Wealth One Bank of Canada (“Wealth One
”) is a bank incorporated under the laws of Canada and is authorized to issue Retirement Savings Plans (“RSP
”) under the Income Tax Act
(Canada) (the “Act
”), as amended from time to time and applicable provincial income tax legislation, as amended from time to time (collectively, “Tax Legislation
”). The words “us
” and the “Bank
” are used in these terms and conditions (these “Terms and Conditions
”) to refer to Wealth One™. “You
” are the person named in the RSP application (the "Application") to which these Terms and Conditions are attached. For the purposes of Tax Legislation, You are the “Annuitant
” of the Plan. The Application, together with these Terms and Conditions, constitutes an RSP Application under Tax Legislation, and will be referred to in these Terms and Conditions as the “Plan
”. The word “Spouse
” means a spouse or a common-law partner for the purposes of any provision of the Act respecting an RSP and the term “Contributing Spouse
” means a Spouse whom You declare in the Application is the party who will make all contributions to the Plan (applicable only for spousal RSPs). Upon our acceptance of your Application, You agree that the following Terms and Conditions apply to the Plan.
- Establishment of the Plan: By means of the payment by the Annuitant or the Contributing Spouse, if applicable, of a deposit amount as specified in the Application, the Annuitant establishes with the Bank an RSP for his or her benefit in order to provide the Annuitant with a retirement income at the Maturity Date (as defined herein). All contributions paid to the Plan, as well as any income, capital gains or other gains of any nature whatsoever, generated or realized by the Plan, and held in the Plan by the Bank, and invested pubsuant to the Terms and Conditions provided herein, shall be applied to the establishment of a retirement income for the Annuitant on the Maturity Date. The Bank, by accepting the Application, agrees to administer the Plan in accordance with Tax Legislation and in the manner set out herein. Subject to the registration of the Plan pursuant to Tax Legislation, this Agreement takes effect from the date of acceptance of the Application by the Bank.
- Registration and Compliance: We agree to act as administrator of your Plan in accordance with these Terms and Conditions. We will register this Plan as a Registered Retirement Savings Plan (“RRSP”) under Tax Legislation. If registered, the Plan will be an RRSP. The Plan shall, at all times, comply with the conditions prescribed for RRSPs under Tax Legislation. You, as the Annuitant, agree to be bound by the Terms and Conditions from time to time imposed on the Plan by Tax Legislation.
- Contributions: Contributions and any transfers made by You to the Plan (“Contributions”) in accordance with these Terms and Conditions will be subject to the requirements of Tax Legislation. Unless otherwise permitted under Tax Legislation, no one but You can make Contributions to the Plan. We will keep all Contributions to the Plan on deposit for You. You are solely responsible for ensuring that Contributions made to the Plan do not exceed the maximum amount permitted under Tax Legislation. We have no obligation to determine or advise You with respect to the maximum amount permitted under Tax Legislation. You are responsible for ensuring that investments held in the Plan are at all times qualified investments and are not prohibited investments for the Plan under Tax Legislation. However, we can assure You that the investments issued by us for the Plan comply with the qualified investment rules. In accordance with these Terms and Conditions and the Tax Legislation, we will invest and reinvest such Contributions and gains accumulated from such Contributions in accordance with your investment instructions which we believe, in good faith, to be genuinely and properly signed or presented by You (the “Instructions”). These amounts, together with any other amounts transferred to the Plan in accordance with these Terms and Conditions and the Tax Legislation will be called “Plan Assets” in these Terms and Conditions.
- Maturity of the Plan: The Plan shall mature on the date determined in writing by the Annuitant for the commencement of retirement income payments as provided for by the Plan. This date may not be later than December 31 of the calendar year during which the Annuitant shall reach age 71 (the “Maturity Date”).
- Investments: You may invest your Contributions and other Plan Assets in one or more of the investment options that we make available to You. You are responsible for selecting investments for the Plan and assessing the merits, as well as obtaining appropriate advice in respect of these matters. Investments made in your Plan must comply with the Terms and Conditions specific to these investments. Your Instructions must comply with our requirements and we will only act on your Instructions if they are in a form acceptable to us and comply with Tax Legislation. If we do not have any Instructions from You with respect to the investment of Contributions or proceeds from the maturity of an investment in your Plan, we will invest these funds in an interest bearing Wealth One™ account or term investment at our discretion.
