16 other possible ways to use your RRSP

Retiring or buying your first home is not the only way you can use your Fonds RRSP savings.

Discover the 16 redemption possibilities!

Severe and prolonged disability (physical or mental) resulting in permanent unfitness for work
REQUIREMENTS REQUIRED DOCUMENTS
The shareholder is less than 60 years old and has become incapable of pursuing any substantially gainful occupation
OR
The shareholder is 60 years or older and has become incapable of pursuing the substantially gainful occupation held at the time the shareholder ceased working due to disability.

The Fonds “Redemption Request - Severe ans prolonged disability”
AND
A copy of one of the following documents attesting the severe and prolonged disability:

Notice of Acceptance by the Québec Pension Board as the beneficiary of a disability pension
OR
“Redemption Request – Severe Long-Term Disability” form and a declaration from a physician attesting to the severe and prolonged disability, which results in permanent unfitness for work.

ELIGIBLE SHARES
All Shares.
Death
REQUIREMENTS REQUIRED DOCUMENTS
The person to whom the Shares were assigned by succession must submit a written request for redemption. Written request
AND
Proof of the shareholder’s death (attestation of death by a physician, death certificate issued by a thanatologist or a copy of the death certificate issued by the government)
AND
the original or true copy (certified photocopy) of the will* and marriage contract if it contains a testamentary provision, or, in the absence of the above-mentioned documents, a sworn declaration of transmission by death
AND
document showing testamentary search with the Registre des dispositions testamentaires et des mandats du Québec.
* Probate of the will is required if it is a holograph will or a will made before witnesses.
ELIGIBLE SHARES

All Shares (cheque in the name of the estate or transfer to another registered plan*).
*To simplify the estate representative’s work, transfers to other financial institutions’ registered plans could be carried out through a Fonds de solidarité FTQ’s registered plan under the surviving spouse’s name.
Death of the person who contributed to a spousal RRSP
REQUIREMENTS REQUIRED DOCUMENTS
The shareholder who is beneficiary of a spousal RRSP may request the redemption of the Shares included in such RRSP, if the person who contributed to such spousal RRSP dies. Written request
AND
Proof of the death of the person who contributed to such RRSP (attestation of death by a physician, death certificate issued by a thanatologist or a copy of the death certificate issued by the government).
ELIGIBLE SHARES
All Shares.
Redemption within 60 days of the subscription
REQUIREMENTS REQUIRED DOCUMENTS
The request made by the person who acquired Shares from the Fund must be received within 60 days of the subscription. However, if the subscription is through payroll deduction, the request must be received within 60 days of the first deduction. The Fonds' “Redemption Request – 60-day Redemption” form.
ELIGIBLE SHARES
All eligible Shares.
Redemption of pension credits for years of past service or pension benefit improvement
REQUIREMENTS REQUIRED DOCUMENTS

The shareholder must have received an offer to improve pension plan benefits if the offer is not already mentioned in the plan and is time-limited
OR
must have received an offer from the employer when enrolling in a new plan or changing jobs or employee status to improve the benefits of a pension plan. This offer must be time-limited
AND
must show that the proceeds of the purchase will be used to acquire pension credits for years of past service or to improve the pension payable by a pension plan
AND
must have liquidated or used all his redeemable investments (including RRSPs and LIRAs), the purchase of the Shares being the last resort.

The Fonds' “Redemption Request – Pension Credits” form, including acceptance by the plan administrator
AND
a copy of the redemption offer for past years of service
AND
proof that all redeemable investments have been liquidated or that they are neither redeemable nor transferable.

ELIGIBLE SHARES
All Shares held for at least two years.
SUBSEQUENT ACQUISITION OF SHARES
At any time.
PAYMENT TERMS AND CONDITIONS

This criterion can only be invoked once by the shareholder.
The cheque is issued to the pension fund and direct transfer to the pension plans is permitted. Total authorizations under this criterion cannot exceed 10% of the annual limit set for the Fond by the Québec Taxation Act.

Serious and irreversible illness
“Serious and irreversible illness” means an illness which has reached the final stage.
REQUIREMENTS REQUIRED DOCUMENTS
The shareholder or his or her spouse or dependent child must have a serious and irreversible illness. The Fonds’ “Redemption Request – Serious and irreversible Illness” form, including the declaration of the attending physician.
ELIGIBLE SHARES
All Shares held.
SUBSEQUENT ACQUISITION OF SHARES
Impossible or after one year, if the shareholder invoked this criterion for his or her spouse or dependent child.
PAYMENT TERMS AND CONDITIONS
All Shares held (a maximum of two disbursements).
The transfer to another plan is permitted.
Loss pertaining to principal residence
REQUIREMENTS REQUIRED DOCUMENTS

The shareholder must show there was a loss* without indemnification or with partial indemnification**
AND
must declare financial inability to pay for the consequences of the loss
AND
must have liquidated all redeemable investments (including any other RRSP), the purchase of the Shares being the last resort.

