 9 (12). 2.  The interest rate for each of the first 15 fiscal years of the period referred to in the definition of “F” is the greater of 6 per cent and the nominal rate of interest on long-term bonds issued by the Government of Canada for November of the year before the beginning of the fiscal year, as determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122487 compiled by Statistics Canada and available on the website maintained by the Bank of Canada. 3.  For the sixteenth and each subsequent fiscal year of the period referred to in the definition of “F”, the interest rate is 6 per cent. (3) The amount of income paid out of the fund during a fiscal year must not be less than the minimum amount prescribed for an RRIF under the Income Tax Act (Canada). (4) If the minimum amount specified by subsection (3) is greater than the maximum amount determined under subsection (1), the minimum amount must be paid out of the fund during the fiscal year. (5) This section shall not be construed to prevent or limit a payment from the fund that is permitted under section 3, 9, 9.1, 10, 10.1, 10.2, 10.3 or 10.4 of this Schedule or under section 22.2 of this Regulation. (6), (7) Revoked:  O. Reg. 239/09, s. 17 (3). Transferring Assets from the Fund 7. (1) The owner of a life income fund that is governed by this Schedule may transfer any or all of the assets in it, (a)  to a life income fund that is governed by Schedule 1.1; (b)  to a variable benefit account; or (c)  to purchase an immediate life annuity that meets the requirements of section 22 of this Regulation; (d)-(f) Revoked:  O. Reg. 239/09, s. 18 (1). (1.1) For the purposes of the life annuity referred to in clause (1) (c), a determination as to whether the owner has a spouse is to be made on the date the annuity is purchased. (1.2) The value of the assets in the fund is subject to division in accordance with the terms of an order under the Family Law Act, a family arbitration award or a domestic contract. (1.2.1) An order under Part I (Family Property) of the Family Law Act, a family arbitration award or a domestic contract is not effective to the extent that it purports to entitle a spouse or former spouse of the owner to the transfer of a lump sum that exceeds 50 per cent of the assets in the fund, determined as of the family law valuation date. (1.2.2) Payments under a life annuity referred to in clause (1) (c) are subject to division in accordance with the terms of an order under the Family Law Act, a family arbitration award or a domestic contract. (1.2.3) An order under Part I (Family Property) of the Family Law Act, a family arbitration award or a domestic contract is not effective to the extent that it purports to entitle a spouse or former spouse of the owner to a share that exceeds 50 per cent of the payments under the life annuity, determined as of the family law valuation date. (1.3) A life annuity referred to in clause (1) (c) shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the fund was determined in a manner that did not differentiate on the basis of sex. (1.4) The financial institution shall not make a transfer described in subsection (1) except where, (a)  the transfer is permitted under the Act and this Regulation; and (b)  the transferee agrees to administer the amount transferred in accordance with the Act and this Regulation. (1.5) The financial institution shall advise the transferee in writing that the amount transferred must be administered in accordance with the Act and this Regulation. (2) In the contract governing the fund, the financial institution must agree to make such a transfer within 30 days after the owner requests it.  This does not apply with respect to the transfer of assets held as securities whose term of investment extends beyond the 30-day period. (3) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner. Withdrawals from the Fund 8. (1) An application under section 9, 9.1, 10, 10.1, 10.2, 10.3 or 10.4 to withdraw money or transfer assets from a life income fund that is governed by this Schedule must be made on a form approved by the Chief Executive Officer and must be given to the financial institution that administers the fund. (2) The contract governing a life income fund that is governed by this Schedule must include the following terms and, if it does not, the contract is deemed to include them: 1.  The financial institution is entitled to rely upon the information provided by the owner in the application to withdraw money or transfer assets from the fund under section 9, 9.1, 10, 10.1, 10.2, 10.3 or 10.4, as the case may be. 2.  An application that meets the requirements of the applicable section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with that section. 3.  The financial institution is required to make the payment or transfer to which the owner is entitled under the applicable section within 30 days after the financial institution receives the completed application and the accompanying documents required by that section. 9. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all the money in the fund or transfer the assets to an RRSP or RRIF if, when the owner signs the application, (a)  he or she is at least 55 years of age; and (b)  the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year. (2), (3) Revoked: O. Reg. 185/13, s. 3 (3). (4) The application form must be signed by the owner and accompanied by, (a)  a declaration described in section 11 about a spouse; or (b)  a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (5) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner. (6) The contract governing the fund must include the following term and, if it does not, the contract is deemed to include it: 1.  The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application. 9.1 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all the money in the fund, (a)  if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act
(Canada); and (b)  if the application is made at least 24 months after his or her date of departure from Canada. (2), (3) Revoked: O. Reg. 185/13, s. 3 (5). (4) The application form must be signed by the owner and accompanied by the following documents: 1.  A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the
Income Tax Act (Canada). 2.  Either a declaration described in section 11 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (5) Revoked: O. Reg. 185/13, s. 3 (5). 10. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if, when the owner signs the application, he or she has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years. (2), (3) Revoked: O. Reg. 185/13, s. 3 (6). (4) The application form must be signed by the owner and be accompanied by the following documents: 1.  A statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the owner has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years. 2.  A declaration described in section 11 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (5) Revoked: O. Reg. 185/13, s. 3 (6). 10.1 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if the owner, his or her spouse, or a dependant has incurred or will incur medical expenses relating to an illness or physical disability of any of them. (2) Only one application may be made under this section during a calendar year in respect of a particular person. (3) The application must specify the amount to be withdrawn from the fund. (4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “X” and “G” where, “X”  is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “G”  is the sum of the amount of the person’s medical expenses that have been incurred and an estimate of the total amount of the person’s medical expenses for the 12 months after the date on which the application is signed. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 11 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A statement signed by a physician or dentist, as applicable, indicating that, in his or her opinion, the expenses claimed are or were necessary for the person’s treatment.  The physician or dentist must be licensed to practise medicine or dentistry, as the case may be, in a jurisdiction in Canada. 3.  A copy of the receipts or the estimate to account for the total amount of the medical expenses being claimed. 4.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) For the purposes of this section, a person is a dependant if he or she was dependent on the owner or the owner’s spouse for support at some time during the calendar year in which the application is signed or during the previous calendar year. (8) For the purposes of this section, medical expenses include, (a)  expenses for goods and services of a medical or dental nature; and (b)  expenses incurred or to be incurred for renovations or alterations to the owner’s or the dependant’s principal residence (as defined in subsection 10.2 (7)) and any additional expenses incurred in the construction of a principal residence made necessary by the illness or physical disability of the owner, his or her spouse or a dependant. 10.2 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund, (a)  if the owner or his or her spouse 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; or (b)  if the owner or his or her spouse 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 amount in default remains unpaid. (2) Only one application may be made under this section during a calendar year. (3) The application must specify the amount to be withdrawn from the fund. (4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “X” and “H” where, “X”  is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “H”  is, with respect to arrears in the payment of rent, the sum of the total amount of arrears of rent and the total amount of rent payable for a period of 12 months or, with respect to a default on a secured debt, the sum of the total amount of the payments that are in default and the total amount of payments due and interest payable on the debt for the 12 months after the date on which the application is signed. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 11 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A copy of the written demand in respect of arrears in the payment of rent or in respect of the default on the secured debt, as the case may be. 3.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) In this section, “principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is occupied by the individual as his or her primary place of residence. 10.3 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if the owner or his or her spouse requires money to pay the first and last months’ rent to obtain a principal residence for the owner. (2) Only one application may be made under this section during a calendar year. (3) The application must specify the amount to be withdrawn from the fund. (4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “J” and “K” where, “J”  is 5 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “K”  is the amount required for the first and last months’ rent. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 11 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A copy of the rental agreement, if available. 3.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) In this section, “principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is intended to be occupied by the individual as his or her primary place of residence. 10.4 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed 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) Only one application may be made under this section during a calendar year. (3) The application must specify the amount to be withdrawn from the fund. (4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is calculated using the formula, X − L in which, “X”  is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “L”  is 75 per cent of the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 11 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A statement, signed by the owner, setting out the amount of his or her expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed. 3.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) For the purposes of this section, an owner’s expected total income from all sources, before taxes, does not include, (a)  a withdrawal under this section; (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)  the payment of an Ontario child benefit under section 8.6.2 of the Income Tax Act or under section 104 of the Taxation Act, 2007; (f)  a payment received by a foster parent as compensation in respect of the provision of foster care within the meaning of the Child, Youth and Family Services Act, 2017; or (g)  child support payments received under a court order or an agreement. 11. Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 9, 9.1, 10, 10.1, 10.2, 10.3 or 10.4 from a life income fund that is governed by this Schedule: 1.  A statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal or transfer from the fund. 2.  A statement signed by the owner attesting to the fact that he or she does not have a spouse. 3.  A statement signed by the owner attesting to the fact that he or she is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer from the fund. 12. (1) If the owner of a life income fund that is governed by this Schedule is required by section 9, 9.1, 10, 10.1, 10.2, 10.3 or 10.4 to give a document to a financial institution, the document is a nullity in the following circumstances: 1.  If the document is one that must be signed by the owner or by his or her spouse, it is a nullity if it is signed by either of them more than 60 days before the financial institution receives it. 2.  In any other case, if the document is required by section 10.1, 10.2, 10.3 or 10.4, it is a nullity if it is signed or dated more than 12 months before the financial institution receives it. (2) When the financial institution receives a document required by section 9, 9.1, 10, 10.1, 10.2, 10.3 or 10.4, the financial institution shall give the owner of the life income fund a receipt for the document stating the date on which it was received. Survivor’s Benefits 13. (1) Upon the death of the owner of a life income fund that is governed by this Schedule, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the fund. (1.1) The benefit described in subsection (1) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada). (2) A spouse of the owner is not entitled to receive the value of the assets in the fund unless the owner was a member or former member of a pension plan from which assets were transferred directly or indirectly to purchase the fund. (3) A spouse living separate and apart from the owner on the date of the owner’s death is not entitled to receive the value of the assets in the fund. (4) For the purposes of subsection (1), a determination as to whether the owner has a spouse is to be made on the date of the owner’s death. (5) For the purposes of subsection (1), the value of the assets in the fund includes all accumulated investment earnings, including any unrealized capital gains and losses, of the fund from the date of death until the date of payment. 13.1 (1) A spouse of the owner of a life income fund that is governed by this Schedule may waive his or her entitlement to receive the survivor’s benefit described in section 13 from the fund by delivering to the financial institution a written waiver in a form approved by the Chief Executive Officer. (2) A spouse who has delivered a waiver under subsection (1) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the fund. Amending the Fund 14. (1) In the contract governing a life income fund that is governed by this Schedule, the financial institution providing the fund must agree not to amend the contract except as provided in this section. (2) The financial institution must give the owner of the fund at least 90 days notice of a proposed amendment, other than an amendment described in subsection (3). (3) The financial institution must not amend the contract governing the fund if the amendment would result in a reduction in the owner’s rights under the contract unless, (a)  the financial institution is required by law to make the amendment; and (b)  the owner is entitled to transfer the assets in the fund under the terms of the contract that exist before the amendment is made. (4) When making an amendment described in subsection (3), the financial institution must notify the owner of the fund of the nature of the amendment and allow the owner at least 90 days after the notice is given to transfer all or part of the assets in the fund. (5) Notices under this section must be in writing and must be sent to the owner’s address as set out in the records of the financial institution. Information to be Provided by the Financial Institution 15. (1) In the contract governing a life income fund that is governed by this Schedule, the financial institution must agree to provide the information described in this section to the person indicated. (2) At the beginning of each fiscal year, the following information must be provided to the owner: 1.  With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings, including any unrealized capital gains or losses, the payments made out of the fund, the withdrawals taken out of the fund and the fees charged against the fund. 2.  The value of the assets in the fund as of the beginning of the fiscal year. 3.  The minimum amount that must be paid out of the fund to the owner during the current fiscal year. 4.  The maximum amount that may be paid out of the fund to the owner during the current fiscal year. (3) If the assets in the fund are transferred as described in subsection 7 (1), the owner must be given the information described in subsection (2) determined as of the date of the transfer. (4) Upon the death of the owner, the person entitled to receive the assets in the fund must be given the information described in subsection (2) determined as of the date of the owner’s death. (5) Revoked: O. Reg. 185/13, s. 3 (11). O. Reg. 144/00, s. 32; O. Reg. 324/05, s. 20; O. Reg. 116/06, s. 21; O. Reg. 416/07, s. 9; O. Reg. 239/09, ss. 15-25; O. Reg. 288/11, s. 6; O. Reg. 185/13, s. 3; O. Reg. 180/18, s. 2; O. Reg. 149/19, s. 1; O. Reg. 369/19, s. 4. schedule 1.1   life income funds governed by this schedule Establishing the Fund 1. (1) The following persons may purchase, in accordance with this section, a life income fund that is governed by this Schedule: 1.  A former member or retired member who is entitled to make a transfer under clause 42 (1) (b) or subsection 42 (12) of the Act. 2.  A spouse or former spouse of a person described in paragraph 1. 3.  A retired member or specified beneficiary who is entitled to make a transfer under subsection 39.1 (4) of the Act. 4.  A person who has previously transferred an amount under subsection 39.1 (4), clause 42 (1) (b) or subsection 42 (12) of the Act into a locked-in retirement account. 5.  A person who has previously transferred an amount under paragraph 2 of subsection 67.3 (2) or paragraph 2 of subsection 67.8 (2) of the Act into a life income fund or a locked-in retirement account. 6.  An eligible spouse who is entitled to transfer a lump sum under paragraph 2 of subsection 67.3 (2) or paragraph 2 of subsection 67.8 (2) of the Act. (2) The fund must be purchased using all or part of the amount transferred under subsection 39.1 (4), clause 42 (1) (b), subsection 42 (12), paragraph 2 of subsection 67.3 (2) or paragraph 2 of subsection 67.8 (2) of the Act, or using all or part of the assets in a life income fund, a locked-in retirement account or a locked-in retirement income fund. (3) The purchaser must have the written consent of his or her spouse in order to make the purchase, but, (a)  the consent of a spouse who is living separate and apart from the purchaser on the date of purchase is not required; (b)  the consent of a spouse is not required if none of the money to be transferred into the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the purchaser; and (c)  the consent of a spouse is not required in respect of a transfer under subsection 39.1 (4) of the Act. 2. (1) A contract establishing a life income fund that is governed by this Schedule must provide for the matters described in this section. (2) It must indicate the name and address of the financial institution providing the fund. (3) It must describe the owner’s powers, if any, respecting investment of the assets in the fund. (4) It must state that the owner agrees not to assign, charge, anticipate or give as security money payable under the fund except as required by an order under the Family Law Act, a family arbitration award or a domestic contract. (5) It must describe the method for determining the value of the assets in the fund. (6) It must indicate whether the commuted value of the pension benefit that was transferred into the fund was determined in a manner that differentiated on the basis of sex. 3. (1) Money in a life income fund that is governed by this Schedule cannot be commuted, withdrawn or surrendered in whole or in part, except as permitted by section 49 or 67 of the Act, section 22.2 of this Regulation or this Schedule. (2) Every contract establishing a life income fund that is governed by this Schedule is deemed to include a provision setting out the restriction described in subsection (1). (3) Any transaction that contravenes subsection (1) is void. 4. The fiscal year of a life income fund that is governed by this Schedule must end on December 31 and must not exceed 12 months. Periodic Payments out of the Fund 5. (1) Payments out of a life income fund that is governed by this Schedule must begin no earlier than the earliest date on which the former member is entitled to receive a pension under any pension plan from which money was transferred into the fund directly or indirectly. (1.1) Despite subsection (1), payments out of the fund must begin no earlier than the date on which the owner reaches 55 years of age, if none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (2) Payments out of the fund must begin no later than the end of the second fiscal year of the fund. (3) The owner must notify the financial institution of the amount to be paid out of the fund each year.  If the owner does not do so, the minimum amount determined under section 6 must be paid out of the fund that year. (4) The notice respecting the amount to be paid out of the fund must be given either at the beginning of the fiscal year of the fund or at another time agreed to by the financial institution. (5) The notice expires at the end of the fiscal year to which it relates. (6) Revoked: O. Reg. 288/11, s. 7 (5). 6. (1) The amount of income paid during a fiscal year out of a life income fund that is governed by this Schedule must not exceed the greatest of the following amounts: 1.  The investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year. 2.  If the money in the fund (the “receiving fund”) is derived from money transferred directly from another life income fund or a locked-in retirement income fund (the “transferring fund”), and if the income is being paid out of the receiving fund in the fiscal year following the fiscal year in which the receiving fund is established, the sum of, i.  the investment earnings, including any unrealized capital gains or losses, of the transferring fund in the previous fiscal year, and ii.  the investment earnings, including any unrealized capital gains or losses, of the receiving fund in the previous fiscal year. 3.  The amount calculated using the formula, C/F in which, “C”  is the value of the assets in the fund at the beginning of the fiscal year, and “F”  is the present value, at the beginning of the fiscal year, of an annuity of $1 payable annually in advance over the period commencing at the beginning of the fiscal year and ending on December 31 of the year in which the owner reaches 90 years of age. (2) The following interest rate assumptions are to be used to determine the amount “F” in subsection (1): 1.  The interest rate for each of the first 15 fiscal years of the period referred to in the definition of “F” is the greater of 6 per cent and the nominal rate of interest on long-term bonds issued by the Government of Canada for November of the year before the beginning of the fiscal year, as determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122487 compiled by Statistics Canada and available on the website maintained by the Bank of Canada. 2.  For the sixteenth and each subsequent fiscal year of the period referred to in the definition of “F”, the interest rate is 6 per cent. (3) Despite subsection (1), if any money in the fund is derived from money transferred directly or indirectly from another life income fund or a locked-in retirement income fund, the maximum amount that may be paid out of the fund in the fiscal year in which the money is transferred into the fund is zero. (4) If the initial fiscal year of the fund is not 12 months long, the maximum amount determined under subsection (1) shall be adjusted in proportion to the number of months in that fiscal year divided by 12, with any part of an incomplete month counting as one month. (5) The amount of income paid out of the fund during a fiscal year must not be less than the minimum amount prescribed for an RRIF under the Income Tax Act (Canada). (6) If the minimum amount specified by subsection (5) is greater than the maximum amount determined under subsection (1), (3) or (4), the minimum amount must be paid out of the fund during the fiscal year. (7) This section shall not be construed to prevent or limit a payment from the fund that is permitted under section 3, 8, 9, 10, 11, 11.1, 11.2, 11.3 or 11.4 of this Schedule or under section 22.2 of this Regulation. Transferring Assets from the Fund 7. (1) The owner of a life income fund that is governed by this Schedule may transfer any or all of the assets in it to another life income fund that is governed by this Schedule, to a variable benefit account or to purchase an immediate life annuity that meets the requirements of section 22. (2) In the contract governing the fund, the financial institution must agree to make such a transfer within 30 days after the owner requests it.  