Canadian Bar Association Submits Brief on Protecting RRSPs from Creditor Remedies

The Canadian Bar Association British Columbia Branch has submitted a brief to the Minster of Finance advocating legislation exempting Registered Retirement Savings Plans from creditor remedies. The brief has a summary of arguments in favour of exempting Registered Retirement Savings Plans at page 9 as follows:

There are many practical reasons to enact the Registered Plan (Retirement Income) Exemption Act. First, Canadian law encourages retirement savings and the Registered Plan (Retirement Income) Exemption Act promotes and protects this worthy policy goal. Second, the data on retirement savings show that Registered Plans are essential for a healthy and adequate standard of living for British Columbians in retirement. Third, the data show that Registered Plans need to be protected from creditors to maintain this healthy and adequate standard of living. Fourth, the current law inflicts an unfairness on holders of Registered Plans and simple justice requires this unfairness to end now. Fifth, self-employed British Columbians need the protection from enforcement against Registered Plans. Sixth, the Registered Plan (Retirement Income) Exemption Act would yield many benefits, including injecting needed certainty into the law, harmonizing British Columbia law with federal law and encouraging growth in the British Columbia economy. In all, the benefits by enacting the Registered Plan (Retirement Income) Exemption Act would make British Columbia a leader across Canada.

Currently, British Columbia law affords creditor protection for Registered Pension Plans, and some life insurance products, while other Registered Plans are not afforded similar protection during the lifetime of the owner.

The brief is available here.