5-912830
Re: Self-Funded Leave Plan
This is in reply to your letter of October 10, 1991 concerning the Federal government's self-funded leave plan.
More particularly, you ask when amounts deferred under the plan on behalf of an employee and held in trust by the must be paid out in the event of the employee's death, termination of employment or transfer to another department that does not offer a self-funded leave plan.
Should one of the above events occur in a particular taxation year, the amounts held in trust for the employee may be paid out any time thereafter and must be paid out by the end of the taxation year following the year in which the event occurred. For example, if the event occurred during 1991, the amounts held in trust must be paid out by December 3l, 1992.
We trust our comments are of assistance.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate