This report considers whether registered retirement savings plans (RRSPs), deferred profit sharing plans (DPSPs), and registered retirement income funds (RRIFs) should be wholly or partly exempt from creditors’ remedies during the lifetime of the plan holder. This report also considers the exempt status of locked-in retirement accounts (LIRAs), life income funds (LIFs) and locked-in retirement income funds (LRIFs). Draft legislation is included. This report states that insurance and non-insurance RRSPs, DPSPs and RRIFs as defined in the Income Tax Act, and obligations to pay money out of such plans, should be totally exempt from all prejudgment and post-judgment creditors’ remedies. The same applies to LIRAs, LIFs, and LRIFs and non-insurance plans. Arguments for these conclusions are provided, as well as proposals for their transition. A new exemption should extend to direct payment or direct transfers of funds or property form one registered future income plant to another as permitted by the Income Tax Act.
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