Q. What is the purpose of this Act?

A. The purpose of this new Act is to implement an exemption from enforcement measures by creditors for registered retirement income plans such as RRSPs or RRIFs so that the self-employed will receive the same treatment as wages earners with respect to their retirement savings. This province has a large number of self-employed individuals and it is important that our small business owners, farmers, professionals and other entrepreneurs be on a level playing field with wage earners with respect to retirement planning.

Q. Why are we exempting RRSPs from enforcement?

A. Pension plans are currently exempt from enforcement measures by creditors in legislation throughout Canada. This has created an ongoing unfairness in the treatment between those earners who use pensions for retirement purposes and those individuals whose retirement planning occurs primarily through the use of RRSPs. This Act is intended to treat retirement savings through pensions and retirement savings through RRSPs in the same manner.

Q. Why are pensions protected?

A. Pension holders are protected from creditor enforcement measures in recognition that it is in the broader public interest that retiring members of our community save money for their own retirements rather than becoming dependent on the government in their retirement. We think this rationale is equally applicable to individuals whose retirement saving occurs through registered plans like RRSPs and RRIFs.

Q. Are all types of retirement savings such as your house protected?

A. This Act is careful to focus on dedicated retirement savings so it is only registered retirement savings plans, registered retirement income funds based on those plans and deferred profit sharing plans that receive this protection. In addition, this protection only applies while those funds remain in the plan. If you take the money out prior to retirement, it would be subject to standard enforcement measures.

Q. Are there any enforcement measures that would be permitted under this Act?

A. It is important to remember that this protection only applies while those funds remain in the plan. If you take the money out prior to retirement it would be subject to standard enforcement measures. Otherwise, the only exception to the protection from creditor enforcement would be with respect to enforcement measures under The Enforcement of Maintenance Orders Act, 1997. This is also true for pensions in the Province of Saskatchewan.

Q. Does this Act apply only to Saskatchewan RRSPs? How does a Financial Institution determine if it is a Saskatchewan RRSP?

A. Jurisdiction over a debtor's RRSP will be determined through the exercise of general jurisdiction of a Court over a particular Debtor. It is well established that jurisdiction over the individual includes jurisdiction over their personalty such as RRSPs and RRIFs. In other words, in the same way that there is no such thing as a "Saskatchewan Car" for enforcement purposes there is no such thing as a "Saskatchewan RRSP"; rather there are Saskatchewan debtors that become subject to execution in the ordinary course. Location of the personalty is an enforcement issue not a jurisdiction issue.

Q. Is Saskatchewan the first province to take this step?

A. The Provinces of Prince Edward Island and Quebec already exempt RRSPs from execution in certain situations, however, Saskatchewan will be the first province to implement an Act based on the Uniform legislation. We expect other provinces will be taking steps to adopt similar legislation.

Q. Where does the idea for this Act come from?

A. This Act is the product of the Uniform Law Conference of Canada which conducted extensive consultations on this proposal. In Saskatchewan, the Institute of Chartered Accountants of Saskatchewan and their Executive Director also played an important role in the initiation and development of this project. We would like to thank them for their efforts.

Q. Is the Government of Saskatchewan saying that people don=t need to worry about paying their debts?

A. No, the position of this government is that debtors should always pay their creditors. That being said, where, at the encouragement of the federal tax system, incremental savings have occurred over a long period of time for the express purpose of retirement planning, it is our view that those retirement savings should be treated the same as pensions.