This does not apply with respect to the transfer of assets held as securities whose term of investment extends beyond the 30-day period. (3) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner. (4) For the purposes of the purchase of an immediate life annuity referred to in subsection (1), a determination as to whether the owner has a spouse is to be made on the date the annuity is purchased. (5) The value of the assets in the fund is subject to division in accordance with the terms of an order under the Family Law Act, a family arbitration award or a domestic contract. (5.1) An order under Part I (Family Property) of the Family Law Act, a family arbitration award or a domestic contract is not effective to the extent that it purports to entitle a spouse or former spouse of the owner to the transfer of a lump sum that exceeds 50 per cent of the assets in the fund, determined as of the family law valuation date. (5.2) Payments under a life annuity referred to in subsection (1) are subject to division in accordance with the terms of an order under the Family Law Act, a family arbitration award or a domestic contract. (5.3) An order under Part I (Family Property) of the Family Law Act, a family arbitration award or a domestic contract is not effective to the extent that it purports to entitle a spouse or former spouse of the owner to a share that exceeds 50 per cent of the payments under the life annuity, determined as of the family law valuation date. (6) A life annuity referred to in subsection (1) shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the fund was determined in a manner that did not differentiate on the basis of sex. (7) The financial institution shall not make a transfer described in subsection (1) except where, (a)  the transfer is permitted under the Act and this Regulation; and (b)  the transferee agrees to administer the amount transferred in accordance with the Act and this Regulation. (8) The financial institution shall advise the transferee in writing that the amount transferred must be administered in accordance with the Act and this Regulation. Withdrawals from the Fund 7.1 (1) An application under section 8, 9, 10, 11, 11.1, 11.2, 11.3 or 11.4 to withdraw money or transfer assets from a life income fund that is governed by this Schedule must be made on a form approved by the Chief Executive Officer and must be given to the financial institution that administers the fund. (2) The contract governing a life income fund that is governed by this Schedule must include the following terms and, if it does not, the contract is deemed to include them: 1.  The financial institution is entitled to rely upon the information provided by the owner in the application to withdraw money or transfer assets from the fund under section 8, 9, 10, 11, 11.1, 11.2, 11.3 or 11.4, as the case may be. 2.  An application that meets the requirements of the applicable section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with that section. 3.  The financial institution is required to make the payment or transfer to which the owner is entitled under the applicable section within 30 days after the financial institution receives the completed application and the accompanying documents required by that section. 8. (1) This section applies if assets are transferred into a life income fund that is governed by this Schedule (the “receiving fund”) from a pension fund, a locked-in retirement account, a locked-in retirement income fund or another life income fund. (2) Revoked: O. Reg. 185/13, s. 4 (3). (2.1) The owner of the receiving fund may, upon application in accordance with this section, either withdraw from the fund or transfer from it to an RRSP or RRIF an amount representing up to 50 per cent of the total market value of the assets transferred into the fund in relation to a transfer of assets made on or after January 1, 2010. (3) Despite subsection (2.1), if the assets are transferred into the receiving fund from a life income fund or a locked-in retirement income fund, the owner cannot make a withdrawal or transfer described in subsection (2.1) unless the transfer of assets into the receiving fund was made in accordance with the terms of an order under the Family Law Act, a family arbitration award or a domestic contract. (3.1) Despite subsection (2.1), if the assets are transferred into the receiving fund from a variable benefit account, the owner cannot make a withdrawal or transfer described in subsection (2.1). (4) An application for a withdrawal or transfer described in subsection (2.1) must be given to the financial institution that administers the receiving fund within 60 days after the assets are transferred into the fund. (5) Revoked: O. Reg. 185/13, s. 4 (6). (6) The application form must be signed by the owner and accompanied by one of the following documents: 1.  A declaration described in section 12 about a spouse. 2.  A statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (7) If assets in the receiving fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner. (8) The contract governing the fund must include the following term and, if it does not, the contract is deemed to include it: 1.  The total market value of the assets transferred into the fund is to be determined as of the date the assets were transferred into the fund. 8.1 Revoked: O. Reg. 185/13, s. 4 (8). 9. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all the money in the fund or transfer the assets to an RRSP or RRIF if, when the owner signs the application, (a)  he or she is at least 55 years of age; and (b)  the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year. (2), (3) Revoked: O. Reg. 185/13, s. 4 (9). (4) The application form must be signed by the owner and accompanied by one of the following documents: 1.  A declaration described in section 12 about a spouse. 2.  A statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (5) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner. (6) The contract governing the fund must include the following term and, if it does not, the contract is deemed to include it: 1.  The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application. 10. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all the money in the fund, (a)  if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act (Canada); and (b)  if the application is made at least 24 months after his or her date of departure from Canada. (2), (3) Revoked: O. Reg. 185/13, s. 4 (11). (4) The application form must be signed by the owner and accompanied by the following documents: 1.  A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the
Income Tax Act (Canada). 2.  Either a declaration described in section 12 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (5) Revoked: O. Reg. 185/13, s. 4 (11). 11. (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if, when the owner signs the application, he or she has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years. (2), (3) Revoked: O. Reg. 185/13, s. 4 (12). (4) The application form must be signed by the owner and be accompanied by the following documents: 1.  A statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the owner has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years. 2.  Either a declaration described in section 12 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (5) Revoked: O. Reg. 185/13, s. 4 (12). 11.1 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if the owner, his or her spouse, or a dependant has incurred or will incur medical expenses relating to an illness or physical disability of any of them. (2) Only one application may be made under this section during a calendar year in respect of a particular person. (3) The application must specify the amount to be withdrawn from the fund. (4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “X” and “G” where, “X”  is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “G”  is the sum of the amount of the person’s medical expenses that have been incurred and an estimate of the total amount of the person’s medical expenses for the 12 months after the date on which the application is signed. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 12 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A statement signed by a physician or dentist, as applicable, indicating that, in his or her opinion, the expenses claimed are or were necessary for the person’s treatment.  The physician or dentist must be licensed to practise medicine or dentistry, as the case may be, in a jurisdiction in Canada. 3.  A copy of the receipts or the estimate to account for the total amount of the medical expenses being claimed. 4.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) For the purposes of this section, a person is a dependant if he or she was dependent on the owner or the owner’s spouse for support at some time during the calendar year in which the application is signed or during the previous calendar year. (8) For the purposes of this section, medical expenses include, (a)  expenses for goods and services of a medical or dental nature; and (b)  expenses incurred or to be incurred for renovations or alterations to the owner’s or the dependant’s principal residence (as defined in subsection 11.2 (7)) and any additional expenses incurred in the construction of a principal residence made necessary by the illness or physical disability of the owner, his or her spouse or a dependant. 11.2 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund, (a)  if the owner or his or her spouse 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; or (b)  if the owner or his or her spouse 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 amount in default remains unpaid. (2) Only one application may be made under this section during a calendar year. (3) The application must specify the amount to be withdrawn from the fund. (4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “X” and “H” where, “X”  is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “H”  is, with respect to arrears in the payment of rent, the sum of the total amount of arrears of rent and the total amount of rent payable for a period of 12 months or, with respect to a default on a secured debt, the sum of the total amount of the payments that are in default and the total amount of payments due and interest payable on the debt for the 12 months after the date on which the application is signed. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 12 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A copy of the written demand in respect of arrears in the payment of rent or in respect of the default on the secured debt, as the case may be. 3.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) In this section, “principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is occupied by the individual as his or her primary place of residence. 11.3 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if the owner or his or her spouse requires money to pay the first and last months’ rent to obtain a principal residence for the owner. (2) Only one application may be made under this section during a calendar year. (3) The application must specify the amount to be withdrawn from the fund. (4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “J” and “K” where, “J”  is 5 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “K”  is the amount required for the first and last months’ rent. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 12 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A copy of the rental agreement, if available. 3.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) In this section, “principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is intended to be occupied by the individual as his or her primary place of residence. 11.4 (1) The owner of a life income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed 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) Only one application may be made under this section during a calendar year. (3) The application must specify the amount to be withdrawn from the fund. (4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is calculated using the formula, X − L in which, “X”  is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “L”  is 75 per cent of the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 12 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A statement, signed by the owner, setting out the amount of his or her expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed. 3.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) For the purposes of this section, an owner’s expected total income from all sources, before taxes, does not include, (a)  a withdrawal under this section; (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)  the payment of an Ontario child benefit under section 8.6.2 of the Income Tax Act
