30 January 1990 Administrative Letter 59426 F - Transfer of Retiring Allowances

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

January 30, 1990

Dear Sirs:

Re:  Paragraph 60(j.1) of the Income Tax Act (the "Act")

This is in reply to your letter of January 19, 1990 wherein you requested a technical interpretation on the applicability of paragraph 60(j.1) of the Income Tax Act (the "Act") in the following situation:

24(1)

It would appear that the above-described situation represents a proposed factual situation. As noted in Information Circular 70-6R, we do not give opinions in respect of proposed transactions other than as a reply to an advance income tax ruling request.  Nevertheless we will offer the following general comments.

It is our opinion that an employee who bought back prior service years for his pension plan is not entitled to the additional $1,500 since the Department takes the position that "employer contributions" have vested in respect of each year bought back.

In the above case, 24(1)

We trust the above comments will be of assistance to you.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate