Group Restricted Life Income Fund Manufacturers Life

Transcription

1 Locking-in Addendum issued in accordance with the Pension Benefits Standards Act, 1985 (federal) Group Restricted Life Income Fund Manufacturers Life This Locking-in Addendum modifies the Group Retirement Income Fund Manufacturers Life in order that it qualifies as a Restricted Life Income Fund under the Pension Benefits Standards Act, The base contract of the Group Retirement Income Fund Manufacturers Life together with this Addendum constitute the Restricted Group Life Income Fund Manufacturers Life (the Plan ). Accordingly, the sections stipulated below either replace the corresponding sections set out in the base contract or are added as new sections under the base contract. In the event of any conflict between the provisions stipulated in this Addendum and any provisions of the base contract, the provisions of the Addendum will apply to the locked-in assets of the Participant. This Addendum applies only to Participants in respect of whom locked-in benefits have been transferred to the Group Retirement Income Fund Manufacturers Life, on or after May 8, 2008, which are to be administered in accordance with the Pension Benefits Standards Act, 1985 and its Regulation pertaining to Restricted Life Income Funds. Section 2 - Definitions 2.4 Applicable Legislation means the Pension Benefits Standards Act, 1985 and its regulations thereunder and/or the Act and its regulations issued thereunder Spouse means a person who is married to the Participant or is party to a void marriage with the Participant. For the purposes of the Plan, Spouse includes a Common-law Partner who, in accordance with the Pension Benefits Standards Act, 1985, is an individual who has cohabited with the Participant in a conjugal relationship for a period of at least one year prior to the relevant time. The determination of the spousal status is established as of the day preceding the Participant s death, or in the case of a life annuity under the policy in accordance with section 5.2, as of the Annuity Commencement Date. However, a Spouse shall not include any person who is not recognized as a spouse or as a common-law partner for the purposes of any provisions of the Income Tax Act (Canada) and its regulations respecting RRIFs Regulation means the regulations of the Pension Benefits Standards Act, Manufacturers Life refers to The Manufacturers Life Insurance Company, 1245 Sherbrooke West, Montréal, Québec H3G 1G Restricted Life Income Fund (RLIF) means a Registered Retirement Income Fund, as defined in subsection 146.3(1) of the Income Tax Act (Canada) and its regulations, that meets the requirements set out in section 20.3 of the Regulation Restricted Locked-in Savings Plan (RLSP) means a Registered Retirement Savings Plan, as defined in subsection 146(1) of the Income Tax Act (Canada) and its regulations, that meets the requirements set out in section 20.2 of the Regulation Section Eligibility To join the Plan, a participant application must be completed and submitted to Manufacturers Life. Such application appoints the Policyholder as agent of the Participant for purposes of contracting for benefits under the Plan and instructs Manufacturers Life to register the Participant s Account as a Restricted Life Income Fund under the Pension Benefits Standards Act, 1985 and as a Retirement Income Fund under the Income Tax Act (Canada) and its regulations and any other provincial taxation act, if applicable.