- Excess Contributions: Within 90 days of receipt by Wealth One™ of a written request from the Annuitant, or the Contributing Spouse, if applicable, Wealth One™ shall pay the person who made the contribution the amount set out in such request in order to reduce the amount of tax applicable to such excess Contributions under Part X.1 of the Income Tax Act (Canada).
- Withdrawals: The Plan does not provide for any payment before the Maturity Date except a refund of premiums in a lump sum or a payment to the Annuitant. Subject to such reasonable requirements as the Bank may impose, the Annuitant may at any time, prior to the Maturity Date, withdraw an amount from the Plan by providing Instructions in a form deemed satisfactory by the Bank. The Bank shall then dispose of all or certain of the Plan Assets as indicated by the Annuitant and pay to the Annuitant an amount equal to the proceeds of disposition of such assets (net of applicable disposition costs), less any (i) charges and taxes (including interest and penalties except taxes, interest and penalties for which the Bank is liable under Tax Legislation) that are or may become payable by the Bank or the Plan itself, and (ii) any amount required to be withheld therefrom on account of the Annuitant’s own liability for taxes arising on a withdrawal of funds from the Plan. Withdrawals from Plan Assets held in a locked-in arrangement may only be withdrawn as may be permitted by applicable laws as described in the applicable supplemental agreement.
Upon such payment, the Bank shall be subject to no further liability or duty to the Annuitant with respect to the Plan Assets, or the portion thereof that has been disposed of and paid. The Bank will issue to the Annuitant such information returns in respect of any withdrawal as required by applicable laws.
- Retirement Income.
Determination of Retirement Income: On the Maturity Date, the Bank shall dispose of all the Plan Assets, and using the proceeds of such disposition, after having paid any applicable disposition costs and the charges, taxes and fees payable hereunder, the Bank covenants to pay the Annuitant a retirement income, in compliance with Tax Legislation (the “Annuity”).
Except as otherwise permitted under Tax Legislation, the Annuity must be in any one or combination of the following forms:
- a fixed-term annuity, commencing on the Maturity Date, providing benefits for:
- the Annuitant's life; or
- the Annuitant's life, and to the Annuitant's Spouse after the Annuitant's death for a term of years equal to ninety (90) minus either (i) the age in whole years of the Annuitant at the Maturity Date, or (ii) where the Annuitant's Spouse is younger than the Annuitant and the Annuitant so elects, the age in whole years of the Spouse at the Maturity Date; or
- a life annuity, commencing on the Maturity Date, with or without a guaranteed term commencing on the Maturity Date, not exceeding the term described in paragraph i) above, payable (a) for the Annuitant’s life, or (b) for the lives, jointly, of the Annuitant and the Annuitant's Spouse, and to the survivor of them for the survivor's life;
and the Annuity will be subject to the following requirements:
- payments under an Annuity will be made in equal annual or more frequent periodic amounts until such time as there is a payment in full or partial commutation of the Annuity and, where such Annuity is partial, equal annual or more frequent periodic payments thereafter;
- any payment in full or partial commutation of an Annuity shall be made to the Annuitant or to his or her Spouse after the Annuitant’s death;
- the aggregate of the periodic payments in a year under an Annuity after the Annuitant’s death shall not exceed the aggregate of the payments under the Annuity in a year before that death;
- any Annuity payable hereunder shall not be assigned in whole or part; and
- in the event of the Annuitant’s death, each Annuity must be commuted if it becomes payable to someone other than the Annuitant’s Spouse.
- Election to Transfer to RRIF: Notwithstanding the foregoing, the Annuitant, in the Annuitant’s sole discretion, may, by way of a written request to the Bank not less than 90 days prior to the Maturity Date, request that the Plan Assets be transferred to a registered retirement income fund (a “
”), as defined in the Income Tax Act (Canada) in compliance with Tax Legislation.
- Default Transfer to RRIF: Notwithstanding any provision to the contrary, if, on the first day of November of the year in which the Annuitant reaches the prescribed age applicable to the most distant Maturity Date set out in Section 4 hereof, the Annuitant fails to notify the Bank in writing in accordance with subsections 7 a) or 7 b) above, the Maturity Date shall then be deemed to be the first day of December of the same year. In which case, the Bank shall be deemed to have received Instructions from the Annuitant to transfer the Plan Assets to a RRIF issued by the Bank in the Annuitant’s name in accordance with Tax Legislation. In such case, the designated beneficiary of such fund shall be the person named as the designated beneficiary thereunder, if any. A written notice of the transfer shall be provided to the Annuitant.
