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.
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Dear Sir:
RE: Group Registered Retirement Savings Plans (RRSP) Vesting of Employer Contributions
This is in reply to your Facsimile transmission of October 12, 1993 in which you asked if employer contributions can be made to a group RRSP subject to a two year vesting clause.
In order for a retirement savings plan to be accepted for registration it must comply with certain conditions. One of these is that a plan must not provide for the payment of any benefit before maturity except as a refund of premiums, as defined in the Act, and as a payment to the annuitant. The only exception to this is that a plan may pay an amount to a taxpayer where the payment is to reduce the amount that would otherwise be subject to the tax on over contributions. As a consequence of these provisions, it is our opinion that employer contributions subject to a vesting clause, can not be made to a group RRSP.
We trust these comments are satisfactory to your needs.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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© Her Majesty the Queen in Right of Canada, 1993
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© Sa Majesté la Reine du Chef du Canada, 1993
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