2 Section Premiums remitted under the plan In accordance with Applicable Legislation, premiums remitted to the Plan may only be made by the Participant by transferring his locked-in assets from another registered plan identified below: (a) a locked-in RRSP; (b) a restricted locked in savings plan (RLSP); (c) a life income fund (LIF); (d) an existing restricted life income fund (RLIF); (e) a registered pension plan (RPP); or (f) a pooled registered pension plan (PRPP) Subject to Applicable Legislation, the Participant may also transfer locked-in funds that he is entitled to from his former Spouse s registered plan(s) under a decree, order, or judgment of a competent tribunal or under a written separation agreement, relating to a division of property between the Participant and the Participant s Spouse or former Spouse in settlement of rights arising out of or on the breakdown of their union, or upon the death of his or her Spouse if the Participant is entitled, in accordance with the Pension Benefits Standards Act, 1985, to the death benefit Manufacturers Life will administer the premiums as if the assets were originally administered on a basis that does not differentiate on the basis of sex, unless advised otherwise at the time of transfer by the institution transferring the assets. Section Retirement income payments The Participant may elect when joining the Plan to use the prescribed factor corresponding to his age or the age of his Spouse to calculate the minimum required annual payments under each Account. The amount of income paid out of the Plan during a fiscal year must not be less than the minimum amount prescribed for RRIFs under the Income Tax Act (Canada) and its regulations. Retirement income payments will however be established on the prescribed factor for a non-qualifying RRIF as provided under the Income Tax Act (Canada) and its regulations. Nevertheless, the aggregate of all payments made out of the Plan for any calendar year prior to the calendar year in which the Participant reaches 90 years of age must not exceed the maximum income allowed under the Regulation, as determined in accordance with the following formula: C/F where C is the balance in the RLIF (i) at the beginning of the calendar year, or (ii) if the amount determined in (i) above is zero, at the date when the initial amount was transferred into the RLIF, and F is the value, as at the beginning of the calendar year, of a pension benefit of which the annual payment is $1, payable on January 1 of each year between the beginning of that calendar year and December 31 of the year in which the Participant reaches 90 years of age, established using an interest rate that, (i) for the first 15 years after January 1 of the year in which the RLIF is valued, is less than or equal to the monthly average yield on Government of Canada marketable bonds of maturity over 10 years, as published by the Bank of Canada, for the second month before the beginning of the calendar year, and (ii) for any subsequent year is not more than 6%. For the calendar year in which the Participant reaches 90 years of age and for all subsequent calendar years, the amount of income paid out of the RLIF will not exceed the value of the Account immediately before the time of the payment (a) Manufacturers Life will make regular scheduled payments, in the amounts and on the dates selected by the Participant at the time of his application. The payments must begin not later than during the second fiscal year of the Plan; the fiscal year of the Plan must end on December 31st of each year and will not exceed 12 months. (b) If at the date a payment has to be made, the unit values of the Funds offered by Manufacturers Life under the Plan, on that particular date, are not yet available, payment can be delayed to the date the values of the Funds are known to Manufacturers Life.

3 In the calendar year in which the Participant s Account is established, the RLIF payment determined in section above will be multiplied by the number of months remaining in that year and then divided by 12, with any part of an incomplete month counting as one month If at the time the Participant s Account was established, part of the RLIF was composed of funds that had been held in another RLIF of the Participant earlier in the year, the RLIF payment determined in section above is deemed to be zero in respect of that part of the RLIF for that calendar year Any assets transferred directly or indirectly from another RLIF or a LIF will be subject to the maximum amount that may be paid out of the Plan, subject to and in accordance with Applicable Legislation. Section Transfers to other plans, commencement of annuity payments and purchase of another annuity Upon receipt of a written request from the Participant for a transfer to another prescribed plan, for the commencement of annuity payments under the policy, as provided for under section 5.2, or for the purchase of another annuity, in accordance with Applicable Legislation, and in the manner required by Manufacturers Life, the latter will: (a) transfer all or part of the Participant s Account to another RLIF of the Participant together with the information necessary for the continuance of the fund; or (b) transfer all or part of the Participant s Account to a RLSP (before December 31st in the year in which the Participant reaches the age limit prescribed by the Income Tax Act (Canada)); or (c) arrange for the commencement of annuity payments under the policy; or (d) transfer all or part of the Participant s Account to another insurance company for the purchase of another annuity in accordance with paragraph 60(l) of the Income Tax Act (Canada). Manufacturers Life will proceed with the transaction within 30 days following receipt of the Participant s written request and required information except when a longer period is provided for under the Applicable Legislation Section Death settlement If the Participant dies before his Plan has been transferred to another plan, or the commencement of annuity payments, or the purchase of another annuity, the payments will cease and a lump sum payment equal to the value of the Participant s Account will be paid to his beneficiary or, if there is none, to his estate. However, in accordance with the Pension Benefits Standards Act, 1985, the Participant s Spouse will be entitled to death benefit over any other beneficiary designated by the Participant for the purpose of the Plan The Participant s Spouse may elect to use the death benefit in the following manner: (a) to transfer the death benefit to another restricted life income fund or to a life income fund; or (b) to transfer the death benefit to a locked-in registered retirement savings plan or a restricted locked-in savings plan; or (c) to purchase an immediate or deferred life annuity. Section 5.2 Commencement of annuity payments When the Participant instructs Manufacturers Life in writing to commence annuity payments in accordance with section 5.2, Manufacturers Life will do so according to the terms of the Plan and Applicable Legislation. The amount of a Participant s annuity is determined using the value of the Participant s Account at the Annuity Commencement Date. After the Annuity Commencement Date, the liability of Manufacturers Life and Manulife Assurance Company of Canada to the Participant is limited to the payment of the annuity as established and any benefits arising directly from it. Manufacturers Life will commence the payment of the annuity after ensuring that the Participant has received the minimum income payment, in accordance with paragraph 146.3(2)(e) of the Income Tax Act (Canada).

