Proposed changes to tax regulations pursue greater flexibility in pension plan delivery

By Andrew Donelle
|CHRR, Guide to Pensions & Benefits|Last Updated: 03/15/2001

The federal Department of Finance is currently considering a series of additions and amendments to the Income Tax Act (ITA)

Regulations governing employer-sponsored registered pension plans. In keeping with recent federal and provincial legislative trends, many of the new rules, released in draft form earlier this year and likely to take effect in the next few months, aim to provide pension plan administrators with greater flexibility in designing how a plan’s members or their surviving spouses can receive their accrued pension benefits.

Other notable revisions would relax the restrictions on investments that can be made by multi-employer pension plans and change how granting credits for past service impacts RRSP contribution room.