Nova Scotia Business Owners Rejoice!!!

Effective April 1, 2020, the Pension Benefits Regulations have been amended for connected persons (typically someone who owns 10% or more of the shares of their own company, or people related by blood or marriage) to exempt Personal Pension Plans ("PPP") from most of the strict requirements of the pension statute!!!!

Under these new conditions why would anyone stay in an #RRSP when they can drastically enhance their tax deductions with a PPP?

Call us at 1-844-484-3777 and ask to speak to a sales person or send us an email at question@integris-mgt.com to get started. Or check out what you could do with a PPP by visiting our online calculator.

• The new regulations are set out below:

Exemption respecting plans for connected persons

19A   (1)    Subject to subsection (3), the Act and these regulations, other than the provisions set out in subsection (2), do not apply in respect of a pension plan if all of the members of the plan are connected with the participating employer within the meaning of section 8500(3) of the federal Income Tax Regulations. 

          (2)    All of the following provisions apply to a pension plan referred to in subsection (1):

                   (a)      provisions of the Act: Sections 2, 33, 37, 42 to 44, 50 to 54, 61, 63 to 72, 74, 80, 85, 87 to 91, 112 and 117;

                 (b)     provisions of these regulations: Sections 2, 19A, 19B, 46, 47, 49, 50, 82 to 84, 125, 129, 132 to 147, 160, 161, 195 to 252 and Schedule 3: Nova Scotia LIRA Addendum to Schedule 6: Life Income Factor D. 

          (3)    To qualify for the exemption in subsection (1), the administrator of a pension plan must provide the Superintendent with a certified statement

                   (a)      attesting to the fact that all of the members of the plan are connected with the participating employer within the meaning of section 8500(3) of the federal Income Tax Regulations, as required by subsection (1); and 

                   (b)     expressing the administrator’s understanding and acknowledgement that the pension plan will be exempt from the Act and these regulations, with the exception of the provisions listed in subsection (2).

Notice that exemption no longer applicable

19B    The administrator of a pension plan that is exempted under Section 19A must provide the Superintendent with written notice no later than 90 days after the date of any change in circumstance that results in the plan no longer meeting the criteria for exemption under Section 19A.