The Federal government introduced amendments to the Income Tax Act (Canada) to permit Variable Payment Life Annuities (VPLA) through Bill C-30, An Act to implement certain provisions of the budget. C-30 was tabled in Parliament on April 19, 2021 and received Royal Assent on June 29, 2021. Quebec also introduced VPLA legislation in its Supplemental Pension Plans Act (SPP Act) in December 2020. We’re hopeful that other jurisdictions will soon follow suit and introduce similar changes.
We’re excited about the news. We’ll review the details of the legislation and regulations as soon as they are available. Sun Life administers two of a small number of existing VPLA plans that were grandfathered under the Income Tax Act (Canada). This experience positions us well to offer these plans to our Clients.
Are you interested in discussing whether a VPLA is appropriate for your plan? Please contact your Sun Life Group Retirement Services representative.