or under section 104 of the Taxation Act, 2007; (f)  a payment received by a foster parent as compensation in respect of the provision of foster care within the meaning of the Child, Youth and Family Services Act, 2017; or (g)  child support payments received under a court order or an agreement. 12. Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 8, 9, 10, 11, 11.1, 11.2, 11.3 or 11.4 from a life income fund that is governed by this Schedule: 1.  A statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal or transfer from the fund. 2.  A statement signed by the owner attesting to the fact that he or she does not have a spouse. 3.  A statement signed by the owner attesting to the fact that he or she is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer from the fund. 13. (1) If the owner of a life income fund that is governed by this Schedule is required by section 8, 9, 10, 11, 11.1, 11.2, 11.3 or 11.4 to give a document to a financial institution, the document is a nullity in the following circumstances: 1.  If the document is one that must be signed by the owner or by his or her spouse, it is a nullity if it is signed by either of them more than 60 days before the financial institution receives it. 2.  In any other case, if the document is required by section 11.1, 11.2, 11.3 or 11.4, it is a nullity if it is signed or dated more than 12 months before the financial institution receives it. (2) When the financial institution receives a document required by section 8, 9, 10, 11, 11.1, 11.2, 11.3 or 11.4, the financial institution shall give the owner of the life income fund a receipt for the document stating the date on which it was received. Survivor’s Benefits 14. (1) Upon the death of the owner of a life income fund that is governed by this Schedule, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the fund. (2) The benefit described in subsection (1) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada). (3) A spouse of the owner is not entitled to receive the value of the assets in the fund unless the owner was a member or former member of a pension plan from which assets were transferred directly or indirectly to purchase the fund. (4) A spouse who is living separate and apart from the owner on the date of the owner’s death is not entitled to receive the value of the assets in the fund. (5) For the purposes of subsection (1), a determination as to whether the owner has a spouse is to be made on the date of the owner’s death. (6) For the purposes of subsection (1), the value of the assets in the fund includes all accumulated investment earnings, including any unrealized capital gains and losses, of the fund from the date of death until the date of payment. 15. (1) A spouse of the owner of a life income fund that is governed by this Schedule may waive his or her entitlement to receive the survivor’s benefit described in section 14 from the fund by delivering to the financial institution a written waiver in a form approved by the Chief Executive Officer. (2) A spouse who has delivered a waiver under subsection (1) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the fund. Amending the Fund 16. (1) In the contract governing a life income fund that is governed by this Schedule, the financial institution providing the fund must agree not to amend the contract except as provided in this section. (2) The financial institution must give the owner of the fund at least 90 days notice of a proposed amendment, other than an amendment described in subsection (3). (3) The financial institution must not amend the contract governing the fund if the amendment would result in a reduction in the owner’s rights under the contract unless, (a)  the financial institution is required by law to make the amendment; and (b)  the owner is entitled to transfer the assets in the fund under the terms of the contract that exist before the amendment is made. (4) When making an amendment described in subsection (3), the financial institution must notify the owner of the fund of the nature of the amendment and allow the owner at least 90 days after the notice is given to transfer all or part of the assets in the fund. (5) Notices under this section must be in writing and must be sent to the owner’s address as set out in the records of the financial institution. Information to be Provided by the Financial Institution 17. (1) In the contract governing a life income fund that is governed by this Schedule, the financial institution must agree to provide the information described in this section to the person indicated. (2) At the beginning of each fiscal year, the following information must be provided to the owner: 1.  With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings, including any unrealized capital gains or losses, the payments made out of the fund, the withdrawals taken out of the fund and the fees charged against the fund. 2.  The value of the assets in the fund as of the beginning of the fiscal year. 3.  The minimum amount that must be paid out of the fund to the owner during the current fiscal year. 4.  The maximum amount that may be paid out of the fund to the owner during the current fiscal year. (3) If the assets in the fund are transferred as described in subsection 7 (1), the owner must be given the information described in subsection (2) determined as of the date of the transfer. (4) Upon the death of the owner, the person entitled to receive the assets in the fund must be given the information described in subsection (2) determined as of the date of the owner’s death. (5) Revoked: O. Reg. 185/13, s. 4 (17). O. Reg. 416/07, s. 10; O. Reg. 239/09, ss. 26-33; O. Reg. 288/11, s. 7; O. Reg. 185/13, s. 4; O. Reg. 49/17, s. 8; O. Reg. 180/18, s. 3; O. Reg. 149/19, s. 1; O. Reg. 369/19, s. 5. Schedule 2   LOCKED-IN RETIREMENT INCOME FUND REQUIREMENTS Establishing the Fund 1. (1) A locked-in retirement income fund cannot be purchased after December 31, 2008. (2) After December 31, 2008, money cannot be transferred into a locked-in retirement income fund from a pension fund, another locked-in retirement income fund, a life income fund, a locked-in retirement account or a life annuity that meets the requirements of section 22 of this Regulation. 2. (1) A contract establishing a locked-in retirement income fund must provide for the matters described in this section. (2) It must indicate the name and address of the financial institution providing the fund. (3) It must describe the owner’s powers, if any, respecting investment of the assets in the fund. (4) It must state that the owner agrees not to assign, charge, anticipate or give as security money payable under the fund except as required by an order under the Family Law Act, a family arbitration award or a domestic contract. (5) It must describe the method for determining the value of the assets in the fund. (6) It must indicate whether the commuted value of the pension benefit that was transferred into the fund was determined in a manner that differentiated on the basis of sex. 3. (1) Money in a locked-in retirement income fund cannot be commuted, withdrawn or surrendered in whole or in part, except as permitted by section 49 or 67 of the Act, section 22.2 of this Regulation or this Schedule. (2) Every contract establishing a locked-in retirement income fund shall be deemed to include a provision setting out the restriction described in subsection (1). (3) Any transaction that contravenes subsection (1) is void. 4. The fiscal year of a locked-in retirement income fund must end on December 31 and must not exceed 12 months. Periodic Payments out of the Fund 5. (1) Payments out of the locked-in retirement income fund must begin no earlier than the earliest date on which the former member is entitled to receive a pension under any pension plan from which money was transferred into the fund directly or indirectly. (2) Payments out of the fund must begin no later than the end of the second fiscal year of the fund. (3) The owner must notify the financial institution of the amount to be paid out of the fund each year.  If the owner does not do so, the minimum amount determined under section 6 shall be paid out of the fund that year. (4) The notice respecting the amount to be paid out of the fund must be given either at the beginning of the fiscal year of the fund or at another time agreed to by the financial institution. (5) The notice expires at the end of the fiscal year to which it relates. (6) Revoked: O. Reg. 288/11, s. 8 (2). 6. (1) The amount of income paid during a fiscal year out of a locked-in retirement income fund that is governed by this Schedule must not exceed the greater of “A” and “B” where, “A”  is the amount of the investment earnings, including any unrealized capital gains or losses, of the fund in the previous fiscal year, and “B”  is the amount calculated using the formula, C/F in which, “C”  is the value of the assets in the fund at the beginning of the fiscal year, and “F”  is the present value, at the beginning of the fiscal year, of an annuity of $1 payable annually in advance over the period commencing at the beginning of the fiscal year and ending on December 31 of the year in which the owner reaches 90 years of age. (2) The following interest rate assumptions are to be used to determine the amount “F” in the definition of “B” in subsection (1): 1.  The interest rate for each of the first 15 fiscal years of the period referred to in the definition of “F” is the greater of 6 per cent and the nominal rate of interest on long-term bonds issued by the Government of Canada for November of the year before the beginning of the fiscal year, as determined from the Canadian Socio-Economic Information Management System (CANSIM) series V122487 compiled by Statistics Canada and available on the website maintained by the Bank of Canada. 2.  For the 16th and each subsequent fiscal year of the period referred to in the definition of “F”, the interest rate is 6 per cent. (3) The amount of income paid out of the fund during a fiscal year must not be less than the minimum amount prescribed for an RRIF under the Income Tax Act (Canada). (4) If the minimum amount specified by subsection (3) is greater than the maximum amount determined under subsection (1), the minimum amount must be paid out of the fund during the fiscal year. (5) This section shall not be construed to prevent or limit a payment from the fund that is permitted under section 3, 8, 8.1, 9, 9.1, 9.2, 9.3 or 9.4 of this Schedule or under section 22.2 of this Regulation. Transferring Assets from the Fund 7. (1) The owner of a locked-in retirement income fund may transfer any or all of the assets in it, (a)  to a life income fund that is governed by Schedule 1.1; (b)  to a variable benefit account; or (c)  to purchase an immediate life annuity that meets the requirements of section 22 of this Regulation; (d)-(f) Revoked:  O. Reg. 239/09, s. 37 (1). (1.1) For the purposes of the life annuity referred to in clause (1) (c), a determination as to whether the owner has a spouse is to be made on the date the annuity is purchased. (1.2) The value of the assets in the fund is subject to division in accordance with the terms of an order under the Family Law Act, a family arbitration award or a domestic contract. (1.3) An order under Part I (Family Property) of the Family Law Act, a family arbitration award or a domestic contract is not effective to the extent that it purports to entitle a spouse or former spouse of the owner to the transfer of a lump sum that exceeds 50 per cent of the assets in the fund, determined as of the family law valuation date. (1.4) Payments under a life annuity referred to in clause (1) (c) are subject to division in accordance with the terms of an order under the Family Law Act, a family arbitration award or a domestic contract. (1.5) An order under Part I (Family Property) of the Family Law Act, a family arbitration award or a domestic contract is not effective to the extent that it purports to entitle a spouse or former spouse of the owner to a share that exceeds 50 per cent of the payments under the life annuity, determined as of the family law valuation date. (2) In the contract governing the fund, the financial institution must agree to make such a transfer within 30 days after the owner requests it.  