LOCKED-IN RETIREMENT ACCOUNT (LIRA)
APPLICATION FORM
Registration RER 211-053LI
FAMILY NAME
REGISTRATION
FIRST NAME AND INITIALS
MR.
MS.
CORRESPONDENCE
FRENCH
ENGLISH
ADDRESS
PROVINCE
POSTAL CODE
TELEPHONE - OFFICE
DATE OF BIRTH (MM/DD/YYYY)
EXTENSION
SOCIAL INSURANCE NO.
TELEPHONE – HOME
TO: LBC TRUST
I hereby apply for a Locked-in Retirement Account of Laurentian Bank Securities and require that this Plan be registered as an eligible Retirement Savings Plan
under federal and provincial income tax legislation, regulations and amendments, and registered as a Locked-in Retirement Account under the Quebec Act
respecting supplemental pension plans, its regulations and amendments (hereinafter called, the “Acts”). I authorise the Trustee to delegate Laurentian Bank
Securities as agent of the plan.
1. Any benefit or other payment I receive under this Plan shall be added to my income and taxed in accordance with the applicable legislation.
2. I agree to provide any proof of my age required by the Trustee.
3. The Trustee may modify its fees and charges in the manner and in accordance with the conditions provided for in Section 12 of this agreement.
I have read the Declaration of Trust appearing on the front and back of this form and accept all the provisions thereof.
Annuitant’s Signature
Date of Application (Y-M-D)
Origin of Funds
Signature of an Authorized Representative of LBC Trust
LAURENTIAN BANK SECURITIES
LOCKED-IN RETIREMENT ACCOUNT - DECLARATION OF TRUST (Province of Quebec only)
LBC Trust (hereinafter referred to as the “Trustee”), through a representative
duly authorized to sign on its behalf, hereby agrees, according to the terms
and conditions hereafter, to act as trustee for the person identified on the
reverse side of the present Declaration of Trust (hereafter referred to as the
“Annuitant”, as defined in the Income Tax Act (Canada)) who wishes to
subscribe to the LAURENTIAN BANK SECURITIES Locked-in Retirement
Account (hereafter referred to as the “Plan”).
DELEGATION – It is understood that the Trustee may delegate to
LAURENTIAN BANK SECURITIES (hereinafter referred to as the “Agent”) or
to any other duly authorized mandatary that it may choose to appoint, any of
its tasks and responsibilities pursuant to the Plan that can be legally
delegated, all of which can be periodically agreed upon between the Trustee,
the Agent, or his mandatary. Notwithstanding the foregoing, pursuant to all
applicable laws and the provisions herein, the ultimate responsibility with
regard to the administration of the Plan remains that of the Trustee, without
prejudice, however, to (or in any way affecting or diminishing) the rights and
obligations of the Trustee with regard to all third parties (including, and not
limited to, the Agent or the Annuitant) pursuant to the provisions hereof or
pursuant to any mandate or any other agreement concerning the Plan.
DEFINITIONS – Within the present Declaration of Trust, the subscription form
in addition to the terms that are defined elsewhere:
“Act” means the Income Tax Act (Canada).
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“Pension Plans Act” means the Supplemental Pension Plans Act (Québec),
including its regulations and amendments.
“Spouse” means the individual who is considered a spouse according to
section 85 of the Pension Plans Act, however, notwithstanding anything to the
contrary contained in the Plan or in the present Declaration of Trust, including
any endorsements forming a part thereof, “Spouse” does not include any
person who is not recognized as a spouse or common law partner, as the case
may be, for the purposes of any provision of the Act relating to registered
retirement saving plans.
“Tax Acts” mean the Act as well as all applicable provincial tax legislation,
including their respective regulations and amendments.
1. REGISTRATION – The Trustee shall make the request for registration of
the Plan in accordance with the provisions of the Act.
The Trustee declares that the Plan is in conformity with the provisions of the
standard contract registered under the Pension Plans Act.
As long as the Plan is admissible for registration pursuant to the Act, it shall
constitute an irrevocable trust and the property held by the Trustee, subject to
the requirements prescribed by the Act, cannot be pledged, assigned or in any
way alienated as security for a loan or for any purpose other than that of
providing the Annuitant with, upon termination date, a retirement income.
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However, nothing herein shall constitute a representation by the Trustee,
either confirming or denying the seizable nature of the property held by the
Trustee, subject to the Plan.
The Plan shall not confer any “advantage” (as that term is defined in subsection
207.01(1) of the Act, and, if necessary, in the equivalent provisions of any
applicable Tax Acts upon the Annuitant or any person with whom he is not
dealing at arm’s length.
As provided for in paragraph 146(2)(c), no retirement income provided for under
this Plan may be assigned in whole or in part.
2. ORIGIN OF THE FUNDS - The Annuitant declares that the funds being
transferred to the Plan originate directly or initially from any plan referred to in
paragraphs 1, 2, 2.1, 2.2, 3.1 or 5 of section 28 of the regulation made under the
Pension Plans Act (collectively hereinafter “contributions”).
The Trustee shall send the Annuitant, at least once a year, a statement indicating
the sums deposited, their source, the accumulated earnings and fees debited
since the last statement, and the balance of the Plan.
No premium shall be paid after maturity of the Plan.
3. INVESTMENTS – The contributions received by the Trustee or the Agent
or, if applicable, its duly designated mandatary, and the income they generate
shall be:
a) Invested according to the directives given by the Annuitant to the Trustee
or the Agent. However, all investments must be (i) made in accordance with
the provisions of the Tax Acts, (ii) among the investments that are approved
for purposes of a retirement savings plan by the Trustee or the Agent, and (iii)
“qualified investments” and not “prohibited investments” for trusts governed by
a registered retirement savings plan in conformity with the Act (and, if
applicable, other Tax Acts).;
b) Failing directives from the Annuitant, the Trustee or the Agent can invest
the balance of the Plan, in all or in part, according to the last directive given by
the Annuitant or in any other way, which it will consider advisable including
share, bonds or any debt securities issued by the Trustee or any affiliated
company, without being required to do so, notwithstanding any laws of any
jurisdiction regarding the investment of property of others, and, without
incurring liabilities in this regards.
The Annuitant shall be responsible for determining if the assets held by the
Plan constitute “qualified investments” or “prohibited investments” for trusts
governed by registered retirement savings plans in conformity with the Act and
other Tax Acts, and the Trustee shall not be liable in this regard. The Trustee
(which includes, for greater certainty, the Agent or its representatives, as
applicable) shall not be liable for taxes (other than those taxes, penalties and
interest that the Trustee is liable for under the Act and that cannot be paid out
of the property of the Plan) that may be payable by the Annuitant or the Plan
with respect to all non-qualified or prohibited investments or as a result of the
Plan being considered to carry on one or more businesses (except towards the
tax authorities, as may be prescribed by the Tax Acts, in which case the
Annuitant agrees to hold harmless the Trustee in respect of any loss of
damage that the Trustee may suffer in connection with the above).
If an investment is, was or becomes non-qualified or prohibited under the Act,
the Annuitant will take all necessary measures to immediately liquidate any
non-qualified or prohibited investment under the Act, and in the alternative,
hereby authorizes the Trustee to liquidate or to give instructions to any other
party to liquidate, any non-qualified or prohibited investment under the Act but
in no event shall the Trustee be obligated to liquidate or to give instructions to
liquidate except as specifically authorized by the Annuitant in writing.
The Annuitant recognizes that the Trustee shall not incur any liability with
regards to the investment choices that the Annuitant makes or for the
consequences arising therefrom, even if the Trustee has prior knowledge of
such investment choices before said choices were executed, including
whether or not the Plan does include in fact non-qualified investments.
Notwithstanding the foregoing, the Trustee must, at all time, exercise the care,
diligence and skill of a reasonably prudent person to minimize the possibility
that the Plan holds non-qualified investments.
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Additionally, the Trustee shall not be responsible for any loss or depreciation in
the value of the investments for the duration of the Plan. The Trustee shall
likewise not be liable for losses resulting from the sale or purchase of an
investment, or otherwise incurred during the liquidation of all or parts of the
Plan assets. Additionally, if interest charges, taxes or penalties are owed once
the Plan ceases to exist, the Annuitant must indemnify the Trustee and hold
the Trustee harmless.
4. MATURITY OF THE PLAN – The Annuitant shall, by a written notice to
the Trustee, at least 90 days before the maturity date prescribed or required
for in paragraph 146(2)(b.4) of the Act, specify the form that the Annuitant’s
retirement income shall take. The Annuitant shall be fully responsible for
specifying the maturity date of the Plan and choosing an eligible retirement
income pursuant to the Act.
Failing written instructions from the Annuitant within the said period, the assets in
the Plan or the proceeds of disposition of the assets shall be transferred, at the
Trustee’s entire discretion, to a life income fund or will be reimbursed, less any
applicable income tax deductions.
The Trustee may require the Annuitant to produce proof of age if the Trustee is
not satisfied that the Annuitant’s prior statement as to his or her age in fact
corresponds to the Annuitant’s actual age.
5. BENEFITS AFTER MATURITY - Upon maturity of the Plan, no benefit
shall be paid to the Annuitant, except for the purchase of an annuity that meets
all the requirements set out in subsection 146(1) of the Act or for the transfer of
the balance of the Plan to a life income fund which must be used as retirement
income, in accordance with section 146 (2)(c.2) of the Act or the provisions of the
Pension Plans Act.
Retirement income shall only be paid to the Annuitant in the form of equal
periodic payments, at intervals of no more than one (1) year. Pursuant to
paragraph 146 (2)(b.2) of the Act, the total payments of an annuity payable
periodically in a year after the death of the Annuitant shall not exceed the total of
the payments in the year preceding the death.
6. DEATH OF ANNUITANT BEFORE THE MATURITY OF THE PLAN - In
the event of the Annuitant’s death before the conversion of the balance into an
annuity, the Trustee shall pay in a lump-sum payment the market value of the
balance held in trust to the Spouse of the Annuitant or, failing that, to the
Annuitant’s successors upon receipt of any evidence that the Trustee may
reasonably require in relation to the death and the estate of the Annuitant. By
giving notice in writing to the Trustee, the Annuitant’s Spouse may, at any time
before the payment, waive his entitlement to receive the lump-sum payment and
may, before the death of the Annuitant’s or the conversion of the Plan, revoke
such waiver.
7. COMMUTATION OF THE PLAN - The Annuitant may at any time, but
before the maturity date prescribed or required for in paragraph 146(2) (b.4) of
the Act, convert the balance of the Plan into a life annuity guaranteed by an
insurer and established for the duration of the life of the Annuitant or for the
duration of the life of the Annuitant and of the Annuitant’s Spouse provided that
the term agreed to for the investments has expired. The said life annuity shall
fulfil all the requirements of subsection 146(1) of the Act. The periodic amounts
paid as an annuity shall be equal, unless such amounts are adjusted by reason
of a rate or index provided for in the annuity contract and permitted under
subparagraphs 146(3)(b)(iii) to (v) of the Act, or by reason of the partition of the
benefits of the Annuitant between the Annuitant and the Annuitant’s Spouse, as
per the election provided for in subparagraph three of the first paragraph of
section 93 of the Pension Plans Act or by reason of separation from bed and
board, divorce, nullity of marriage, by the dissolution or nullity of their civil union
or by cessation of the conjugal relationship in the cases and under the conditions
prescribed in section 89 of the Pension Plans Act.
The payment of a pension may be guaranteed for a given period extending after
the death of the Annuitant but must terminate no later than the day preceding the
day on which the Annuitant would have reached 90 years of age, the whole in
accordance with the provisions of section 146 of the Act.
The Annuitant may only convert the balance of the Plan into an pension
guaranteed by an insurer if the annuity contract provides that, at the death of the
Annuitant, his or her Spouse shall be entitled to a life annuity equal to at least
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60% of the amount of the pension to which the Annuitant was entitled before his
or her death.
12. TRUSTEE’S RIGHTS –
Upon written notice to the Trustee, the Annuitant’s Spouse may, at any time
before the entire balance of the Plan is converted into an annuity, waive his or
her right to the annuity as described in the preceding section, or, where
applicable, revoke said waiver.
hereunder, in conformity with the current rates, of which the Annuitant hereby
acknowledges to have taken notice. The Trustee may, from time to time, as it
wishes, modify the aforementioned rates with 30 days notice to the Annuitant.
Moreover, the Trustee (which includes for greater certainty, the Agent or its
mandatary, as applicable) shall be entitled to reimbursement (i) for all taxes or
interest charges imposed upon it in its capacity as trustee of the Plan (other
than those taxes, penalties and interest that the Trustee is liable for under the
Act and that cannot be paid out of the property of the Plan), and (ii) for all
reasonable disbursements (including honoraria and legal fees and other
professional fees) that it incurs in carrying out its duties and other powers
hereunder. In addition, the Trustee has the right to reasonable fees for all
services that it provides out of the ordinary in connection with the present
Declaration of Trust, where the amount of such fees shall be proportional to
the time and effort expended.
Except for the cases provided for by, and in the conditions prescribed in, the
Pension Plans Act, the Annuitant’s Spouse ceases to be entitled to the benefits
provided for in that present section or section 6 hereof, upon divorce, separation
from bed and board, or nullity of marriage, dissolution or nullity of civil union or, in
the case of an unmarried Spouse, by cessation of the conjugal relationship.
8. TRANSFERT OF THE FUNDS – The Annuitant may transfer, in whole or
in part, the balance of the Plan to another pension plan referred to in paragraph
1, 2, 2.1, 2.2, 3.1, 4 or 5 of the section 28 of the regulation made under the
Pension Plans Act, at any time after the expiry of the term agreed to for the
investments. The transfer shall be made by cheque or by any other means
deemed acceptable by the parties, within 30 days of the receipt of a written
request by the Annuitant to this effect.
9.
REFUNDS –
a) The Annuitant may withdraw all or part, or receive a series of payments, out
of the market value of the balance of the Plan where a physician certifies, to the
Trustee’s satisfaction, that the Annuitant’s mental or physical disability reduces
his or her life expectancy.
b) The Trustee shall, upon the Annuitant’s written request, pay an amount
described in paragraph 146(2)(c.1) of the Act, and, where applicable, under the
provision of the Tax Acts, which amount shall not exceed the amount paid into
the Plan or paid under the said Plan.
c) If he has not resided in Canada since at least two years, the Annuitant may,
unless the agreed term of the investments did not expired, require that the total
balance of the Plan be paid to him in a lump sum.
d) Subject to the date of expiry of the investments, the entire balance of the
Plan may be paid in a lump-sum payment to an annuitant who is at least 65
years of age at the end of the year preceding his or her application, if the total of
the sums accumulated in his or her name in the following plans does not exceed
40% of the Maximum Pensionable Earnings determined in accordance with the
Act respecting the Quebec Pension Plan for the year during which the Annuitant
applies for the payment:

defined contribution pension plans;
 defined benefit or defined benefit-defined contribution pension plans in
application of provisions similar to those of a defined contribution plan;

life income funds;

locked-in retirement accounts;

locked-in RRSP (registered retirement savings plans of which the balance
must be converted into a life annuity);

the voluntary retirement savings plans governed by the Voluntary Retirement
Savings Plans Act.
10. SEIZABLE PORTION - Pursuant to a judgment rendered in favor of the
Annuitant’s Spouse granting a seizure for unpaid alimony, the seizable part, not
exceeding 50% of the balance of the Plan at the time of the seizure, is payable
immediately, in only one payment, in spite of the term of the investments. The
Trustee shall not be responsible for any loss or depreciation in the value of the
investments of the LIRA.
11. RESPONSABILITIE OF THE FINANCIAL INSTITUTION - If an income
exceeding the maximum amount payable during a fiscal year is paid to the
Annuitant contrary to the provisions of the present Declaration of Trust or the
regulation made under the Pension Plans Act, the Annuitant may, unless this
payment is attributable to a false declaration by him, require that the financial
institution pay him, as a penalty, a sum equal to the surplus of the income paid.
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a) The Trustee shall be entitled to remuneration for services rendered
b) Except where prohibited by the Tax Acts, the Trustee shall deduct from
the Plan’s assets all honoraria, disbursements, legal fees and other
reimbursements to which it is entitled pursuant to the present Declaration of
Trust, in the manner it sees fit, and it may, at its discretion, sell Plan assets for
the purpose of effectuating such payment, or to make up all debit balances.
For this purpose, the Annuitant shall appoint, irrevocably, the Trustee as his
mandatary with all the powers necessary to give full effect to the present
provision.
c) Notwithstanding all other provisions hereof (but except towards the tax
authorities, as may be prescribed by the Tax Acts), the Trustee (which
includes, for greater certainty, the Agent or its mandatary, as applicable), shall
not be held personally liable for any tax or interest charge or any penalty (other
than those taxes, penalties and interest that the Trustee is liable for under the
Act and that cannot be paid out of the property of the Plan) that may be
charged relating to the Plan under the authority of the Tax Acts (be it by way of
assessment, reassessment or otherwise) or for any other charge collected or
charged by a government authority relating to the Plan, or for any taxes,
penalties, interest charges, losses or damages suffered or payable by the
Plan, the Annuitant or by any other person in relation to the Plan or as part of
the Plan, either resulting from the acquisition, the ownership or transfer of any
investment, or as a result of any payment made from the Plan in conformity
with the provisions hereof, or because the Trustee had conformed to or had
refused to conform to the instructions that were given to him or otherwise,
unless it results from gross negligence on the part of the Trustee or its bad
faith. The Trustee may, at its entire discretion, realize Plan assets for the
purpose of paying any amount of this kind. For this purpose, the Annuitant
shall appoint, irrevocably, the Trustee as his mandatary with all the powers
necessary to give full effect to the present provision. The Annuitant agrees to
hold harmless the Trustee in respect of any loss of damage that the Trustee
may suffer in connection with the above. Except where prohibited by a Tax Act
and notwithstanding any other provision of the present Declaration of Trust,
the Trustee is entitled to deduct from any other account held by the Annuitant
with the Trustee (or any of its affiliates) those taxes, interest and penalties
imposed on the Trustee by a Tax Act and that are not reimbursable to the
Trustee from the property of the Plan under a Tax Act.
d) The Trustee shall furthermore not be responsible for any act or omission
in relation to the Plan, except in case of gross negligence on its part. Without
limiting the generality of the foregoing, the Annuitant shall not be able to
submit a claim against the Trustee as a result of losses, abatements,
damages, fees, costs, taxes, assessments, rights, interest charges,
applications, fines, claims, penalties, honoraria, or disbursement incurred
directly or indirectly as part of the administration of the Plan or of the Plan
assets or in the exercise of its duties pursuant hereto (the “responsibilities”),
with the exception of responsibilities arising directly from gross negligence on
the part of the Trustee. For greater certainty, the provisions of Title Seven of
Book Four of the Civil Code of Québec shall not apply to the relations between
the Trustee and Annuitant.
e) In particular, the Annuitant hereby expressly acknowledges that,
notwithstanding all other provisions contained herein, the Trustee shall not in
any way be liable for the acts or for the failure to act of the Agent or any other
mandatary appointed pursuant to the present Declaration of Trust, as such the
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Agent or mandatary alone shall be held responsible for its acts or its failure to
act with regard to the Annuitant, which includes, without limitation, the case of
embezzlement by the aforementioned Agent or mandatary, even in the case of
the insolvency or bankruptcy of the aforementioned Agent or mandatary.
The Annuitant also acknowledges that the Plan assets may be held in
whole or in part in foreign currencies. The Trustee, the Agent or their
nominees will be at full liberty to convert at their will the Plan assets or any part
thereof in foreign currencies, or vice versa in Canadian dollars. The Trustee
will not incur any liability whatsoever in respect of any risk, cost or damages
that may result from any such foreign exchange transaction, or that could
result from exchange rates fluctuations.
f)
g) The Annuitant, his heirs and personal representatives and each
beneficiary pursuant to the Plan named by the Annuitant hereby commit
themselves to indemnify and hold harmless the Trustee, as well as its related
or affiliated companies and each of their respective officers, directors,
custodians and respective employees, for all liability or damages (including all
reasonable fees incurred for their defense) of any nature that may be at any
time incurred by any one of them or presented against them by any person,
including, without limitation, any regulatory body or any governmental authority
and that may concern the Plan directly or indirectly.
