This Addendum sets out further provisions that apply to LIRAs
which are subject to the Pension Benefits Act of the province of
Nova Scotia (the “Act”).
This Addendum forms a part of the main LIRA Agreement to
which it is attached. In the case of any inconsistency between the
main LIRA Agreement and this Addendum, this Addendum shall
prevail in all cases.
1. Definitions
All of the definitions regarding life income funds set out in the
applicable pension legislation are incorporated in this LIRA
Agreement.
2. Schedule 3 of Pension Benefits Regulations (Nova Scotia)
In accordance with the requirements of the Pensions Benefits
Regulations (Nova Scotia) (the "Regulations"), Schedule 3 is
included below as part of this LIRA Agreement.
3. Annual Information
We will provide the information described in Section 4 of Schedule 3
(set out below), to the persons indicated in that Section.
4. Reliance on Information
We are entitled to rely upon the information provided by you in
an application to purchase a LIRA and in an application to
withdraw or transfer money from your LIRA, as prescribed by the
Regulations.
5. Withdrawals and Transfers
When applying to transfer excess amounts or to withdraw funds
due non-residency, shortened life expectancy, or a small balance,
the application that meets the requirements of the Act and the
Regulations constitutes authorization to us to make the payment
or transfer from the LIRA in accordance with the Act and the
Regulations. We are required to make the payment to which you
are entitled no later than 30 days after we receive the completed
application and accompanying documents.
Additionally, for a small balance withdrawal, the value of all of
the assets in all LIRAs and LIFs owned by you on the date you sign
an application to withdraw or transfer funds at age 65 must be
determined using the most recent statement about each LIRA or
LIF given to you dated no earlier than 1 year before you sign the
application.
6. Amendments
From time to time we may amend this LIRA Agreement upon 90
days written notice.
We will not amend this LIRA Agreement if the amendment would
result in a reduction of your rights under it unless: (a) we are
required by law to make the amendment, or (b) we allow you to
transfer all or part of the assets of the LIRA under the terms of the
LIRA as they exist before the amendment is made. In either case
we will give you notice in writing of the amendment and the
nature of the amendment and allow you at least 90 days after the
notice is given to transfer all or part of the assets in your LIRA.
7. Address of The Bank of Nova Scotia Trust Company
(Scotiatrust
®
)
The mailing address of Scotiatrust is as follows:
Scotiatrust
44 King Street West
Toronto, Ontario M5H 1H1
Addendum
for Nova
Scotia LIRAs
Addendum
Scotia Locked-in Retirement Account (LIRA)
Page 1 of 2
8983518 (11/15)
Schedule 3: Nova Scotia LIRA Addendum
(Pension Benefits Regulations)
Note: This document is Schedule 3 to the Pension Benefits
Regulations (Nova Scotia). It forms part of the regulations
and must be read, construed and interpreted in conjunction
with the Pension Benefits Act and its regulations.
Definitions for this Schedule
1. In this Schedule,
“Act” means the Pension Benefits Act;
“domestic contract”, as defined in Section 2 of the regulations,
means a written agreement referred to in, and for the purpose of
Section 74 of the Act that provides for a division between spouses
of any pension benefit, deferred pension or pension and includes a
marriage contract as defined in the Matrimonial Property Act;
“federal Income Tax Act”, as defined in Section 2 of the
regulations, means the Income Tax Act (Canada) and, unless
specified otherwise, includes the regulations made under that Act;
“owner ” means any of the following persons, as set out in
subsection 205(2) of the regulations, who has purchased a LIRA:
(i) a former member who is entitled to make a transfer under
clause 61(1)(b) of the Act,
(ii) a spouse of a person who was a member, and who is entitled
to make a transfer under clause 61(1)(b) of the Act,
(iii) a person who has previously transferred an amount under
clause 61(1)(b) of the Act into a LIRA or LIF,
(iv) a person who has previously transferred an amount into a LIRA
as a result of a division of any pension benefit, deferred
pension or pension under Section 74 of the Act,
(v) a spouse who is entitled to transfer a lump sum as a result of a
division of any pension benefit, deferred pension or pension
under Section 74 of the Act;
“regulations” means the Pension Benefits Regulations made under
the Act;
“spouse”, as defined in the Act, means either of 2 persons who
(i) are married to each other,
(ii) are married to each other by a marriage that is voidable and
has not been annulled by a declaration of nullity,
(iii) have gone through a form of marriage with each other, in
good faith, that is void and are cohabiting or, if they have
ceased to cohabit, have cohabited within the 12-month period
immediately preceding the date of entitlement,
(iv) are domestic partners within the meaning of Section 52 of the
Vital Statistics Act, or
(v) not being married to each other, are cohabiting in a conjugal
relationship with each other, and have done so continuously
for at least
(A) 3 years, if either of them is married, or
(B) 1 year, if neither of them is married;
“Superintendent” means the Superintendent of Pensions, as
defined in the Act.
