The February 23, 2005 Federal Budget proposed the elimination of the 30% limit with respect to the foreign property content held in plans such as Registered Pension Plans and Registered Retirement Savings Plans. In light of a recent document released by the Canada Revenue Agency, plan administrators who up until now have postponed increasing foreign property content out of concern that penalty taxes could apply if the proposals are not ultimately enacted into law, may now feel much more comfortable in proceeding.

type Pension Alert - June 2005