4 Section Assignment and loans The Participant cannot assign, charge, anticipate or give as security for a loan money payable under the Plan except as permitted under the Pension Benefits Standards Act, Any transaction purporting to the contrary is void. Nothing in this policy must be read to prohibit the Policyholder, Manufacturers Life or Manulife Canada to assign the policy to a successor company. Section Termination of the policy The Participant may elect to transfer his termination benefit in accordance with the rules of section 3.7, Transfers to Other Plans, Commencement of Annuity Payments and Purchase of Another Annuity The termination benefit of a Participant who fails to make an election and to submit the required signed documents in a timely manner will be handled as follows: if the membership of the Participant terminates on a date before the first day of the year in which he reaches the age limit prescribed by the Income Tax Act (Canada), the termination benefit will be transferred to a RLSP made available on a group basis by Manufacturers Life and Manulife Canada and the Participant will receive the applicable locking-in Appendix detailing the administration of the funds transferred as locked-in; or if the membership of the Participant terminates on or after the first day of the year in which he reaches the age limit prescribed by the Income Tax Act (Canada), the Participant will continue to receive such benefits under an individual RLIF provided by Manufacturers Life and Manulife Canada, based on the same payment instructions (such as, for example, the frequency, the amount of payment, the tax withholdings) as under the Account. Section Commutation Where a physician certifies that owing to mental or physical disability, the life expectancy of the Participant is likely to be shortened considerably, the value of the Participant s Account may be paid to the Participant as a taxable lump sum payment A lump sum withdrawal equal to the full value of the Participant s Account may be made where the Participant applies to Manufacturers Life with written confirmation from Canada Revenue Agency that the Participant has become a non-resident for the purposes of the Income Tax Act (Canada) and its regulations. Application must be made at least 2 calendar years after the Participant s departure from Canada and, if the Participant has a Spouse, the application must be accompanied by the Spouse s waiver of entitlement to the Participant s Account A lump sum withdrawal or transfer to the Participant s RRIF or RRSP equal to the full value of the Participant s Account may be made on application by the Participant to Manufacturers Life, if at the time the Participant signs the application: (a) the Participant is at least 55 years of age in the calendar year in which the lump sum is paid; and (b) the value of all assets in all federally regulated Locked-in RRSPs, LIFs, RLSPs and RLIFs of the Participant is less than or equal to 50% of the Year s Maximum Pensionable Earnings for that calendar year. The lump sum withdrawal may be transferred to another plan in accordance with the terms of the Plan. The Participant s application for the lump sum withdrawal must be made to Manufacturers Life by submitting the duly completed prescribed forms A Participant who meets one or both of the prescribed conditions for financial hardship is entitled to make a lump sum withdrawal of an amount up to 50% of the Year s Maximum Pensionable Earnings from any combination of the Participant s federally regulated LIFs, Locked-in RRSPs, RLIFs, or RLSPs within a given calendar year.