Inasmuch as the Trustee or another appointed person pursuant to the present
paragraph has the right to present a claim for compensation pursuant to the
present Declaration of Trust, the Trustee may, at its entire discretion, realize
parts of the Plan assets for the purpose of paying the amount of the claim for
compensation out of the Plan assets. For this purpose, the Annuitant shall
appoint, irrevocably, the Trustee as his mandatary with all the powers
necessary to give full effect to this clause. If the Plan assets are not sufficient
to cover the claim for compensation, or if the claim for compensation is made
once the Plan has ceased to exist, the Annuitant, as well as the other
indemnifying parties mentioned above, shall accept to personally pay the
amount of the claim for compensation.
h) The Trustee shall have the right to rely upon and to act in conformity with
all instruments, certificates, notices or any other signed documents, presented
to and judged to be authentic by the Trustee.
When the Plan terminates and the entirety of the Plan assets are paid out,
the Trustee shall be liberated from all responsibilities or obligations in
connection with the Plan, except towards the tax authorities, as may be
prescribed by the Tax Acts. The Annuitant agrees to hold harmless the
Trustee (which includes, for greater certainty, the Agent or its representatives,
as applicable) in respect of any loss of damage that the Trustee may suffer in
connection with the above.
i)
13. CUSTODY OF SECURITIES – The Trustee may keep any investment in
the Plan, in any place to be determined by the Trustee or the Agent, in the
Trustee’s own name, the Agent’s name or under any other name on behalf of the
Trustee. Unless the Annuitant has sent his written instructions, at least 48 hours
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prior to any meeting called, the Trustee may, without however being bound to do
so, exercise any voting rights or give proxies to vote with respect to securities
held for the Plan.
14. AMENDMENTS – When deemed appropriate, the Trustee may amend
the provisions of the Plan, on condition that the Plan complies at all times with
the provisions of the Tax Acts. Such modifications shall take effect on the
thirtieth (30th) day after the sending of a notice of modification to the Annuitant.
The Trustee may resign its duties and be released from all other responsibility
and liability under the Plan upon a thirty (30)-day written notice to the
Annuitant. The Trustee may also, but is not obligated to, appoint as its
successor, pursuant to the Plan, any qualified company to act as a trustee
under the law. In the event of such an appointment, on the date that the
appointment takes effect, the Trustee shall transfer all the information, funds,
securities or shares of the Plan to its successor. Beginning from the date of its
appointment, the successor shall assume all duties and responsibilities of the
Trustee and the latter shall be released from all responsibility and liability as
Trustee pursuant to the Plan.
Subject to the requirements of the Act, any company resulting from a merger
or a reorganization to which the Trustee is a party or that acquires the totality
or the quasi-totality of the trust activities of the Trustee, shall become the
successor Trustee pursuant hereto, without it being necessary to execute
another act or document, except for notices intended for the Agent and the
Annuitant respectively.
15. NOTICE – Any notice given to the Trustee hereunder, if it is sent by mail,
shall be sent by prepaid postage, addressed to its principal office and shall be
deemed to have been given on the day that it is received by the Trustee. Any
notice or statement that the Trustee must forward to the Annuitant shall be
mailed to the Annuitant at the address indicated on the application for this Plan
or at any subsequent notice of change of address and any such notice shall be
deemed to have been given on the third working day following the day of
mailing.
16. PERSONAL INFORMATION – The Annuitant consents to the use by the
Trustee and by the Agent of the personal information that they may possess
regarding the Annuitant, as well as to the disclosure of the above-mentioned
personal information by mail or electronic transmission, when required, with
regard to the administration of the Plan or when required by law.
17. INTERPRETATION – The use of masculine references herein includes
the feminine. The present Declaration of Trust shall be governed by, and
interpreted in accordance with, the laws of the Province of Québec.
18. LANGUAGE - The parties hereto have required that the present
Declaration of Trust and all documents and notices resulting herefrom be
drawn up in English. Les parties aux présentes ont exigés que la présente
convention ainsi que tous les documents et avis qui s’y rattachent et/ou qui en
découleront soient rédigés en la langue anglaise.
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