Pension benefits and other savings: What's "seizable" and what's not!

What are the rules of seizure that apply to Quebeckers' retirement pension payments and retirement savings?

Exempt from Seizure

Benefits paid under the federal Old Age Security program.
Benefits paid under the Act respecting the Québec Pension Plan.
Benefits accumulated in supplemental pension plans (SPPs) subject to the Supplemental Pension Plans Act, or administered by the CARRA, such as the Government and Public Employees Retirement Plan (GPERP), the Teachers Pension Plan (TPP), and the Civil Service Superannuation Plan (CSSP).
Any sum coming from an SPP subject to the Supplemental Pension Plans Act, for example, sums paid in the form of a benefit or refund or sums transferred to an annuity contract, a locked-in retirement account (LIRA), a life income fund (LIF), a registered retirement savings plan (RRSP) or a registered retirement income fund (RRIF).
RSSPs offered by insurers and trust companies if they are annuity contracts and if the designated beneficiary is the spouse, descendant or ascendant of the RRSP holder or any other irrevocably designated beneficiary.

Exceptions
- 50% of benefits paid under the federal Old Age Security program can be seized for payment of delinquent support payments.
- 50% of retirement and disability pensions paid under the Act respecting the Québec Pension Plan can also be seized for payment of delinquent support payments.
- Benefits accumulated in an SPP administered by the CARRA become seizable when they are no longer in the SPP, for example, when they have been transferred to an LIRA or an LIF.
- Additional voluntary contributions to an SPP as well as sums from a not locked-in account in a simplified pension plan become seizable when they are no longer in the SPP, for example when they have been transferred to an RRSP.
- Benefits accumulated in an SPP referred to in section 2.1 of the Supplemental Pension Plans Act (an SPP for major shareholders and that is not registered with the Régie des rentes du Québec) become seizable when they are no longer in the SPP.
- When an SPP subject to the Supplemental Pension Plans Act is terminated, any surplus assets allocated to a member, a beneficiary or the employer are seizable.
- 50% of the benefits accumulated in an SPP can be seized for payment of delinquent support payments.
- Benefits accumulated in an SPP can be seized for execution of partition of family patrimony or payment of a compensatory allowance.
- 50% of the sums comming from an SPP subject to the Supplemental Pension Plans Act, in particular LIRAs, LIFs, RRSPs, RRIFs and annuity contracts that are usually unseizable, can be seized for payment of delinquent support payments.
- Sums comming from an SPP subject to the Supplemental Pension Plans Act, in particular LIRAs, LIFs, RRSPs, RRIFs and annuity contracts that are usually unseizable, can be seized for execution of partition of family patrimony or payment of a compensatory allowance.
- RRSPs that are otherwise unseizable become seizable in the case of the bankruptcy of an insolvent debtor, when the bankruptcy occurs.
- Federal tax authorities can seize for payment of tax debts any benefits coming from an SPP, an RRIF or an LIF.

Seizable

Registered retirement savings plans (RRSPs) that do not meet the conditions to be unseizable.
Registered retirement income funds (RRIFs) whose holdings are not limited solely to sums transferred from an SPP subject to the Supplemental Pension Plans Act.
In general, all other forms of retirement savings (top-hat plans, deferred profit sharing plans, retirement agreements, etc.).

Note...

Unseizable sums become seizable when they are commingled with seizable sums, for example, when an unseizable pension benefit received from an SPP is deposited in a bank account in which seizable sums are also deposited.

Worth knowing about...

For all SPPs not mentioned here, contact the competent authority to find out whether contributions or benefits are seizable.
Those who live outside Québec and have contributed to both the Canada Pension Plan (CPP) and the Québec Pension Plan (QPP), as well as workers who have contributed only to the CPP, should contact the Department of Human Resources and Social Development Canada regarding the rules of seizure that apply to CPP benefits.
Québec residents who have contributed to both the CPP and the QPP are subject to the rules of seizure set out in the Act respecting the Québec Pension Plan.

The advantages of exemption... for debtors

The main advantage of exemption from seizure is that the amounts owing under the plans cannot be seized by creditors.

People facing financial difficulties can still count on their retirement income to provide a necessary minimum amount of funds. However, their credit rating will be adversely affected by the fact that some of their assets cannot be seized.