5 The lump sum withdrawal may be transferred to another plan in accordance with the terms of the Plan The lump sum withdrawal is subject to the following conditions: If the Participant has expenditures on medical or disability-related treatment or adaptive technology for the calendar year: (a) the Participant has not made a lump sum withdrawal from any of the Participant s LIFs, RLSPs or RLIFs in the calendar year other than within the last 30 days before this certification; and (b) (i) the Participant certifies that expenditures on medical or disability-related treatment or adaptive technology for the calendar year are expected to be in excess of 20% of the Participant s total expected income for that calendar year determined in accordance with the Income Tax Act (Canada) and its regulations, excluding any lump sum withdrawal in the calendar year from the Participant s federally regulated locked-in RRSPs, LIFs, RLSPs and RLIFs; and (ii) a physician certifies that such medical or disability-related treatment or adaptive technology is required; and (c) the Participant submits to Manufacturers Life the duly completed prescribed forms. If the Participant has a low income: (a) the Participant has not made a lump sum withdrawal from any of the Participant s LIFs, RLSPs or RLIFs in the calendar year other than within the last 30 days before this certification; and (b) the Participant certifies that his expected income for the calendar year, determined in accordance with the Income Tax Act (Canada) and its regulations, excluding any lump sum withdrawal in the calendar year from the Participant s federally regulated locked-in RRSPs, RLSPs and RLIFs, is less than three quarters of the Year s Maximum Pensionable Earnings as defined in the Pension Benefits Standards Act, 1985; and The lump sum withdrawal may be transferred to another plan in accordance with the terms of the Plan If the RLIF is established in the calendar year in which the Participant reaches 55 years of age or in any subsequent calendar year, the Participant is entitled to make application to unlock and transfer 50% of the value of the assets in the Account to either an RRSP or a RRIF, as long as the transfer takes place within 60 days after the establishment of the RLIF. Following the transfer, the RLIF will be subject to the same limits applicable to maximum and minimum annual withdrawals and to extraordinary withdrawals as a LIF. The Participant s application to Manufacturers Life for the one-time 50% transfer must be accompanied by the Attestation Regarding Spouse/ Common law Partner. Section Statements At the beginning of each calendar year, the Participant will receive a statement indicating the value of his Account under the Plan, the amount of the premium(s), the retirement income payment(s) paid and the fees charged during the previous calendar year. The statement will also indicate the minimum and the maximum amount that must be withdrawn from the Plan during the current calendar year Following the death of the Participant, the person entitled to the death benefit will receive a statement indicating the value of the Participant s Account under the Plan at the end of the year preceding the death of the Participant, the amount of the premium(s), the retirement income payment(s) paid and the fees charged during the current calendar year, along with the death benefit payable Following the transfer of the Participant s Account, the commencement of annuity payments or the purchase of another life annuity, the Participant will receive a statement indicating the value of his assets in the Plan at the end of the year preceding the transfer or conversion, the amount of the premium(s), the retirement income payment(s) paid and the fees charged during the current calendar year. (c) the Participant submits to Manufacturers Life the duly completed prescribed forms.

6 Section Amendment to the plan Manufacturers Life will submit any amendment thereto for registration to the applicable authorities. Moreover, unless the amendment is required by law, Manufacturers Life will not make any amendment that would have the effect of reducing benefits under the Plan unless the Participant has received a prior notice of at least 90 days indicating the nature of the amendment. The notice will also inform the Participant of his right to transfer his assets from the Plan at any time. Manulife, the Block Design, the Four Cube Design, and Strong Reliable Trustworthy Forward-thinking are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under licence. GE11729B 08/16