Pooled Registered Pension Plans Regulations

Marginal note:Payment amount

• 37 (1) A member who has elected to receive variable payments may decide the amount that they are to receive as a variable payment for any calendar year.

• Marginal note:Parameters

  (2) The payment shall be not less than the minimum amount determined under subsection 8506(5) of the Income Tax Regulations and, for any calendar year before the year in which the member reaches 90 years of age, not more than the amount determined by the formula

  C/F

  where

  C

  is the balance in the member’s account

  • (a) at the beginning of the calendar year, or

  • (b) if the balance at the beginning of the calendar year is zero, on the day on which the election was made; and

  F

  is the value, at the beginning of the calendar year, of an annual $1 payment, payable on January 1 of each year between the beginning of that calendar year and December 31 of the year in which the member reaches 90 years of age, established using an interest rate that is

  • (a) for each of the first 15 years, not more than the monthly average yield on Government of Canada marketable bonds of maturity over 10 years, as published by the Bank of Canada, for the month of November before the beginning of each calendar year, and

  • (b) for any subsequent year, not more than 6%.

• Marginal note:Default amount

  (3) The minimum amount determined under subsection 8506(5) of the Income Tax Regulations is to be paid as a variable payment for a calendar year if

  • (a) a member has not notified the administrator of the amount to be paid as a variable payment for the calendar year within 90 days after the day on which the statement required under paragraph 57(1)(b) of the Act is received; or

  • (b) the amount determined by the formula set out in subsection (2) for that year is less than that minimum amount.

• Marginal note:Amount deemed to be zero

  (3.1) If, for the calendar year in which the variable payment is established, part of the account was composed of funds that had been held in a life income fund of the holder earlier in the calendar year in which the variable payment was established, the amount determined by the formula set out in subsection (2) is deemed to be zero in respect of that part of the account for that calendar year.

• Marginal note:Initial year

  (4) For the calendar year in which the variable payment is established, the amount to be paid is multiplied by the number of months remaining in that year and then divided by 12, with any part of an incomplete month counting as one month.