This does not apply with respect to the transfer of assets held as securities whose term of investment extends beyond the 30-day period. (3) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner. (4) A life annuity referred to in subsection (1) shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the fund was determined in a manner that did not differentiate on the basis of sex. (5) The financial institution shall not make a transfer described in subsection (1) except where, (a)  the transfer is permitted under the Act and this Regulation; and (b)  the transferee agrees to administer the amount transferred in accordance with the Act and this Regulation. (6) The financial institution shall advise the transferee in writing that the amount transferred must be administered in accordance with the Act and this Regulation. Withdrawals from the Fund 7.1 (1) An application under section 8, 8.1, 9, 9.1, 9.2, 9.3 or 9.4 to withdraw money or transfer assets from a locked-in retirement income fund that is governed by this Schedule must be made on a form approved by the Chief Executive Officer and must be given to the financial institution that administers the fund. (2) The contract governing a locked-in retirement income fund that is governed by this Schedule must include the following terms and, if it does not, the contract is deemed to include them: 1.  The financial institution is entitled to rely upon the information provided by the owner in the application to withdraw money or transfer assets from the fund under section 8, 8.1, 9, 9.1, 9.2, 9.3 or 9.4, as the case may be. 2.  An application that meets the requirements of the applicable section constitutes authorization to the financial institution to make the payment or transfer from the fund in accordance with that section. 3.  The financial institution is required to make the payment or transfer to which the owner is entitled under the applicable section within 30 days after the financial institution receives the completed application and the accompanying documents required by that section. 8. (1) The owner of a locked-in retirement income fund may, upon application in accordance with this section, withdraw all the money in the fund or transfer the assets to an RRSP or RRIF if, when the owner signs the application, (a)  he or she is at least 55 years of age; and (b)  the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year. (2), (3) Revoked: O. Reg. 185/13, s. 5 (3). (4) The application form must be signed by the owner and accompanied by, (a)  a declaration described in section 10 about a spouse; or (b)  a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (5) If assets in the fund consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner. (6) The contract governing the fund must include the following term and, if it does not, the contract is deemed to include it: 1.  The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application. 8.1 (1) The owner of a locked-in retirement income fund may, upon application in accordance with this section, withdraw all the money in the fund, (a)  if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act
(Canada); and (b)  if the application is made at least 24 months after his or her date of departure from Canada. (2), (3) Revoked: O. Reg. 185/13, s. 5 (5). (4) The application form must be signed by the owner and accompanied by the following documents: 1.  A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the
Income Tax Act (Canada). 2.  Either a declaration described in section 10 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (5) Revoked: O. Reg. 185/13, s. 5 (5). 9. (1) The owner of a locked-in retirement income fund may, upon application in accordance with this section, withdraw all or part of the money in the fund if, when the owner signs the application, he or she has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years. (2), (3) Revoked: O. Reg. 185/13, s. 5 (6). (4) The application form must be signed by the owner and accompanied by the following documents: 1.  A statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the owner has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years. 2.  A declaration described in section 10 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (5) Revoked: O. Reg. 185/13, s. 5 (6). 9.1 (1) The owner of a locked-in retirement income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if the owner, his or her spouse, or a dependant has incurred or will incur medical expenses relating to an illness or physical disability of any of them. (2) Only one application may be made under this section during a calendar year in respect of a particular person. (3) The application must specify the amount to be withdrawn from the fund. (4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “X” and “G” where, “X”  is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “G”  is the sum of the amount of the person’s medical expenses that have been incurred and an estimate of the total amount of the person’s medical expenses for the 12 months after the date on which the application is signed. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 10 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A statement signed by a physician or dentist, as applicable, indicating that, in his or her opinion, the expenses claimed are or were necessary for the person’s treatment.  The physician or dentist must be licensed to practise medicine or dentistry, as the case may be, in a jurisdiction in Canada. 3.  A copy of the receipts or the estimate to account for the total amount of the medical expenses being claimed. 4.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) For the purposes of this section, a person is a dependant if he or she was dependent on the owner or the owner’s spouse for support at some time during the calendar year in which the application is signed or during the previous calendar year. (8) For the purposes of this section, medical expenses include, (a)  expenses for goods and services of a medical or dental nature; and (b)  expenses incurred or to be incurred for renovations or alterations to the owner’s or the dependant’s principal residence (as defined in subsection 9.2 (7)) and any additional expenses incurred in the construction of a principal residence made necessary by the illness or physical disability of the owner, his or her spouse or a dependant. 9.2 (1) The owner of a locked-in retirement income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund, (a)  if the owner or his or her spouse 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; or (b)  if the owner or his or her spouse 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 amount in default remains unpaid. (2) Only one application may be made under this section during a calendar year. (3) The application must specify the amount to be withdrawn from the fund. (4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “X” and “H” where, “X”  is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “H”  is, with respect to arrears in the payment of rent, the sum of the total amount of arrears of rent and the total amount of rent payable for a period of 12 months or, with respect to a default on a secured debt, the sum of the total amount of the payments that are in default and the total amount of payments due and interest payable on the debt for the 12 months after the date on which the application is signed. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 10 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A copy of the written demand in respect of arrears in the payment of rent or in respect of the default on the secured debt, as the case may be. 3.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) In this section, “principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is occupied by the individual as his or her primary place of residence. 9.3 (1) The owner of a locked-in retirement income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if the owner or his or her spouse requires money to pay the first and last months’ rent to obtain a principal residence for the owner. (2) Only one application may be made under this section during a calendar year. (3) The application must specify the amount to be withdrawn from the fund. (4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is the lesser of “J” and “K” where, “J”  is 5 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “K”  is the amount required for the first and last months’ rent. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 10 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A copy of the rental agreement, if available. 3.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) In this section, “principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is intended to be occupied by the individual as his or her primary place of residence. 9.4 (1) The owner of a locked-in retirement income fund that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the fund if the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed 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) Only one application may be made under this section during a calendar year. (3) The application must specify the amount to be withdrawn from the fund. (4) The minimum amount that may be withdrawn from the fund with respect to an application is $500 and the maximum amount is calculated using the formula, X − L in which, “X”  is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “L”  is 75 per cent of the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the fund is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 10 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the fund is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A statement, signed by the owner, setting out the amount of his or her expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed. 3.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) For the purposes of this section, an owner’s expected total income from all sources, before taxes, does not include, (a)  a withdrawal under this section; (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)  the payment of an Ontario child benefit under section 8.6.2 of the Income Tax Act
or under section 104 of the Taxation Act, 2007; (f)  a payment received by a foster parent as compensation in respect of the provision of foster care within the meaning of the Child, Youth and Family Services Act, 2017; or (g)  child support payments received under a court order or an agreement. 10. Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 8, 8.1, 9, 9.1, 9.2, 9.3 or 9.4 from a locked-in retirement income fund: 1.  A statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal or transfer from the fund. 2.  A statement signed by the owner attesting to the fact that he or she does not have a spouse. 3.  A statement signed by the owner attesting to the fact that he or she is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer from the fund. 11. (1) If the owner of a locked-in retirement income fund that is governed by this Schedule is required by section 8, 8.1, 9, 9.1, 9.2, 9.3 or 9.4 to give a document to a financial institution, the document is a nullity in the following circumstances: 1.  If the document is one that must be signed by the owner or by his or her spouse, it is a nullity if it is signed by either of them more than 60 days before the financial institution receives it. 2.  In any other case, if the document is required by section 9.1, 9.2, 9.3 or 9.4, it is a nullity if it is signed or dated more than 12 months before the financial institution receives it. (2) When the financial institution receives a document required by section 8, 8.1, 9, 9.1, 9.2, 9.3 or 9.4, the financial institution shall give the owner of the locked-in retirement income fund a receipt for the document stating the date on which it was received. Survivor’s Benefits 12. (1) Upon the death of the owner of a locked-in retirement income fund, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the fund. (1.1) The benefit described in subsection (1) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada). (2) A spouse of the owner is not entitled to receive the value of the assets in the fund unless the owner was a member or former member of a pension plan from which assets were transferred directly or indirectly to purchase the fund. (3) A spouse living separate and apart from the owner on the date of the owner’s death is not entitled to receive the value of the assets in the fund. (4) For the purposes of subsection (1), a determination as to whether the owner has a spouse is to be made on the date of the owner’s death. (5) For the purposes of subsection (1), the value of the assets in the fund includes all accumulated investment earnings, including any unrealized capital gains and losses, of the fund from the date of death until the date of payment. 