* A " loss " means damage to the principal residence due to a fire, water damage, a natural catastrophe, a breakage or defect of security equipment causing damages , or a fault or defect that is so serious it endangers the health or safety of the occupants or the foundation or structure of the residence.

** The application must have been received within one year of the loss.

The Fonds’ “Redemption Request – Loss Involving Principal Residence” form comprised of the Section"Shareholder'Solemn Declaration"attesting the financial incapacity to pay the consequences of the loss
AND
proof of the loss
AND
proof of partial indemnification or absence of indemnification
AND
proof of the costs related to the loss
AND
proof that all redeemable investments have been liquidated or cannot be redeemed.
ELIGIBLE SHARES
All the Shares.
SUBSEQUENT ACQUISITION OF SHARES
One year after the Fund’s purchase.
PAYMENT TERMS AND CONDITIONS
A net payment equal to the amount required to cover a substantial part of the cost to replace the asset.
Cheque payable to the shareholder and the creditor (if applicable).
Ineligibility for tax credits
REQUIREMENTS REQUIRED DOCUMENTS
The shareholder must have purchased Shares without being entitled to Québec and federal tax credits, unless the credit was refused because the amount contributed exceeded the maximum allowed under applicable tax legislation.

The Fonds' "Ineligibility for Tax Credits" form
AND
proof that the tax credits were claimed and refused by the Québec and Federal Governments
OR
proof that the shareholder is not eligible for tax credits.

ELIGIBLE SHARES
All Shares purchased while the shareholder was not eligible for tax credits.
SUBSEQUENT ACQUISITION OF SHARES
Once the shareholder is eligible for tax credits.
PAYMENT TERMS AND CONDITIONS
A single payment equal to the value of the eligible Shares. The disbursement is made for the value of the Shares at the time they were acquired. Transfer to another plan is permitted.
Emigration from Canada
REQUIREMENTS REQUIRED DOCUMENTS
The shareholder, his or her spouse and dependent children must have permanently emigrated from Canada
AND
have permanently left their residence and employment.
The Fonds’ “Redemption Request – Emigration from Canada” form, including the section entitled “Shareholder’s Solemn Declaration” stating that the family has permanently emigrated from Canada
AND
proof of employment in the host country, a work permit or proof of citizenship
AND
proof of residence in the host country.
ELIGIBLE SHARES
All Shares held for at least two years.
SUBSEQUENT ACQUISITION OF SHARES
Impossible.
PAYMENT TERMS AND CONDITIONS
One payment once all the Shares become eligible. Transfer to another plan permitted.
Capital injection to maintain jobs in a business in operation for more than one year and in financial difficulty
REQUIREMENTS REQUIRED DOCUMENTS
The shareholder must show that the business is duly constituted
AND
must show that he or she is the owner of the business (alone or with others) and participates in the decision-making process
AND
must show that the business is a going concern
AND
show that the business is in financial difficulty
AND
show that the injection of capital will maintain at least one full-time permanent job.
The Fonds’ “Redemption Request – Capital Injection into a Business Acquired more than a Year Ago and in Financial Difficulty” form
AND
the declaration of registration or certificate of incorporation
AND
financial statements for two complete fiscal years and the interim financial statements for the current period
AND
proof of maintenance of a full-time permanent job.
If the job maintained is the shareholder’s:
  • an income tax return and notice of assessment.
If the job maintained is not the shareholder’s, supply one of the following proofs:
  • monthly remittances to the Québec and federal Governments;
  • pay slips.
ELIGIBLE SHARES
All Shares held for at least two years.
SUBSEQUENT ACQUISITION OF SHARES
Two years after the Fonds’ purchase.
PAYMENT TERMS AND CONDITIONS
One payment equal to the value of the eligible Shares. This criterion can only be invoked once by the shareholder.
Extraordinary and unexpected expense necessary for the health of the shareholder, the shareholder's spouse or a dependent
REQUIREMENTS REQUIRED DOCUMENTS
The shareholder must show that the expense is unexpected and necessary for health reasons and, if applicable, that the person involved is a spouse or a dependant
AND
must show financial inability to pay the expense
AND
must have liquidated or used all redeemable investments (including any other RRSP), the purchase of the Shares being the last resort.
The Fonds’ “Redemption Request – Extraordinary and Unexpected Expense Necessary for Health” form which includes a section called "Shareholder's Solemn Declaration" attesting financial incapacity to pay the unexxpected expense
AND
proof of confirmation from a health professional attesting to the necessity of the care
AND
proof of absence of indemnification or partial indemnification
AND
proof of the charges related to the extraordinary expense
AND
proof that all redeemable investments have been liquidated or cannot be redeemed.
ELIGIBLE SHARES
All the Shares.
SUBSEQUENT ACQUISITION OF SHARES
One year after the Fonds’ purchase.
PAYMENT TERMS AND CONDITIONS
A net payment equal to the amount required to pay a substantial portion of the expense.
Cheque payable jointly to the shareholder and the creditor (if applicable).
Decrease in net income of shareholder or his or her spouse by 20% or more for a minimum period of two consecutive months
due to the following circumstances:

  • loss of employment or end of sole contract;
  • involuntary reduction in regular work hours;
  • dissolution of a union;
  • decrease or termination of benefits (the CSST, the SAAQ or the Employment Insurance).

REQUIREMENTS REQUIRED DOCUMENTS

The shareholder or his or her spouse must show the reason for the decrease in income (loss of employment or end of sole contract, involuntary reduction in regular work hours or dissolution of a union or decrease or end of shareholder’s benefits)
AND
must show that the net income has decreased by 20% or more for a minimum consecutive period of two months
AND
must have liquidated all redeemable investments (including any other RRSP), the purchase of the Shares being the last resort
AND
in the case of the loss of employment or the end of the sole contract, show that the shareholder or his or her spouse worked at the employment or sole contract for a minimum of 28 hours per week for a least two months.

The Fonds’ “Redemption Request – Reduction in Net Income” form
AND
proof of the decrease in shareholder’s net income for the period of two consecutive months and proof of net income for the month preceding the decrease
OR
if the decrease in net income involves the shareholder’s spouse, proof of the decrease in net family income for the period of two consecutive months and proof of net family income for the month preceding the decrease
AND
proof that all other redeemable investments have been liquidated or cannot be redeemed
AND
For loss of employment or end of the sole contract:
proof of loss of employment or end of sole contract at which the shareholder or his or her spouse worked for a minimum of 28 hours per week.
For involuntary reduction in regular work hours:
confirmation from the employer of the involuntary reduction in regular hours for a minimum of two consecutive months.
For the dissolution of a union:
proof of the dissolution of a union which has occurred within a minimum of two months.
For a reduction or cessation of benefits:
proof of the reduction or cessation of in benefits for a minimum of two consecutive months.
ELIGIBLE SHARES
All the Shares.

SUBSEQUENT ACQUISITION OF SHARES
One year after the Fonds’ purchase.

PAYMENT TERMS AND CONDITIONS

Payments not exceeding $5,000 net each.
A minimum two-month interval is required between payments.
OR
A single payment representing the total account value as long as its value is lower than $10 000.
Shares purchased after the involuntary reduction in net income cannot be redeemed under this criterion.

Decrease in gross income of shareholder or his or her spouse by 30 % or more for a minimum period of two consecutive months caused by a temporary disability
REQUIREMENTS REQUIRED DOCUMENTS

The shareholder or his or her spouse must be in position of decreasing income caused by a temporary disability
AND
must show that the gross income has decrease by 30 % or more for a minimum consecutive period of two consecutive months.
AND
must have liquidated or used all redeemable investments (including any other RRSP), the purchase of the Shares being the last resort.

The Fonds’ “Redemption Request Reduction in Gross Income” form
AND
a medical certificate attesting to the disability for a minimum period of two consecutive months
AND
proof of the decrease in shareholder's gross income for the period of two consecutive months ans proof ao gross income for the month preceding the decrease
OR
Written confirmation from the shareholder's or the shareholder's spouse's employer or insurer attesting to the payment of disability benefits caused by 30 % gross incomedecrease fo a minimum consecutive period of two consecutive months
AND
if the decrease in gross incomeconcerns the shareholder'spouse, provide a proof of gross family income from the month preceding the decrease
AND
Proof that all other redeemable investments have been liquidated or cannot be redeemed.

ELIGIBLE SHARES
All Shares held for at least two years.
SUBSEQUENT ACQUISITION OF SHARES
One year after the Fonds’ purchase.
PAYMENT TERMS AND CONDITIONS

A maximum of two payments of $5,000 net each in a minimum two month interval between each payment
OR
a single payment representing the total account value as long as its value is lower $10,000.
Shares purchased after the temporary disability cannot be redeemed under this criterion.

