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Justice April 9, 2007 Minister Announces Debt Collection Changes to Retirement Savings The newly proclaimed Judgment Enforcement (Amendment) Act will now protect Registered Retirement Savings Plans (RRSPs) and other registered retirement funds from debt collection methods in the same way pension plans are currently protected. "We recognize the importance of saving for retirement and want to encourage people to invest as much as they can to ensure a prosperous retirement," said Minister of Justice, the Honourable Tom Osborne. Included in the exemptions are RRSPs, Registered Retirement Income Funds (RRIFs) and Deferred Profit Sharing Plans (DPSPs). Pensions were already exempt from debt collection. The Judgment Enforcement Act is a court-ordered mechanism through the Sherriff�s Office which enforces a judge�s decision. Under these amendments, if a judgment is ordered against a person to compensate for breach of contract, or a slip and fall on private property etc., the claimant cannot access retirement savings or pensions as part of a judgment. Newfoundland and Labrador is only the fourth Canadian province to introduce protection for registered plans. Prince Edward Island has protected RRSPs and RRIFs since 1992; Saskatchewan introduced comparable legislation in 2003; and Manitoba in 2006. These amendments do not affect the collection of child support payments through the Support Enforcement Agency. -30- Media contact: 2007 04 09 10:55 a.m.
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