Illegal Unlocking Schemes Reported
Environment and Labour (to April 1/08)
November 19, 2001 3:54 PM
Nova Scotians are being warned not to fall for ads that
promise to convert locked-in pension funds into quick, tax-free
money.
Recent classified ads in a local newspaper and on a Web site
offer ways to provide advanced payments from locked-in pension
funds. Anyone considering these options is warned that such
payments are against the law in Nova Scotia and are subject to
applicable income taxes.
"We're concerned that people who may be tempted by these offers
won't even realize they are breaking the law," said Nancy
MacNeill-Smith, superintendent of pensions for the province.
"They need to understand they will be required to pay income
taxes on the funds they receive."
Ms. MacNeill-Smith added that the purpose of the legislation that
locks in pension funds is to ensure that those funds will be used
to provide retirement income by the owners.
The Canada Customs and Revenue Agency (CCRA) warns individuals
who respond to misleading advertisements that they risk losing
their retirement savings and tax benefits.
The CCRA also advises consulting with a knowledgeable tax advisor
before taking part in any scheme that promises a tax-free
withdrawal of pension or registered retirement savings plans
(RRSP) funds. Individuals, fund administrators and trustees can
contact the CCRA at 1-800-959-8281 for more information.
For more information about these schemes or other pension-related
issues, call the Pension Regulation division of the Department of
Environment and Labour at 902-424-8915.
FOR BROADCAST USE:
Nova Scotians are being warned not to fall for ads that
promise to convert locked-in pension funds into quick, tax-free
money.
Anyone considering these options is warned that such
payments are against the law in Nova Scotia and are subject to
applicable income taxes.
For information about these schemes or other pension-related
issues, call the Pension Regulation division of the Department of
Environment and Labour at 902-424-8915.
-30-
Contact: Valerie Bellefontaine
Department of Environment and Labour
902-424-2575
E-mail: bellefva@gov.ns.ca
kjd November 19, 2001 3:52 P.M.
Nova Scotians are being warned not to fall for ads that
promise to convert locked-in pension funds into quick, tax-free
money.
Recent classified ads in a local newspaper and on a Web site
offer ways to provide advanced payments from locked-in pension
funds. Anyone considering these options is warned that such
payments are against the law in Nova Scotia and are subject to
applicable income taxes.
"We're concerned that people who may be tempted by these offers
won't even realize they are breaking the law," said Nancy
MacNeill-Smith, superintendent of pensions for the province.
"They need to understand they will be required to pay income
taxes on the funds they receive."
Ms. MacNeill-Smith added that the purpose of the legislation that
locks in pension funds is to ensure that those funds will be used
to provide retirement income by the owners.
The Canada Customs and Revenue Agency (CCRA) warns individuals
who respond to misleading advertisements that they risk losing
their retirement savings and tax benefits.
The CCRA also advises consulting with a knowledgeable tax advisor
before taking part in any scheme that promises a tax-free
withdrawal of pension or registered retirement savings plans
(RRSP) funds. Individuals, fund administrators and trustees can
contact the CCRA at 1-800-959-8281 for more information.
For more information about these schemes or other pension-related
issues, call the Pension Regulation division of the Department of
Environment and Labour at 902-424-8915.
FOR BROADCAST USE:
Nova Scotians are being warned not to fall for ads that
promise to convert locked-in pension funds into quick, tax-free
money.
Anyone considering these options is warned that such
payments are against the law in Nova Scotia and are subject to
applicable income taxes.
For information about these schemes or other pension-related
issues, call the Pension Regulation division of the Department of
Environment and Labour at 902-424-8915.
-30-
Contact: Valerie Bellefontaine
Department of Environment and Labour
902-424-2575
E-mail: bellefva@gov.ns.ca
kjd November 19, 2001 3:52 P.M.