Note Re Requirements of the Pension Benefits Act and Regulations
Prohibitions on transactions from Section 91 of Act
Under Section 91 of the Act, money held in a LIRA must not be
commuted or surrendered in whole or in part except as permitted by
this Schedule and the regulations including, without limiting the
generality of the foregoing, the following Sections of the regulations:
®
Registered trademark of The Bank of Nova Scotia, used under licence. ™Trademark of The Bank of Nova Scotia, used under licence. Scotia Wealth Management™ consists of a range of financial services provided by The
Bank of Nova Scotia (Scotiabank
®
); The Bank of Nova Scotia Trust Company (Scotiatrust
®
); Private Investment Counsel, a service of 1832 Asset Management L.P.; 1832 Asset Management U.S. Inc.; Scotia Wealth Insurance
Services Inc.; and ScotiaMcLeod
®
, a division of Scotia Capital Inc. Estate and trust services are provided by The Bank of Nova Scotia Trust Company. Wealth advisory and brokerage services are provided by ScotiaMcLeod, a
division of Scotia Capital Inc. Scotia Capital Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.
• Sections 211 through 230, respecting withdrawal in
circumstances of financial hardship
• Section 231, respecting withdrawal in circumstances of
considerably shortened life expectancy
• Section 232, respecting withdrawal in circumstances of non-
residency
• Section 233, respecting withdrawal of small amounts at age 65
• Section 198, respecting the transfer of an excess amount, as
defined in that Section.
Pursuant to subsection 91(2) of the Act, any transaction that
contravenes Section 91 of the Act is void.
Values of assets in LIRA subject to division
The value of the assets in a LIRA is subject to division in accordance
with all of the following:
• an order of the Supreme Court of Nova Scotia that provides for
the division of any pension benefits under Section 74 of the Act
• a domestic contract that provides for the division of any
pension benefit, deferred pension or pension under Section 74
of the Act
• the regulations
Money held in LIRA
The following requirements are set out in the Pension Benefits Act
and are applicable to LIRAs governed by this Schedule:
• Money held in a LIRA must not be assigned, charged, or given
as security except as permitted by subsection 88(3) of the Act
or Section 90 of the Act, and any transaction purporting to
assign, charge, anticipate or give the money in the LIF as
security is void.
• Money held in a LIRA is exempt from execution, seizure or
attachment except for the purpose of enforcing a maintenance
order as permitted by Section 90 of the Act.
Transferring assets from LIRAs
2 (1) An owner of a LIRA may transfer all or part of the assets in
the LIRA to any of the following:
(a) the pension fund of a pension plan registered under the
pension benefits legislation in any Canadian jurisdiction
or to the pension fund of a pension plan provided by a
government in Canada;
(b) a LIRA held by another financial institution;
(c) a LIF;
(d) a life annuity.
(2) The date of a transfer under subsection (1) must not be
later than 30 days after the owner requests it, unless any of the
following apply:
(a) the financial institution providing the LIRA does not
have all the information necessary to complete the
transaction, in which case the 30-day period begins to
run from the date the financial institution has all the
necessary information;
(b) the transfer is in respect of assets held as securities
whose term of investment extends beyond the 30-day
period.