12.1 (1) A spouse of the owner of a locked-in retirement income fund may waive his or her entitlement to receive the survivor’s benefit described in section 12 from the fund by delivering to the financial institution a written waiver in a form approved by the Chief Executive Officer. (2) A spouse who has delivered a waiver under subsection (1) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the fund. Amending the Fund 13. (1) In the contract governing a locked-in retirement income fund, the financial institution providing the fund must agree not to amend the contract except as provided in this section. (2) The financial institution must give the owner of the fund at least 90 days notice of a proposed amendment, other than an amendment described in subsection (3). (3) The financial institution must not amend the contract governing the fund if the amendment would result in a reduction in the owner’s rights under the contract unless, (a)  the financial institution is required by law to make the amendment; and (b)  the owner is entitled to transfer the assets in the fund under the terms of the contract that exist before the amendment is made. (4) When making an amendment described in subsection (3), the financial institution must notify the owner of the fund of the nature of the amendment and allow the owner at least 90 days after the notice is given to transfer all or part of the assets in the fund. (5) Notices under this section must be in writing and must be sent to the owner’s address as set out in the records of the financial institution. Information to be Provided by the Financial Institution 14. (1) In the contract governing a locked-in retirement income fund, the financial institution must agree to provide the information described in this section to the person indicated. (2) At the beginning of each fiscal year, the following information must be provided to the owner: 1.  With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings, including any unrealized capital gains or losses, the payments made out of the fund, the withdrawals taken out of the fund and the fees charged against the fund. 2.  The value of the assets in the fund as of the beginning of the fiscal year. 3.  The minimum amount that must be paid out of the fund to the owner during the current fiscal year. 4.  The maximum amount that may be paid out of the fund to the owner during the current fiscal year. (3) If the assets in the fund are transferred as described in subsection 7 (1), the owner must be given the information described in subsection (2) determined as of the date of the transfer. (4) Upon the death of the owner, the person entitled to receive the assets in the fund must be given the information described in subsection (2) determined as of the date of the owner’s death. (5), (6) Revoked: O. Reg. 185/13, s. 5 (11). O. Reg. 144/00, s. 32; O. Reg. 324/05, s. 21; O. Reg. 416/07, s. 11; O. Reg. 239/09, ss. 34-44; O. Reg. 288/11, s. 8; O. Reg. 185/13, s. 5; O. Reg. 180/18, s. 4; O. Reg. 149/19, s. 1; O. Reg. 369/19, s. 6. Schedule 3   Locked-in retirement account requirements Establishing the Account 1. (1) The following persons may purchase a locked-in retirement account in accordance with this section: 1.  A former member or retired member who is entitled to make a transfer under clause 42 (1) (b) or subsection 42 (12) of the Act. 2.  A spouse or former spouse of a person described in paragraph 1. 3.  A retired member or specified beneficiary who is entitled to make a transfer under subsection 39.1 (4) of the Act. 4.  A person who has previously transferred an amount under subsection 39.1 (4), clause 42 (1) (b) or subsection 42 (12) of the Act into a locked-in retirement account. 5.  A person who has previously transferred an amount under paragraph 2 of subsection 67.3 (2) or paragraph 2 of subsection 67.8 (2) of the Act into a locked-in retirement account. 6.  An eligible spouse who is entitled to transfer a lump sum under paragraph 2 of subsection 67.3 (2) or paragraph 2 of subsection 67.8 (2) of the Act. (2) The account must be purchased using all or part of the amount transferred under subsection 39.1 (4), clause 42 (1) (b), subsection 42 (12), paragraph 2 of subsection 67.3 (2) or paragraph 2 of subsection 67.8 (2) of the Act, or using all or part of the assets in a locked-in retirement account. (3) For the purposes of this Schedule, a locked-in retirement account includes a contract made before June 24, 1994 to establish an RRSP for the purposes of a transfer under clause 42 (1) (b) of the Act or subsection 42 (12) of the Act. 2. (1) A contract establishing a locked-in retirement account must provide for the matters described in this section. (2) It must indicate the name and address of the financial institution providing the account. (3) It must describe the owner’s powers, if any, respecting investment of the assets in the account. (4) It must state that the owner agrees not to assign, charge, anticipate or give as security money in the account except as required by an order under the Family Law Act, a family arbitration award or a domestic contract. (5) It must describe the method for determining the value of the assets in the account. (6) It must indicate whether the commuted value of the pension benefit that was transferred into the account was determined in a manner that differentiated on the basis of sex. 3. (1) Money in a locked-in retirement account cannot be commuted, withdrawn or surrendered in whole or in part, except as permitted by section 49 or 67 of the Act, section 22.2 of this Regulation or this Schedule. (2) Every contract establishing a locked-in retirement account shall be deemed to include a provision setting out the restriction described in subsection (1). (3) Any transaction that contravenes subsection (1) is void. 4. The fiscal year of a locked-in retirement account must end on December 31 and must not exceed 12 months. Transferring Assets from the Account 5. (1) The owner of a locked-in retirement account may transfer any or all of the assets in it, (a)  to a pension plan registered under the pension benefits legislation in any Canadian jurisdiction; (a.1)  to a pension plan provided by a government in Canada; (b)  to another locked-in retirement account; (c)  to a life income fund that is governed by Schedule 1.1; or (d)  to purchase an immediate or deferred life annuity that meets the requirements of section 22 of this Regulation. (2) In the contract governing the account, the financial institution must agree to make such a transfer within 30 days after the owner requests it.  This does not apply with respect to the transfer of assets held as securities whose term of investment extends beyond the 30-day period. (3) If assets in the account consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner. (3.1) The value of the assets in the account is subject to division in accordance with the terms of an order under the Family Law Act, a family arbitration award or a domestic contract. (3.2) An order under Part I (Family Property) of the Family Law Act, a family arbitration award or a domestic contract is not effective to the extent that it purports to entitle a spouse or former spouse of the owner to the transfer of a lump sum that exceeds 50 per cent of the assets in the account, determined as of the family law valuation date. (4) For the purposes of the purchase of an immediate life annuity referred to in clause (1) (d), a determination as to whether the owner has a spouse is to be made on the date the annuity is purchased. (5) Payments under a life annuity referred to in clause (1) (d) are subject to division in accordance with the terms of an order under the Family Law Act, a family arbitration award or a domestic contract. (5.1) An order under Part I (Family Property) of the Family Law Act, a family arbitration award or a domestic contract is not effective to the extent that it purports to entitle a spouse or former spouse of the owner to a share that exceeds 50 per cent of the payments under the life annuity, determined as of the family law valuation date. (6) A life annuity referred to in clause (1) (d) shall not differentiate on the basis of the sex of the beneficiary if the commuted value of the pension benefit that was transferred into the account was determined in a manner that did not differentiate on the basis of sex. (7) Payments under a life annuity referred to in clause (1) (d) must not begin before the earlier of, (a)  the earliest date on which the owner of the annuity would have been entitled as a former member to receive pension benefits under the Act as a result of termination of employment or termination of membership in any pension plan, from which money was transferred directly or indirectly into the locked-in retirement account; or (b)  the earliest date on which the owner of the annuity would have been entitled as a former member to receive pension benefits under any pension plan described in clause (a) as a result of termination of employment or termination of membership in the plan. (7.1) Despite subsection (7), payments under the life annuity must begin no earlier than the date on which the owner reaches 55 years of age, if none of the money in the account used to purchase the annuity is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (8) The financial institution shall not make a transfer described in subsection (1) except where, (a)  the transfer is permitted under the Act and this Regulation; and (b)  the transferee agrees to administer the amount transferred in accordance with the Act and this Regulation. (9) The financial institution shall advise the transferee in writing that the amount transferred must be administered in accordance with the Act and this Regulation. Withdrawals from the Account 5.1 (1) An application under section 6, 7, 8, 8.1, 8.2, 8.3 or 8.4 to withdraw money or transfer assets from a locked-in retirement account that is governed by this Schedule must be made on a form approved by the Chief Executive Officer and must be given to the financial institution that administers the fund. (2) The contract governing a locked-in retirement account that is governed by this Schedule must include the following terms and, if it does not, the contract is deemed to include them: 1.  The financial institution is entitled to rely upon the information provided by the owner in the application to withdraw money or transfer assets from the account under section 6, 7, 8, 8.1, 8.2, 8.3 or 8.4, as the case may be. 2.  An application that meets the requirements of the applicable section constitutes authorization to the financial institution to make the payment or transfer from the account in accordance with that section. 3.  The financial institution is required to make the payment or transfer to which the owner is entitled under the applicable section within 30 days after the financial institution receives the completed application and the accompanying documents required by that section. 6. (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all the money in the account or transfer the assets to an RRSP or RRIF if, when the owner signs the application, (a)  he or she is at least 55 years of age; and (b)  the value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by him or her is less than 40 per cent of the Year’s Maximum Pensionable Earnings for that calendar year. (2), (3) Revoked: O. Reg. 185/13, s. 6 (2). (4) The application form must be signed by the owner and accompanied by one of the following documents: 1.  A declaration described in section 9 about a spouse. 2.  A statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (5) If assets in the account consist of identifiable and transferable securities, the financial institution may transfer the securities with the consent of the owner. (6) The contract governing the account must include the following term and, if it does not, the contract is deemed to include it: 1.  The value of all assets in all life income funds, locked-in retirement income funds and locked-in retirement accounts owned by the owner when he or she signs the application under this section is to be determined using the most recent statement about each fund or account given to the owner.  Each such statement must be dated within one year before the owner signs the application. 7. (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all the money in the account, (a)  if, when the owner signs the application, he or she is a non-resident of Canada as determined by the Canada Revenue Agency for the purposes of the Income Tax Act
