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Second Session, Thirty-Eighth Legislature

This version is based on the printed bill that was distributed in the Legislature after First Reading.
It is not the official version.   If accuracy is critical, you can obtain a copy of the printed bill from Statutory Publications.

Bill 212

THE PENSION FREEDOM ACT (PENSION BENEFITS ACT AMENDED)


Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. P32 amended

1           The Pension Benefits Act is amended by this Act.

2           Subsection 21(13.1) is replaced with the following:

Life income fund or other arrangement

21(13.1)     Notwithstanding subsections (1), (2) and (6), every member or spouse or common-law partner of a member of a pension plan who becomes entitled to a pension benefit under the plan may, in accordance with the regulations, replace that pension benefit with

(a) a registered retirement savings plan or registered retirement income fund, as defined in the Income Tax Act (Canada), that is not locked in; or

(b) a life income fund or other prescribed arrangement.

Withdrawals: life income fund or other arrangement

21(13.2)    A person who has replaced a pension benefit with a life income fund or other prescribed arrangement may at any time, in accordance with the regulations and upon application to the administrator of the fund or other arrangement, withdraw from the fund or arrangement all or any part of the amount standing to his or her credit.

Application of subsection (13.2)

21(13.3)    Subsection (13.2) applies notwithstanding subsections (1), (2) and (6) and any provision to the contrary in the agreement governing the life income fund or other prescribed arrangement, whether entered into before or after the coming into force of subsection (13.2).

Coming into force

3           This Act comes into force on the day it receives royal assent.

Explanatory Note

This Bill amends The Pension Benefits Act to enable a person to replace a pension benefit with a registered retirement savings plan or a registered retirement income fund that is not locked in.

The Bill further provides that a person who transfers his or her pension benefit to a life income fund or other prescribed arrangement may later withdraw money from that fund or arrangement.