- No Advantage: The Annuitant, or a person with whom the Annuitant does not deal at arm’s length, within the meaning of Tax Legislation, may not receive any benefits, payments or advantages, other than the benefits authorized under this Plan and Tax Legislation.
- Transfers to the Plan: You may request a transfer to the Plan from any source permitted by Tax Legislation, including a transfer to the Plan of all or part of the funds of another RRSP that You own. We may, in our sole discretion, refuse to accept a transfer for any reason and may transfer out of the Plan property that is not or may not be a qualified investment (as defined under Tax Legislation). The Terms and Conditions of the Plan may be subject to additional Terms and Conditions required to complete the transfer under Tax Legislation.
- Transfers from the Plan: You may request a transfer of all or part of the Plan Assets (or an amount equal to its value) to another RRSP that You own as permitted under Tax Legislation. You may request a transfer of all or part of the Plan Assets to a RRSP or registered income fund owned by your Spouse, or former Spouse if the transfer is made under the terms of a lawful division of property due to the breakdown of your marriage or common-law partnership provided such transfer from the Plan is in accordance with Tax Legislation. All transfer requests may be subject to tax under Tax Legislation and to related fees or costs. We will process your transfer request in a reasonable period of time after we have received all documents required by us and applicable law.
- Designation of Beneficiary (not available for RSPs in the Province of Quebec): Where permitted under applicable law, you may designate a beneficiary of the Plan to receive the Plan Assets after your death (the “Beneficiary”). You may only make, change or revoke a designation by providing us with written notice signed by You in a form acceptable to us or prescribed by us or by valid will under applicable law. In order to be effective, any designation or change or revocation notice must be delivered to us before any payment as a result of your death has been made hereunder. Any designation, amended designation or revoked designation will be valid on the day following its receipt by us or, in the case of a valid will, as of the day of execution of the will. We will not accept designations that are irrevocable.
- Distribution on Death: Upon receipt of satisfactory evidence of your death and other legal documents pertaining to your death which we may reasonably request, we will pay the proceeds of the Plan Assets to your designated Beneficiary if that person was living on the date of your death. If You have not designated a Beneficiary, if the designated Beneficiary predeceases You, or if we cannot establish a valid designation of Beneficiary, then the proceeds of the Plan Assets will be paid to your estate. For greater certainty, any payment of the proceeds of the Plan Assets following your death will be paid subject to the deduction of all proper charges including all applicable taxes, fees and no payment will be made unless and until we receive all releases and other documents that the Bank may reasonably request in its sole discretion.
- Fees and Expenses: The Bank shall be paid the fees and other charges it prescribes from time to time, which may be directly charged against and deducted from the Plan Assets. The Bank shall be entitled to charge fees upon the termination of the Plan, the transfer or withdrawal of Plan Assets or any other event which it may reasonably determine. These fees are disclosed to the Annuitant in accordance with the applicable laws. The Annuitant shall reimburse the Bank for all fees, expenses and costs incurred by it or its agents in connection with the administration of the Plan.
The reimbursement of any and all taxes, interest or penalties payable may be directly charged against and deducted from the Plan Assets but only as far as permitted by Tax Legislation. The Bank may then, without further notifying the Annuitant, dispose of Plan Assets, in whole or in part, on such conditions as it may determine and apply the proceeds of such disposition to the payment. The Bank shall not be liable for any losses incurred as a result of such disposition.
- Set-Off: The Bank is not entitled to offset any debt or obligation owed by the Annuitant with the Plan Assets.
- Security: The Plan or the Plan Assets may not be pledged, assigned or in any way alienated, as security for a loan or for any purpose other than that of providing a retirement income, commencing at the Maturity Date, for the Annuitant.
- Interest: Interest is calculated and paid in accordance with the investment option(s) selected.
- Separate Account and Tax Information: The Bank shall maintain a separate account for the Plan and shall provide to the Annuitant annually or more frequently, a statement showing, for each period, the payments made to the Annuitant, the Plan Assets, the value of the Plan, any income realized by the Plan, the fees debited from the account since the last statement, the balance of the account as well as any other information deemed relevant by the Bank in its sole discretion.
The Bank shall annually provide the Annuitant with information returns regarding the payments made to the Annuitant out of the Plan in accordance with Tax Legislation.
The Annuitant will be solely responsible for ensuring that any deduction claimed for income tax purposes does not exceed the permitted deductions under Tax Legislation. The Annuitant will be solely responsible for determining the tax consequences of any transfers, withdrawals, payments or other benefits with respect to this Plan and he or she undertakes to declare these when required, in accordance with Tax Legislation.
- Locked-In Terms and Conditions: The Plan Assets to which the Terms and Conditions for locked-in contributions apply shall be accounted for separately and shall be subject to additional terms and conditions, which form part of the Terms and Conditions of the Plan set out herein. Subject to applicable legislation and in the event the Terms and Conditions of the Plan, as set out herein, are not compatible with the additional Terms and Conditions, said additional Terms and Conditions shall apply and take precedence.
- Notices to You: Any notice, statement, receipt, request or other communication or information relating to the Plan (“Notice”) required or permitted to be given to You by us must be in writing and will be sufficiently given if it is sent by prepaid mail, courier, electronic mail or other form of electronic transmission addressed to You at the address provided by You on the Application or at the last address known to us in connection with this Plan and any such Notice shall be deemed to have been given and received by You on the day the Notice is delivered or, if mailed, on the day of mailing.
- Notices to Us: Any Notice given to us by You must be in writing and in a form satisfactory to us and shall be sufficiently given if it is sent by prepaid mail to the head office of Wealth One™ or by such form of electronic transmission as we may permit. We may for any reason refuse to act on any Notice or Instruction given to us by You and we will not be responsible for any resulting harm. Any Notice or Instruction given to us will be deemed to have been given and received on the day the Notice is delivered or received by us.
- Restriction: Except as allowed by the Act, no advantage that is conditional in any way on your Plan’s existence may be extended to You or a person with whom You do not deal “at arm’s length”.
- Amendments: We may from time to time, in our sole discretion, amend the terms of this Agreement (i) to satisfy the requirement of any applicable law, or (ii) by giving thirty (30) days’ notice in writing thereof to the Annuitant, provided, however, that any such amendments shall not disqualify the Plan as a RRSP within the meaning of Tax Legislation.
- Delegation of Duties: Without limiting our responsibility as issuer of the Plan, we may appoint an agent (the “Agent”) to perform certain administrative and other duties relating to the operation of the Plan as we may determine from time to time. The ultimate responsibility for the administration of the Plan lies with us.
- Indemnification: You, your heirs, executors, administrators or legal representatives and any Beneficiary of the Plan will at all times indemnify and save harmless the Bank, its directors, officers and agents in respect of any claims, demands, taxes, penalties or interest that may be imposed under Tax Legislation on the Bank, whether by way of assessment, reassessment or otherwise, or any other loss, charges, costs, expenses or damages levied or imposed on the Bank by any government authority, upon or in respect of the Plan or in respect of payments made out of the Plan. Any such payments must be made within thirty (30) days of the date that You or your Beneficiary are notified by us.
- Successor Issuer: The Bank may resign as issuer of the Plan and be discharged from all duties and liabilities under the Plan by giving You ninety (90) days’ notice. If You do not appoint a successor issuer within ten (10) days of our written notice, we may appoint a successor issuer for the Plan for You. We will provide the successor issuer with all information, cash amounts or securities as necessary for the administration of the Plan. After the said date, the successor shall assume all our duties and responsibilities, and we shall then be freed from all of our obligations and responsibilities under the Terms and Conditions provided herein.
- Governing Law: The Plan shall be governed and construed in accordance with the laws of the province in which You reside, as shown in the Application, and with Tax Legislation.
- Choice of Language: It is your express wish that these Terms and Conditions and any related documents be drawn up in English. Vous avez expressément demandé que les présentes modalités ou tout autre document y afférent soient rédigés en anglais.
- Severability: In the event that all or part of a provision herein is determined by a court of competent jurisdiction to be invalid or unenforceable for any reason, then such provision or such part of a provision shall be deemed to be severable and the remainder of these Terms and Conditions shall remain in full force and effect notwithstanding such severance.
- Binding: The Terms and Conditions of the Plan will be binding on your heirs, executors, administrators or legal representatives and on our successors and assigns.
- Currency: All sums of money payable hereunder shall be payable in money which is legal tender in Canada.
- Interpretation: Wherever the context so requires, a word used in the masculine gender shall include the feminine or neuter and vice versa, and the singular number shall include the plural and vice versa.