Caisses and credit unions retirement savings plan

CAISSES/CREDIT UNIONS RETIREMENT SAVINGS PLAN
APPLICATION FORM
Declaration of trust (1 of 2)
WHEREAS the annuitant wishes to subscribe to the Caisses/Credit Unions
retirement savings plan (hereinafter referred to as the ‘‘Plan’’) in
accordance with the Income Tax Act (Canada), and any applicable income
tax legislation in the province designated in the annuitant's address in this
application (hereinafter referred to as the ‘‘Applicable Tax Legislation’’);
WHEREAS DESJARDINS TRUST INC., (hereinafter referred to as the
‘‘Issuer’’), a corporation having its head office in Montréal, Province of
Québec hereby agrees to be the issuer of the annuitant;
WHEREAS for the purposes hereof, the terms ‘‘spouse’’, ‘‘common-law
partner’’, ‘‘annuitant’’, ‘‘maturity’’ and ‘‘retirement income’’ have the
meanings assigned to them in the Applicable Tax Legislation;
WHEREAS for the purposes hereof, the term ‘‘shares’’ has the meaning
assigned to it by the applicable caisses and credit unions legislations.
NOW THEREFORE, the annuitant and the Issuer agree as follows:
Clause 1. The Plan shall comply with the Applicable Tax Legislation and
the Issuer will have the ultimate responsibility to administer the Plan and to
apply for its registration with the Canada Revenue Agency and, if
applicable, with the provincial government of the province designated in the
annuitant's address in this application.
Clause 2. The annuitant or his/her spouse or common-law partner may
make periodic contributions (hereinafter referred to as the ‘‘Contributions’’)
to the Issuer in lawfull money of Canada. The Contributions shall be in
Canadian dollars and shall be held by the Issuer on behalf of the annuitant
until maturity of the Plan. These Contributions shall be deposited by the
Issuer in a retirement savings account at a caisse/credit union chosen by
the annuitant.
Clause 3. It is the responsibility of the annuitant or his/her spouse or
common-law partner to ensure that the amount of his/her Contributions
does not exceed the maximum permitted under the Applicable Tax
Legislation.
The Issuer shall, upon written application made by the annuitant or his/her
spouse or common-law partner, repay the applicant, from the proceeds of
the disposal of the assets of the Plan, such amount as is required to reduce
the tax that would otherwise be payable under Part X.1 of the Income Tax
Act (Canada).
The Issuer shall not be required to verify the total amount of Contributions
made by the annuitant or his/her spouse or common-law partner and the
annuitant or his/her spouse or common-law partner shall assume full
responsibility for any tax consequences resulting from the provisions of
Part X.1 of the Income Tax Act (Canada) or from the realization of all of the
assets under the Plan, including any penalty charged in the event of
redemption prior to maturity and any loss suffered by the annuitant.
Clause 4. The interest generated by the funds accumulated in the Plan
shall be automatically reinvested in such Plan.
Clause 5.The Issuer shall keep a register and shall enter the cumulative
balance of the contributions, income and assets held in the Plan on behalf
of the annuitant.
Clause 6. The Issuer shall send the annuitant or his/her spouse or
common-law partner, as applicable, a receipt which the annuitant or his/her
spouse or common-law partner, as applicable, shall file with his/her income
tax return to justify the deduction claimed.
Clause 7. No benefit shall be paid to the annuitant prior to maturity of the
Plan, other than a refund of premiums or a payment to the annuitant.
CF-01720-000A
Clause 8. After maturity of the Plan, no benefit shall be paid to the
annuitant except in the form of retirement income, in the form of full or
partial commutation of retirement income under the Plan, or in respect of a
commutation provided for in the Applicable Tax Legislation.
Clause 9. Payment of retirement income to the annuitant shall not be made
except by way of equal payments to be made at periodic intervals not
exceeding one year, until such time as there is only one payment arising
from the full or partial commutation of retirement income and, thereafter, in
the form of equal payments to be made at periodic intervals not exceeding
one year.
Clause 10. No periodic payments shall be made under an annuity in a year
after the death of the first annuitant where the total payments exceed the
payments to be made in a year to his/her death.
Clause 11. No retirement income under the Plan may be assigned in whole
or in part.
Clause 12. No premium shall be paid after maturity of the Plan.
Clause 13. Designation of Beneficiary.
Subject to Applicable Laws, the annuitant may designate a beneficiary to
receive the Plan proceeds on the annuitant's death prior to the purchase of
a retirement income. A beneficiary designation may only be made, changed
or revoked under the Plan by the annuitant in a format required by the
Issuer for this purpose. Such designation must adequately identify the Plan
and be delivered to the Issuer prior to any payment. The annuitant
acknowledges that it is his or her sole responsibility to ensure the
designation is valid under the laws of Canada, its provinces or territories.
Clause 14. Death of Annuitant
If the annuitant dies before the purchase of a retirement income, upon the
receipt of estate documents by the Issuer, which are satisfactory to the
Issuer:
(a) if the annuitant has a designated beneficiary, the Plan proceeds will be
paid or transferred to the designated beneficiary, subject to the
applicable laws. The Trustee will be fully discharged by such payment
or transfer, even though any beneficiary designation made by the
annuitant may be invalid as a testamentary instrument; and
(b) if the annuitant’s designated beneficiary has died before the annuitant
or if the annuitant has not designated a beneficiary, the Issuer will pay
the Plan proceeds to the annuitant’s estate.
