CRA Starts Consultation on RPP Annuity Contracts; Comments Due March 1

​Canada Revenue Agency's Registered Plans Directorate has started a consultation process for its draft newsletter, Registered Pension Plan (RPP) Annuity Contracts under Section 147.4 of the Income Tax Act. Section 147.4 of the Act applies when an individual acquires ownership of an annuity contract in satisfaction of their entitlement to benefits under an RPP. Often referred to as a buy-out annuity, it occurs when a plan administrator pays a premium to a licensed annuity provider to purchase an annuity contract on behalf of the member or their survivors. The member (or survivor) is both the annuitant and the owner of the contract.

Comments are due March 1, 2019 to rpd/