Annual lists 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995

Ottawa, February 17, 1997
1997-013

Draft Amendments Relating to Retirement Savings

Related document:

• Draft Amendments Relating to Retirement Savings (Adobe Acrobat Version - 44,451 bytes).

Finance Minister Paul Martin today released draft amendments to the Income Tax Regulations relating to retirement savings measures announced in the March 6, 1996 federal budget.

Most notably, the draft amendments:

• reduce, from 71 to 69, the age at which an individual's pension must begin under a registered pension plan (RPP);

• defer until 2005 the indexing of the $1,722.22 RPP defined benefit limit;

• eliminate until 2005 up to $1,000 of new RRSP deduction room that might otherwise become available each year to high-income earners participating in foreign pension plans and various unregistered Canadian pension arrangements; and

• incorporate the draft amendments issued in Finance Canada release 95-058 (dated July 20, 1995).

Mr. Martin noted that several of the provisions relating to the elimination of the $1,000 of RRSP room impact on the determination of an individual's pension adjustment for 1996, which employers must report by the end of February 1997.

Mr. Martin noted that amendments to the Income Tax Act implementing the other 1996 budget measures relating to retirement savings were included with the Notice of Ways and Means Motion tabled in the House of Commons on December 5, 1996.

___________________
For further information:

Dave Wurtele
Tax Legislation Division
(613) 992-4390