(3) If assets in a LIRA consist of identifiable and transferable
securities, the financial institution providing the LIRA may
transfer the securities with the consent of the owner of the
LIRA.
(4) A financial institution providing a LIRA must advise the
financial institution to which the assets of the LIRA are
transferred
(a) that the assets were held in a LIRA in the current year;
and
(b) whether the assets were determined in a manner that
differentiated on the basis of sex.
Information to be provided by financial institution on transfers of
assets of LIRAs
3 If the assets in a LIRA are transferred, the financial institution
providing the LIRA must give the owner the information
required by Section 4 of this Schedule, determined as of the
date of the transfer.
Information to be provided annually by financial institution
4 At the beginning of each fiscal year of a LIRA, a financial
institution providing the LIRA must provide all of the following
information to the owner about their LIRA as of the end of the
previous fiscal year:
(a) with respect to the previous fiscal year,
(i) the sums deposited,
(ii) any accumulated investment earnings, including any
unrealized capital gains or losses,
(iii) the payments made out of the LIRA,
(iv) any withdrawals from the LIRA,
(v) the fees charged against the LIRA;
(b) the value of the assets in the LIRA at the beginning of the
fiscal year of the LIRA.
Death benefits
5 (1) If the owner of a LIRA dies, the following are entitled to
receive a benefit equal to the value of the assets in the
LIRA, subject to subsections (4) and (5):
(a) the owner’s spouse;
(b) if there is no spouse or if the spouse is disentitled under
subsection (4) or (5), the owner’s named beneficiary;
(c) if there is no named beneficiary, the personal
representative of the owner’s estate.
(2) For the purposes of subsection (1), a determination as to
whether an owner of a LIRA has a spouse must be made
as of the date the owner dies.
(3) For the purposes of subsection (1), the value of the assets
in a LIRA includes all accumulated investment earnings,
including any unrealized capital gains and losses, of the
LIRA from the date of death until the date of payment.
(4) A spouse is not entitled to receive the value of the assets in
a LIRA under clause (1)(a) if the owner of the LIRA was not
a member or former member of a pension plan from
which the assets were transferred, directly or indirectly, to
purchase the LIRA.
(5) A spouse who is living separate and apart from the owner
of a LIRA without a reasonable prospect of resuming
cohabitation on the date the owner dies is not entitled to
receive the value of the assets in the LIRA under clause
(1)(a) if any of the following conditions apply:
(a) the spouse delivered a written waiver to the financial
institution in accordance with Section 6 of this
Schedule;
(b) the spouse is not entitled to receive any amount in
respect of the assets in the LIRA in accordance with the
terms of a domestic contract that provides for the
division of any pension benefit, deferred pension or
pension under Section 74 of the Act;
(c) the spouse is not entitled to receive any amount in
respect of the assets in the LIRA in accordance with a
court order respecting a division of a pension benefit,
deferred pension or pension under Section 74 of the
Act.
(6) The benefit described in subsection (1) may be transferred
to a registered retirement savings arrangement in
accordance with the federal Income Tax Act.
Waiver of entitlement to death benefits by spouse
6 (1) A spouse of an owner of a LIRA may waive their
entitlement to receive a benefit described in Section 5 of
this Schedule from the LIRA, by delivering, any time before
the death of the owner, a written waiver in an approved
form to the financial institution providing the LIRA.
(2) A spouse who delivers a waiver under subsection (1) may
cancel it by delivering a written and signed notice of
cancellation to the financial institution before the date the
owner of the LIRA dies. Information to be provided by
financial institution on death of owner
7 If the owner of LIRA dies, the financial institution providing the
LIRA must give the information required by Section 4 of this
Schedule, determined as of the date of the owner’s death, to
any person who is entitled to receive the assets in the LIRA
under subsection 5(1) of this Schedule.
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