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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Can an actuarial surplus in an RPP be transferred to a member's RRSP?
Position:
No
Reasons:
Subsection 147.3(4) specifically excludes actuarial surplus so actuarial surplus may only be transferred to a defined benefit pension plan under 147.3(3) or a money purchase pension plan under 147.3(8).
972107
XXXXXXXXXX M.P. Sarazin
August 19, 1997
Dear Madam:
Re: Transfer of Actuarial Surplus to RRSP
This is in reply to your letter dated July 24, 1997, wherein you requested confirmation that the payment of an actuarial surplus out of a pension plan is transferable to a registered retirement savings plan ("RRSP").
The Department's views with respect to transfers between registered plans are found in Interpretation Bulletin IT-528 titled "Transfers of Funds Between Registered Plans", a copy of which is enclosed. Paragraphs 14 to 19 of IT-528 deal specifically with transfers from a defined benefit plan including the member's share of any actuarial surplus. Generally, an actuarial surplus in a pension plan may only be transferred to another pension plan (either a defined benefit pension plan or a money purchase pension plan) and none of the actuarial surplus is allowed to be transferred to an RRSP.
We trust the above comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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