Expense necessary when a shareholder or his or her spouse acts as a natural caregiver for a family member
REQUIREMENTS REQUIRED DOCUMENTS
The shareholder must show that the expense is necessary and that the shareholder or his or her spouse acts as a natural caregiver for a family member
AND
must show that the person cared for is at least 70 years of age or that he or she has a serious mental and/or physical handicap.
AND
must show that the net family income has decreased by 20% or more for a minimum of two consecutive months
AND
must have liquidated or used all redeemable investments (including any other RRSP), the purchase of the Shares being the last resort.
The Fonds’ “Redemption Request – Expense Necessary When a Shareholder or His or Her Spouse Acts as a Natural Caregiver for a Family Member” form, including the section entitled “Shareholder’s Solemn Declaration” stating that he or his or her spouse must act as a natural caregiver for a family member
AND
proof that the person cared for is at least 70 years of age
OR
proof from the attending physician that the person cared for has a serious mental and/or physical handicap
AND
proof of the net family income for the period in question and proof of the net family income before the decrease
AND
proof that the redeemable investments have been liquidated or cannot be liquidated.
ELIGIBLE SHARES
All Shares held for at least two years.
SUBSEQUENT ACQUISITION OF SHARES
One year after the Fonds’ purchase.
PAYMENT TERMS AND CONDITIONS
A single payment corresponding to the value of the eligible Shares.
This criterion can only be invoked once by the shareholder within 5 years, as of the disbursement date.
Involuntary reduction of 20% or more in net family income derived from self-employment or a business for a minimum period of six months consecutive
REQUIREMENTS REQUIRED DOCUMENTS
The shareholder or his or her spouse must be a self-employed worker or owner of a business
AND
must show that the reduction in family income is involuntary and not cyclical
AND
must show that the net family income after the reduction in question has decreased by 20% or more for a minimum period of six consecutive months
AND
must have liquidated all redeemable investments (including any other RRSP), the purchase of the Shares being the last resort.
The Fonds’ “Redemption Request – Involuntary Reduction in net Family Income derived from Self‑Employment or a Business for a minimum of six consecutive months” form
AND
proof of net family income for the same period last year and for the last six months
AND
proof that all other redeemable investments have been liquidated or cannot be redeemed
AND
For self-employed workers:
confirmation from clients of cancellation, termination or reduction in the number of contracts
OR
For business owners:
proof of ownership (declaration of registration or certificate of incorporation)
AND
financial statements for the current and previous fiscal year.
ELIGIBLE SHARES
All the Shares
SUBSEQUENT ACQUISITION OF SHARES
One year after the Fonds’ purchase.
PAYMENT TERMS AND CONDITIONS
Payments not exceeding $10,000 net each.
A minimum six-month interval is required between each payment.
Shares purchased after the involuntary reduction in family income cannot be redeemed under this criterion.
Recourse of a creditor that will result in the interruption of service or the seizure
Applicable of the following property:
  • principal residence;
  • one or two automobiles;
  • public utilities; or
  • salary

REQUIREMENTS REQUIRED DOCUMENTS
The shareholder must not qualify for any other criterion of the Purchase-by- Agreement Policy
AND
show that the recourse jeopardizes the principal residence, one or two automobiles, a public utility or salary
AND
the shareholder must have liquidated all redeemable investments (including any other RRSP), the purchase of the Shares being the last resort.
The Fonds’ “Redemption Request – Creditor’s Recourse against Essential Property or Service” form
AND
a statement by the shareholder explaining the reasons underlying the recourse and confirming that he has the necessary amounts to pay the balance if the redemption of the Shares is not sufficient to avoid the recourse
AND
proof that all redeemable investments have been liquidated or cannot be redeemed
AND
proof of the recourse against the following essential property or services:

For the residence:
final notice from the hypothecary creditor or prior notice to exercise a hypothecary right or eviction notice from the landlord.

For 1 or 2 automobiles:
notice of loss of benefit of a term or repossession notice.

For public utility:
notice of service interruption.

For salary:
formal demand for payment from a government or a judgment against the shareholder ordering the payment of a sum of money.

ELIGIBLE SHARES
All the Shares
SUBSEQUENT ACQUISITION OF SHARES
One year after the Fonds’ purchase.
PAYMENT TERMS AND CONDITIONS
One net payment equal to the amount required to avoid execution of the recourse.
Joint cheque payable to the shareholder and the creditor.


Contact us