Clause 15. No advantage that is conditional on the existence of the Plan
shall be granted (except as provided for in Applicable Tax Legislation) to
the annuitant or to a person with whom he or she was not dealing at arm's
length as defined in the Applicable Tax Legislation.
Clause 16. Any annuity payable under the Plan which would otherwise be
payable to a person other than an annuitant under the Plan shall be
commuted.
Clause 17. The Issuer is entitled to be reimbursed from the assets of the
Plan for its fees as well as all charges and expenses incurred in connection
with the Plan including and without restriction, any fines and any interest
that may be payable by the Plan for any reason whatsoever (other than
penalties or interest that the Issuer is liable for under the Income Tax Act
(Canada) and that can’t be deducted from the assets of the Plan).
The Issuer shall be entitled to collect fees for administering the said Plan,
which fees the annuitant acknowledges to know and which shall be
deducted from the contributions and assets held on behalf of the annuitant.
The annuitant hereby authorizes the Issuer to collect the sums required for
such purpose from the funds held and new contributions made to the Plan
or, in the absence thereof, from the redemption price of shares. Prior
written notice shall be sent to the annuitant at least thirty (30) days before
any change in the schedule of fees takes effect.
2014-11
CAISSES/CREDIT UNIONS RETIREMENT SAVINGS PLAN
APPLICATION FORM
Declaration of trust (2 of 2)
Clause 18. If the annuitant, by the end of the year he or she attains the age
limit as provided in the Income Tax Act (Canada), has not provided written
instructions to the Issuer indicating the type of retirement income he or she
wishes to receive, the assets of the Plan shall be transferred to a
Caisses/Credit Unions Retirement Income Fund.
Clause 19. An annuitant who signs an Application Form must declare
his/her date of birth and social insurance number, which declaration shall
be considered a commitment by such annuitant to provide any further
information or documentation as may subsequently be required.
Clause 20. Except in the event of gross negligence on its part, the Issuer
shall not be liable for any act or omission, nor for any loss or depreciation
in the value of the investments.
Clause 21. Without limiting the generality of the foregoing and
notwithstanding any provisions contained herein, the Issuer shall not be
required to verify the total amount of contributions made by the annuitant or
his/her spouse or common-law partner to the Plan during a taxation year;
the annuitant or his/her spouse or common-law partner shall assume full
responsibility for any tax consequences resulting from excess contributions
or from the realization, in whole or in part, of the assets of the Plan, or from
any assignment of any asset forming part of the Plan, including any penalty
charges in the event of redemption prior to maturity and any loss sustained
by the Plan.
Clause 23. The Issuer may amend this Agreement to ensure that it
complies at all times with the conditions of registration under the Applicable
Tax Legislation.
Furthermore, the Issuer may, at its option, amend the terms and conditions
of this Agreement from time to time and undertakes to forward a thirty (30)day notice in writing to each annuitant prior to putting the said
amendment(s) into effect.
Clause 24. This Plan shall be governed in accordance with the laws of the
province of residence of the annuitant and the Income Tax Act (Canada).
DESJARDINS TRUST INC.
1 Complexe Desjardins
P.O. Box 34, Desjardins Station
Montréal (Québec) H5B 1E4
RSP 168-136
2014
Clause 22. The Issuer may resign as Issuer and be discharged from all
further obligations and liabilities under this Plan, upon giving ninety (90)
days' prior written notice to the annuitant.
The Issuer may appoint as successor issuer, under the terms hereof, any
financial corporation qualified to act as issuer in accordance with such a
contract, the provisions of the Act, of the Income Tax Act (Canada) and,
where applicable, of any provincial income tax legislation. Such
appointment shall take effect on the date specified in the instrument of
appointment whereby the said corporation is appointed successor issuer
and accepts the appointment, such date to be fixed no later than sixty (60)
days after written notice of the appointment has been sent to the annuitant.
On the effective date of the appointment, the Issuer shall transfer the
assets held under the Plan to its successor. It is, however, understood that
the Issuer shall not be obliged to effect the prepayment of the said assets
before transferring them.
Furthermore, the Issuer shall provide all the information and documents
required for its management and registration, in accordance with the
provisions, of the Income Tax Act (Canada) and, where applicable, of any
provincial income tax legislation. Effective on the date of such appointment,
the successor issuer shall assume all the duties and liabilities of the Issuer,
which shall be discharged from all its obligations and liabilities hereunder.
The annuitant may, in like manner, relieve the Issuer of its duties and
appoint a qualified successor in accordance with the provisions of the
Income Tax Act (Canada) and, where applicable, of any provincial income
tax legislation.
In such a case, the Issuer must, no later than thirty (30) days following the
request by the annuitant, transfer the assets it holds under the Plan to its
successor. It is, however, understood that the Issuer shall not be obliged to
effect the prepayment of the said assets before transferring them.
CF-01720-000A
2014-11