Newsletter no. 94-4, Wind-Up Valuation Report

November 18, 1994

In this newsletter we confirm that you do not have to send a wind-up valuation report to Canada Revenue Agency (subject to our comments below under the heading "Request for a wind-up valuation report") when there is a partial or full wind-up of a defined benefit provision of a registered pension plan (RPP).

We also confirm that you do not need to get our approval before you can:

References to "the Act" mean the Income Tax Act, and references to "the Regulations" mean the Income Tax Regulations.

Providing information on the wind-up of an RPP

When an RPP is fully wound-up, the plan administrator will have to file a final Annual Information Return (Form T244) within 60 days of the date the last of the plan assets were paid or transferred from the RPP. To get Form T244, go to or call 1-800-959-5525.

On receipt of the completed Form T244, we will send a letter to the plan administrator confirming that, as requested by the employer (plan sponsor), we have terminated the registration of the pension plan. The termination date will be the date immediately following the date the last of the plan assets were paid or transferred from the RPP. This will ensure that the pension plan assets remain tax sheltered while they are held under the RPP. Request for a wind-up valuation report

Section 8410 of the Regulations allows Canada Revenue Agency to request, at any time, that a plan administrator file a report prepared by an actuary on the defined benefit provisions of a plan.

When a defined benefit provision is partially or fully wound-up we may request that a plan administrator file a wind-up valuation report prepared by an actuary. The information provided in the report will help us verify that the plan assets have been paid or transferred in accordance with the terms of the plan as registered, and the provisions of the Act and Regulations.

All requests for a wind-up report will set out a reasonable time limit for filing the report and the information to be contained in the report. The information we need is basically the same information on a plan wind-up that is required by most provincial pension authorities. That is:

The additional information we require is:

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