(Canada); and (b)  if the application is made at least 24 months after his or her date of departure from Canada. (2), (3) Revoked: O. Reg. 185/13, s. 6 (4). (4) The application form must be signed by the owner and accompanied by the following documents: 1.  A written determination from the Canada Revenue Agency that the person is a non-resident for the purposes of the
Income Tax Act (Canada). 2.  Either a declaration described in section 9 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (5) Revoked: O. Reg. 185/13, s. 6 (4) 8. (1) The owner of a locked-in retirement account may, upon application in accordance with this section, withdraw all or part of the money in the account if, when the owner signs the application, he or she has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years. (2), (3) Revoked: O. Reg. 185/13, s. 6 (5). (4) The application form must be signed by the owner and be accompanied by the following documents: 1.  A statement signed by a physician who is licensed to practise medicine in a jurisdiction in Canada that, in the opinion of the physician, the owner has an illness or physical disability that is likely to shorten his or her life expectancy to less than two years. 2.  Either a declaration described in section 9 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. (5) Revoked: O. Reg. 185/13, s. 6 (5). 8.1 (1) The owner of a locked-in retirement account that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the account if the owner, his or her spouse, or a dependant has incurred or will incur medical expenses relating to an illness or physical disability of any of them. (2) Only one application may be made under this section during a calendar year in respect of a particular person. (3) The application must specify the amount to be withdrawn from the account. (4) The minimum amount that may be withdrawn from the account with respect to an application is $500 and the maximum amount is the lesser of “X” and “G” where, “X”  is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “G”  is the sum of the amount of the person’s medical expenses that have been incurred and an estimate of the total amount of the person’s medical expenses for the 12 months after the date on which the application is signed. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the account is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 9 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A statement signed by a physician or dentist, as applicable, indicating that, in his or her opinion, the expenses claimed are or were necessary for the person’s treatment.  The physician or dentist must be licensed to practise medicine or dentistry, as the case may be, in a jurisdiction in Canada. 3.  A copy of the receipts or the estimate to account for the total amount of the medical expenses being claimed. 4.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) For the purposes of this section, a person is a dependant if he or she was dependent on the owner or the owner’s spouse for support at some time during the calendar year in which the application is signed or during the previous calendar year. (8) For the purposes of this section, medical expenses include, (a)  expenses for goods and services of a medical or dental nature; and (b)  expenses incurred or to be incurred for renovations or alterations to the owner’s or the dependant’s principal residence (as defined in subsection 8.2 (7)) and any additional expenses incurred in the construction of a principal residence made necessary by the illness or physical disability of the owner, his or her spouse or a dependant. 8.2 (1) The owner of a locked-in retirement account that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the account, (a)  if the owner or his or her spouse 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; or (b)  if the owner or his or her spouse 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 amount in default remains unpaid. (2) Only one application may be made under this section during a calendar year. (3) The application must specify the amount to be withdrawn from the account. (4) The minimum amount that may be withdrawn from the account with respect to an application is $500 and the maximum amount is the lesser of “X” and “H” where, “X”  is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “H”  is, with respect to arrears in the payment of rent, the sum of the total amount of arrears of rent and the total amount of rent payable for a period of 12 months or, with respect to a default on a secured debt, the sum of the total amount of the payments that are in default and the total amount of payments due and interest payable on the debt for the 12 months after the date on which the application is signed. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the account is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 9 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A copy of the written demand in respect of arrears in the payment of rent or in respect of the default on the secured debt, as the case may be. 3.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) In this section, “principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is occupied by the individual as his or her primary place of residence. 8.3 (1) The owner of a locked-in retirement account that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the account if the owner or his or her spouse requires money to pay the first and last months’ rent to obtain a principal residence for the owner. (2) Only one application may be made under this section during a calendar year. (3) The application must specify the amount to be withdrawn from the account. (4) The minimum amount that may be withdrawn from the account with respect to an application is $500 and the maximum amount is the lesser of “J” and “K” where, “J”  is 5 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “K”  is the amount required for the first and last months’ rent. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the account is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 9 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A copy of the rental agreement, if available. 3.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) In this section, “principal residence” means, in respect of an individual, a premises, including a non-seasonal mobile home, that is intended to be occupied by the individual as his or her primary place of residence. 8.4 (1) The owner of a locked-in retirement account that is governed by this Schedule may, upon application in accordance with this section, withdraw all or part of the money in the account if the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed 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) Only one application may be made under this section during a calendar year. (3) The application must specify the amount to be withdrawn from the account. (4) The minimum amount that may be withdrawn from the account with respect to an application is $500 and the maximum amount is calculated using the formula, X − L in which, “X”  is 50 per cent of the Year’s Maximum Pensionable Earnings for the year in which the application is signed, and “L”  is 75 per cent of the owner’s expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed. (5) If the maximum amount calculated under subsection (4) is less than $500, no withdrawal from the account is permitted with respect to the application. (6) The application form must be signed by the owner and must be accompanied by the following documents: 1.  Either a declaration described in section 9 about a spouse or a statement signed by the owner attesting to the fact that none of the money in the account is derived, directly or indirectly, from a pension benefit provided in respect of any employment of the owner. 2.  A statement, signed by the owner, setting out the amount of his or her expected total income from all sources, before taxes, for the 12 months after the date on which the application is signed. 3.  A statement, signed by the owner, that he or she understands that any money released under this section will not be exempt under section 66 of the Act from execution, seizure or attachment. (7) For the purposes of this section, an owner’s expected total income from all sources, before taxes, does not include, (a)  a withdrawal under this section; (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)  the payment of an Ontario child benefit under section 8.6.2 of the Income Tax Act
or under section 104 of the Taxation Act, 2007; (f)  a payment received by a foster parent as compensation in respect of the provision of foster care within the meaning of the Child, Youth and Family Services Act, 2017; or (g)  child support payments received under a court order or an agreement. 9. Any of the following documents constitutes a declaration about a spouse for the purposes of a withdrawal or transfer under section 6, 7, 8, 8.1, 8.2, 8.3 or 8.4 from a locked-in retirement account: 1.  A statement signed by the owner’s spouse, if any, that the spouse consents to the withdrawal or transfer from the account. 2.  A statement signed by the owner attesting to the fact that he or she does not have a spouse. 3.  A statement signed by the owner attesting to the fact that he or she is living separate and apart from his or her spouse on the date the owner signs the application to make the withdrawal or transfer from the account. 10. (1) If the owner of a locked-in retirement account that is governed by this Schedule is required by section 6, 7, 8, 8.1, 8.2, 8.3 or 8.4 to give a document to a financial institution, the document is a nullity in the following circumstances: 1.  If the document is one that must be signed by the owner or by his or her spouse, it is a nullity if it is signed by either of them more than 60 days before the financial institution receives it. 2.  In any other case, if the document is required by section 8.1, 8.2, 8.3 or 8.4, it is a nullity if it is signed or dated more than 12 months before the financial institution receives it. (2) When the financial institution receives a document required by section 6, 7, 8, 8.1, 8.2, 8.3 or 8.4, the financial institution shall give the owner of the account a receipt for the document stating the date on which it was received. Survivor’s Benefits 11. (1) Upon the death of the owner of a locked-in retirement account, the owner’s spouse or, if there is none or if the spouse is otherwise disentitled, the owner’s named beneficiary or, if there is none, the owner’s estate is entitled to receive a benefit equal to the value of the assets in the account. (2) The benefit described in subsection (1) may be transferred to an RRSP or an RRIF in accordance with the Income Tax Act (Canada). (3) A spouse of the owner is not entitled to receive the value of the assets in the account unless the owner was a member or former member of a pension plan from which assets were transferred directly or indirectly to purchase the account. (4) A spouse who is living separate and apart from the owner on the date of the owner’s death is not entitled to receive the value of the assets in the account. (5) For the purposes of subsection (1), a determination as to whether the owner has a spouse is to be made on the date of the owner’s death. (6) For the purposes of subsection (1), the value of the assets in the account includes all accumulated investment earnings, including any unrealized capital gains and losses, of the account from the date of death until the date of payment. 