Subsection 147.3(4) - Transfer — defined benefit to money purchase, RRSP or RRIF
Canada v. Yudelson, 2010 DTC 5040 [at 6674], 2010 FCA 44
The taxpayer's defined benefit registered pension plan had a value of $680,900. Under the terms of the plan, the taxpayer could have purchased an indexed annuity contract, but did not. Instead he used $571,770 to purchase fixed annuity benefits of $52,934 per year and, after receiving the first such payment, transferred the remaining amount of $108,886 into his RRSP to fund indexation payments.
The transfer of the remaining amount exceeded the prescribed amount. While the Plan included savings to fund future benefits tied to the cost of living, at the time of this transfer no benefits were payable beyond the base amounts. Accordingly, the "prescribed amount" - the value of the foregone life retirement benefits - for the year of the transfer was nil, so that the amount of the $108,886 transfer was includible in his income.
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1 May 1995 Internal T.I. 7-950290 -
Where a member's pension benefits are increased pursuant to the "50/50" rule (which provides that where the member's contributions, plus earnings thereon, exceed 50% of the pension benefit credit relating to the same period, the member's pension benefits shall be increased), such adjustments represents a "benefit" which can be transferred under s. 147.3(4), rather than qualifying for treatment as a return of contributions under s. 147.3(6).
2 November 1993 Memorandum 942791 (C.T.O. "Direct Transfer from RPP to RRIF")
General explanation of "single amount" and of Regulation 8517.
Subsection 147.3(5) - Transfer to RPP, RRSP or RRIF for spouse on marriage breakdown
11 April 1991 T.I. (Tax Window, No. 2, p. 27, ¶1195)
S.147.3(5) permits the transfer of benefits under a registered pension plan of the member spouse to a locked-in RRSP of the non-member spouse provided that the transfer is made directly and the amount is transferred pursuant to a court order or written agreement relating to a division of property and marriage breakdown.