30 November 1997 Internal T.I. 972680A - SUPPLEMENTAL RETIREMENT ARRANGEMENT; RCA, SDA

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 ‚mis, peut ne pas repr‚senter la position actuelle du ministŠre.

Principal Issues: Supplemental Retirement Arrangement - Change of Facts

Position: No change to the rulings provided

Reasons: Changes do not cause the arrangement to be a RCA or SDA

972680
XXXXXXXXXX supplemental to
971222

Attention: XXXXXXXXXX

XXXXXXXXXX, 1998

Dear Sirs:

Re: Advance Income Tax Ruling
XXXXXXXXXX

This is in reply to your letters dated XXXXXXXXXX, and numerous telephone conversations wherein you requested some amendments with respect to the advance income tax ruling issued in the above-captioned matter on XXXXXXXXXX, 1997 our reference 3-971222.

The XXXXXXXXXX, 1997 ruling is amended as follows:

1. Page 2, paragraph 3

The preamble is amended as follows:

a) On the ninth line delete "XXXXXXXXXX" and replace it with "the applicable effective date in 1997"; and

b) On the tenth line delete "XXXXXXXXXX" and replace it with "the relevant effective date in 1997 (with the applicable effective date in 1997 varying by staff group, that being for XXXXXXXXXX)."

2. Page 3, paragraph 4.

Delete paragraph 4 of the XXXXXXXXXX, 1997 ruling and replace it with:

"XXXXXXXXXX

to provide a supplemental retirement arrangement (SRA)

XXXXXXXXXX

The details of the proposed SRA are described in 5 below."

3. Page 4, subparagraph 5(a)

Delete the description of A in the XXXXXXXXXX, 1997 ruling and replace it with:

"is the annual pension benefit that would be payable on salary (XXXXXXXXXX), under the Plans but for the limits imposed under the Act, as described in paragraph 3(c) above;"

4. Page 4, subparagraph 5(a)

Delete the description of (i) in the description of C of the XXXXXXXXXX, 1997 ruling and replace it with:

"for the period from XXXXXXXXXX onward, the accumulated additional member required contributions that would have been made in each Plan Year had the maximum salary under the SRA (described in A above) in the year of calculation applied in that Plan Year, but for the limitations imposed under the Plans by the Act (as described in paragraph 3(d) above);"

5. Page 5, add paragraph 7

"As a result of the XXXXXXXXXX implementing the SRA, the following amendments will be made to the Plans:

As stated in subparagraph 3(b) above, the normal form of benefits payable under the Plans is

XXXXXXXXXX

As stated in subparagraph 3(d) above, members are required to make contributions to the Plans. The required contributions will now be equal to XXXXXXXXXX, subject to the maximum amount permitted under paragraph 8503(4)(a) of the Income Tax Regulations.

XXXXXXXXXX

As stated in subparagraph 3(e), a death benefit is provided in respect of members whose death occurs prior to the commencement of the receipt of pension benefits. The amended death benefit provision will be applicable in the event of a death of a member while in active service of XXXXXXXXXX, or after termination of continuous service but prior to commencement of pension benefits under the Plans. The death benefit to be provided will be the

XXXXXXXXXX

The Plans will maintain their status as registered pension plans after giving effect to these amendments."

Effect of the aforementioned amendments on the XXXXXXXXXX, 1997 ruling

We confirm that the changes to the facts and proposed transactions as described above will not affect the rulings provided in our letter of XXXXXXXXXX, 1997, and that those rulings will continue to be binding on Revenue Canada in the manner set forth therein after giving effect to the above amendments provided that the proposed transactions are completed within six months of the date of this letter.

Comments

This letter does not express or imply, and should not be construed as expressing or implying, that any ruling, opinion, confirmation or approval is being given in respect of the proposed amendments to the Plan. This approval can only be given by the Registered Plans Division of Revenue Canada.

Yours truly,

for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch

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