12. (1) A spouse of the owner of a locked-in retirement account may waive his or her entitlement to receive the survivor’s benefit described in section 11 from the account by delivering to the financial institution a written waiver in a form approved by the Chief Executive Officer. (2) A spouse who has delivered a waiver under subsection (1) may cancel it by delivering a written and signed notice of cancellation to the financial institution before the date of the death of the owner of the account. Amending the Account 13. (1) In the contract governing a locked-in retirement account, the financial institution providing the account must agree not to amend the contract except as provided in this section. (2) The financial institution must give the owner of the account at least 90 days notice of a proposed amendment, other than an amendment described in subsection (3). (3) The financial institution must not amend the contract governing the account if the amendment would result in a reduction in the owner’s rights under the contract unless, (a)  the financial institution is required by law to make the amendment; and (b)  the owner is entitled to transfer the assets in the account under the terms of the contract that exist before the amendment is made. (4) When making an amendment described in subsection (3), the financial institution must notify the owner of the account of the nature of the amendment and allow the owner at least 90 days after the notice is given to transfer all or part of the assets in the account. (5) Notices under this section must be in writing and must be sent to the owner’s address as set out in the records of the financial institution. Information to be Provided by the Financial Institution 14. (1) In the contract governing a locked-in retirement account, the financial institution must agree to provide the information described in this section to the person indicated. (2) At the beginning of each fiscal year, the following information must be provided to the owner: 1.  With respect to the previous fiscal year:  the sums deposited, any accumulated investment earnings, including any unrealized capital gains or losses, the payments made out of the account, the withdrawals taken out of the account and the fees charged against the account. 2.  The value of the assets in the account as of the beginning of the fiscal year. (3) If the assets in the account are transferred as described in subsection 5 (1), the owner must be given the information described in subsection (2) determined as of the date of the transfer. (4) Upon the death of the owner, the person entitled to receive the assets in the account must be given the information described in subsection (2) determined as of the date of the owner’s death. O. Reg. 239/09, s. 45; O. Reg. 288/11, s. 9; O. Reg. 185/13, s. 6; O. Reg. 49/17, s. 9; O. Reg. 180/18, s. 5; O. Reg. 149/19, s. 1; O. Reg. 369/19, s. 7, 8. schedule 4   letters of credit Letter of credit 1. (1) A letter of credit provided under section 55.2 of the Act must be an irrevocable and unconditional standby letter of credit made in accordance with the rules set out in International Standby Practices ISP98, International Chamber of Commerce Publication No. 590. (2) It must be made payable to the trustee of the pension fund, in trust for the pension fund. (3) It must be payable in Canadian currency. (4) It must make the issuer contractually liable to pay out money under its terms if payment is demanded under it by the trustee of the pension fund. (5) It must be subject to a trust agreement described in section 4 of this Schedule between the issuer, the administrator of the pension plan and the trustee. Issuer 2. (1) The issuer of a letter of credit must be a member of the Canadian Payments Association and must be a bank as defined in section 2 of the Bank Act (Canada), a credit union as defined in section 1 of the Credit Unions and Caisses Populaires Act, 2020, a credit union or caisse populaire incorporated under the laws of any other province of Canada or a cooperative credit society to which the Cooperative Credit Associations Act (Canada) applies. (2) The issuer of a letter of credit to be held in trust for a pension fund cannot be the employer or an affiliate of the employer within the meaning of the Business Corporations Act. (3) When the letter of credit is issued or renewed, the issuer must have a credit rating, given by a credit rating agency, that is at least equal to one of the following ratings: 1.  A, from Dominion Bond Rating Service Limited. 2.  A, from Fitch Ratings. 3.  A2, from Moody’s Investors Service. 4.  A, from Standard & Poor’s Ratings Services. Terms 3. The letter of credit must provide for the following matters: 1.  Effective date:  The date on which the letter of credit becomes effective must be specified.  That date must not be later than, i.  the date on which the first instalment of the special payments to which the letter of credit relates is due, if the letter of credit relates to special payments described in clause 5 (1.0.0.1) (f) of the Regulation, or ii.  the date a payment required by subsection 12 (2) of the Regulation is due, if the letter of credit relates to such a payment. 2.  Expiry date:  The date on which the letter of credit expires must be specified, and it cannot be later than the first anniversary of the date on which the letter of credit takes effect. 3.  Demand for payment:  When the trustee for the pension fund demands payment under the letter of credit, the issuer is required to promptly pay the face amount of the letter of credit without further inquiry. 4.  Assignment:  The letter of credit cannot be assigned except by the issuer to another issuer. 5.  Effect of assignment:  If the issuer assigns the letter of credit without the consent of the employer, the issuer who assigned it remains obligated to pay, on demand, an amount demanded under the letter of credit by the trustee of the pension fund. 6.  Amendment:  The letter of credit cannot be amended except as follows: i.  To reflect a change in the name of the pension plan, the name of the employer or the name of the administrator. ii.  To reflect a change in the trustee of the pension fund. iii.  To reflect the assignment of the letter of credit to another issuer. iv.  To decrease the amount of the letter of credit in the circumstances permitted under this Regulation. v.  To increase the amount of the letter of credit when it is renewed. 7.  Notice of amendment:  The issuer is required to give written notice of any amendment to the employer within five days after the amendment is made. 8.  Effect of change in issuer’s status:  If the issuer of the letter of credit ceases to satisfy any of the requirements set out in section 2 of this Schedule while the letter of credit is in effect, the issuer remains obligated to pay, on demand, an amount demanded under the letter of credit by the trustee of the pension fund. 9.  Effect of employer’s insolvency, etc.:  It must provide that the insolvency, liquidation or bankruptcy of the employer has no effect on the rights or obligations of the issuer or the rights or obligations of the trustee of the pension fund. 10.  Notice of non-renewal:  It must provide that, if the issuer does not intend to renew the letter of credit, the issuer is required to notify the trustee and the employer at least 60 days before the letter of credit expires. Trust agreement 4. (1) The trust agreement to which a letter of credit is subject must provide for the following matters: 1.  The trustee of the pension fund holds the letter of credit in trust for the pension fund. 2.  The trustee is required to demand payment of the amount of the letter of credit if the administrator notifies the trustee that the letter of credit does not satisfy the requirements of the Act and regulations or the requirements of the Income Tax Act
(Canada). 3.  The trustee is required to demand payment of the amount of the letter of credit if the administrator or the employer notifies the trustee that the employer intends to wind up the pension plan under subsection 68 (1) of the Act or that the Chief Executive Officer has issued an order under subsection 69 (1) of the Act requiring the wind up of the pension plan. 4.  The trustee is required to demand payment of the amount of the letter of credit if the administrator or the employer notifies the trustee that the employer is subject to bankruptcy proceedings under the Bankruptcy and Insolvency Act (Canada) or if an application or petition has been filed under the Winding-up and Restructuring Act (Canada) by or against the employer. 5.  If the trustee receives notice from a person or entity other than the administrator or the employer that a circumstance described in paragraph 3 or 4 exists, the trustee is required to notify the administrator, the employer and the Chief Executive Officer.  Thirty-one days after giving this notice, the trustee is required to demand payment of the amount of the letter of credit unless the administrator has notified the trustee that the circumstance does not exist. 6.  Fourteen days before the letter of credit expires, the trustee is required to demand payment of the amount of the letter of credit unless one or more of the following events has occurred: i.  The employer has paid into the pension fund an amount equal to the amount of the letter of credit. ii.  The letter of credit has been renewed, in an amount at least equal to the original letter of credit, and the trustee has received notice of the renewal. iii.  The letter of credit is being replaced, in an amount at least equal to the original letter of credit, and the trustee has received the replacement letter of credit. iv.  The administrator has notified the trustee that the amount of the letter of credit is reduced and the trustee has received the following documents: A.  Either a replacement letter of credit in the reduced amount or notice of the renewal of the current letter of credit in the reduced amount. B.  Either notice that the employer has paid into the pension fund the amount by which the letter of credit is reduced or notice that no such payment is required because the requirement described in subsection (2) or (2.1) is satisfied. 7.  If the trustee demands payment of the amount of the letter of credit, the trustee is required to promptly notify the administrator, the employer and the Chief Executive Officer. 8.  If the issuer does not pay the amount of the letter of credit after the trustee demands payment, the trustee is required to promptly notify the administrator, the employer and the Chief Executive Officer. 9.  The administrator is required to give a copy of the trust agreement to the employer and the Chief Executive Officer within 10 days after it is entered into or is amended, as the case may be. (2) If the amount of the letter of credit is reduced, the employer is not required to make the payment referred to in sub-subparagraph 6 iv B of subsection (1) into the pension fund if, as of the date of the most recent report filed or submitted under section 3, 4, 13 or 14 of the Regulation, “A” minus “B” is less than or equal to “C” where, “A”  is the sum of the solvency liabilities and the solvency liability adjustment, “B”  is the sum of the solvency assets and the amount, which may be positive or negative, by which the value of the solvency assets is adjusted as a result of applying an averaging method that stabilizes short-term fluctuations in the market value of the plan assets, calculated over a period of not more than five years, and “C”  is the present value of the total amount of all letters of credit held in trust for the pension fund, after the reduction in the amount of the letter of credit. (2.1) If the amount of the letter of credit is reduced, the employer is not required to make the payment referred to in sub-subparagraph 6 iv B of subsection (1) into the pension fund if, as of the date of the most recent report with a valuation date on or after December 31, 2017 that is filed or submitted on or after May 1, 2018 under section 3, 4, 13 or 14, “A” minus “B” is less than or equal to “C” where, “A”  is 85 per cent of the sum of the solvency liabilities and the solvency liability adjustment, “B”  is the sum of the solvency assets and the amount, which may be positive or negative, by which the value of the solvency assets is adjusted as a result of applying an averaging method that stabilizes short-term fluctuations in the market value of the plan assets, calculated over a period of not more than five years, and “C”  is the present value of the total amount of all letters of credit held in trust for the pension fund, after the reduction in the amount of the letter of credit. (3) The present value of the total amount of all letters of credit held in trust for the pension fund must be determined, for the purposes of the definition of “C” in subsection (2) or (2.1), using the same interest rates as those used to determine the amount of the solvency deficiency or reduced solvency deficiency set out in the report referred to in the applicable subsection. O. Reg. 364/12, s. 6; O. Reg. 119/14, s. 3; O. Reg. 250/18, s. 39; O. Reg. 105/19, s. 24; O. Reg. 149/19, s. 1; O. Reg. 126/22, s. 1. FormS 1-3 Revoked:  O. Reg. 144/00, s. 33. Form 4 Revoked:  O. Reg. 386/04, s. 11.  Français