The disadvantages of exemption... for creditors

For some people, exemption from seizure can become a way to avoid paying debts.





Pension benefits and other savings: What's "seizable" and what's not! What are the rules of seizure that apply to Quebeckers' retirement pension payments and retirement savings? Exempt from Seizure Benefits paid under the federal Old Age Security program. Benefits paid under the Act respecting the Québec Pension Plan. Benefits accumulated in supplemental pension plans (SPPs) subject to the Supplemental Pension Plans Act, or administered by the CARRA, such as the Government and Public Employees Retirement Plan (GPERP), the Teachers Pension Plan (TPP), and the Civil Service Superannuation Plan (CSSP). Any sum coming from an SPP subject to the Supplemental Pension Plans Act, for example, sums paid in the form of a benefit or refund or sums transferred to an annuity contract, a locked-in retirement account (LIRA), a life income fund (LIF), a registered retirement savings plan (RRSP) or a registered retirement income fund (RRIF). RSSPs offered by insurers and trust companies if they are annuity contracts and if the designated beneficiary is the spouse, descendant or ascendant of the RRSP holder or any other irrevocably designated beneficiary. Exceptions 50% of benefits paid under the federal Old Age Security program can be seized for payment of delinquent support payments. 50% of retirement and disability pensions paid under the Act respecting the Québec Pension Plan can also be seized for payment of delinquent support payments. Benefits accumulated in an SPP administered by the CARRA become seizable when they are no longer in the SPP, for example, when they have been transferred to an LIRA or an LIF. Additional voluntary contributions to an SPP as well as sums from a not locked-in account in a simplified pension plan become seizable when they are no longer in the SPP, for example when they have been transferred to an RRSP. Benefits accumulated in an SPP referred to in section 2.1 of the Supplemental Pension Plans Act (an SPP for major shareholders and that is not registered with the Régie des rentes du Québec) become seizable when they are no longer in the SPP. When an SPP subject to the Supplemental Pension Plans Act is terminated, any surplus assets allocated to a member, a beneficiary or the employer are seizable. 50% of the benefits accumulated in an SPP can be seized for payment of delinquent support payments. Benefits accumulated in an SPP can be seized for execution of partition of family patrimony or payment of a compensatory allowance. 50% of the sums comming from an SPP subject to the Supplemental Pension Plans Act, in particular LIRAs, LIFs, RRSPs, RRIFs and annuity contracts that are usually unseizable, can be seized for payment of delinquent support payments. Sums comming from an SPP subject to the Supplemental Pension Plans Act, in particular LIRAs, LIFs, RRSPs, RRIFs and annuity contracts that are usually unseizable, can be seized for execution of partition of family patrimony or payment of a compensatory allowance. RRSPs that are otherwise unseizable become seizable in the case of the bankruptcy of an insolvent debtor, when the bankruptcy occurs. Federal tax authorities can seize for payment of tax debts any benefits coming from an SPP, an RRIF or an LIF. Seizable Registered retirement savings plans (RRSPs) that do not meet the conditions to be unseizable. Registered retirement income funds (RRIFs) whose holdings are not limited solely to sums transferred from an SPP subject to the Supplemental Pension Plans Act. In general, all other forms of retirement savings (top-hat plans, deferred profit sharing plans, retirement agreements, etc.). Note... Unseizable sums become seizable when they are commingled with seizable sums, for example, when an unseizable pension benefit received from an SPP is deposited in a bank account in which seizable sums are also deposited. Worth knowing about... For all SPPs not mentioned here, contact the competent authority to find out whether contributions or benefits are seizable. Those who live outside Québec and have contributed to both the Canada Pension Plan (CPP) and the Québec Pension Plan (QPP), as well as workers who have contributed only to the CPP, should contact the Department of Human Resources and Social Development Canada regarding the rules of seizure that apply to CPP benefits. Québec residents who have contributed to both the CPP and the QPP are subject to the rules of seizure set out in the Act respecting the Québec Pension Plan. The advantages of exemption... for debtors The main advantage of exemption from seizure is that the amounts owing under the plans cannot be seized by creditors. People facing financial difficulties can still count on their retirement income to provide a necessary minimum amount of funds. However, their credit rating will be adversely affected by the fact that some of their assets cannot be seized. The disadvantages of exemption... for creditors For some people, exemption from seizure can become a way to avoid paying debts.	<div class="