D. Duff
(613) 957-349824(1)
19(1)
September 14, 1990
19(1)
Your letter of June 25, 1990, to Bonnie Greer of the Registered Pension and Deferred Income Plans Division, has been forwarded to us for reply.
An annuitant under an RRIF, at any particular time, is defined in paragraph 146.3(1)(a) of the Income Tax Act ("Act") as the individual to whom the carrier has undertaken to make the payments pursuant to paragraph 146.3(1)(f). If the annuitant elects under paragraph 146.3(1)(f), the carrier undertakes to make payments tothe annuitant's spouse as well as to the annuitant. Therefore, an election under paragraph 146.3(1)(f), will result in the spouse becoming the annuitant upon the death of the first annuitant.
Paragraph 146.3(2)(a) of the Act requires that a fund, to be accepted for registration, provides for only those payments listed therein. Paragraph 146.3(2)(d) requires the distribution of all of the property of the fund on the annuitant's death, unless the spouse becomes the annuitant. Thus the only way the annual payments can continue after the death of the first annuitant is if the spouse becomes the annuitant. If this occurs, we know of no provisions which would permit the powers of this second annuitant to be limited. Consequently, if a plan provided for the regular payments to continue to the annuitant's spouse after his death, without the spouse becoming the annuitant, it would not meet the requirement for registration in paragraph 146.3(2)(d).
We trust the above comments will be of assistance to you.
Yours truly,
for Director Financial Industries Division Rulings Directorate
c.c. Gisela Schantje Registered Plans Division