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New PSPA Regulation –
Amend Your Plan Now!
New draft amendments to the Income Tax Act and Regulations will have a significant impact, particularly on pension plan sponsors who wish to amend their plans to reflect the new maximum defined benefit pension limits. To avoid having to report PSPAs, these amendments must be made in 2004. Also, DC plan sponsors who want to provide variable benefits will have to amend their plans to provide them. Any amendment to provide variable benefits is subject to approval under pension standards legislation. However, at present, many pension standards jurisdictions do not permit DC plans to pay RRIF-type benefits.
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