Registered Plans Directorate Newsletter, no. 95-6
October 26, 1995

Specimen Pension Plans - Speeding up the Process

In this newsletter, we, at Revenue Canada, outline the benefits of specimen plans. We explain how using this format for a pension plan can reduce your registration and amendment processing time, and we outline our administrative requirements for a specimen plan. If you, as administrator or consultant, market many pension plans with consistent terminology, this newsletter will interest you.

Specimen plans

A specimen plan is a base plan that uses identical wording for all employers, except for some permitted variables. Examples of permitted variables (in addition to the employer's identity and the effective date) are contribution and benefit rates, vesting schedules, and retirement ages. When an employer asks us to register a plan and indicates that it is based on an approved specimen plan, we can register the employer's plan as soon as we determine that it does match the specimen plan. You can set up a specimen plan for a plan text, a funding document, or both.

What to send us

To implement a specimen plan, submit a copy of the proposed plan or funding document and a covering letter requesting that we approve the plan. Provided we approve the plan after our review, we will send you an approval letter with an identification number. Refer to this number whenever you send us material about your plan. However, do not use this number to file an annual information return. For reporting purposes, we will assign a seven digit registration number to each plan that is based upon the specimen.

Registering plans based on an approved specimen plan

To register a pension plan based on an approved specimen plan, send us:

• a covering letter that identifies the specimen plan;
• a certified list of the selected variables for each plan;
• a completed Form T510, Application for Registration of a Pension Plan;
• any applicable board resolutions that establish the plan;
• other applicable documents that relate to the plan (e.g., reciprocal agreements); and
• a certified copy of the funding document if it is not a part of the approved specimen document.

We will confirm the permissible variables and register the plan.

Amending an approved specimen plan

You can alter, increase, or decrease the variables in a specimen plan. Such changes only affect plans already registered based on the specimen plan if the administrators of these plans, or the employers, adopt the new variables. For each of those plans, you have to send us a completed Form T920, Application for Acceptance of an Amendment to a Registered Pension Plan. We suggest that you use broad variables that will allow for flexibility in plan design to minimize the need for changes to the specimen plan.

If you decide to change the terms of your specimen plan other than the variables, or if you have to change the plan because of changes in legislation, we recommend that you send us a new specimen plan for approval.¹ We will assign a new identification number to the plan when we approve it. Clearly identify the areas that have changed from the original specimen so we can quickly process your application.

Amending a plan based on an approved specimen plan

You can only change permitted variables when you amend a plan that conforms to a specimen plan. If an amendment changes a section of the plan other than a permitted variable, the plan no longer conforms to the specimen plan. In such a case, you have to send us the entire certified plan document so we can review it as a customized plan.

Existing plans

You may want to change an existing registered plan to make it conform to an approved specimen plan from a particular date. To make this change, send us:

• a letter from the plan administrator that identifies the specimen plan and authorizes the change;
• any applicable amendments or board resolutions that bring about the change and identify the date of the change;
• a completed Form T920, Application for Acceptance of an Amendment to a Registered Pension Plan; and
• a certified list of the selected variables.

Pro forma wording

As an added service, we will review your proposed standard wording so you can be sure that we will accept your application to register your plans. This process applies only when you are developing pro forma text that can be used as standard paragraphs or sections of the document, or for the entire document. The wording can often be used as a model for sections of a plan throughout a province or jurisdiction. We target this service to consultants who market many plans in various jurisdictions and often use standardized wording.

We can quickly review material that you base on approved pro forma text. To ensure quick processing, send us:

• a covering letter that indicates that you have based the plan or parts of the plan on pro forma wording;
• a completed and certified Form T510 to register plan or Form T920 to amend a plan, as applicable;
• any applicable board resolutions that establish the plan or amendment;
• other applicable documents that relate to the plan (e.g., reciprocal agreements); and
• a certified copy of the plan text or amendment.

If you need more information, please write to:
Registered Plans Division
Revenue Canada
700 Industrial Avenue
Ottawa ON K1A 0L8

You can also call:
(613) 954-0419 (service in English)

Please note that, if there are changes in legislation that require more restrictive plan terms, you would have to amend all existing plans to conform as well. In any other case, existing plans would not be affected.