On November 2, 2008, Premier Gordon Campbell announced that the provincial government will be acting on the Canadian Bar Association BC Branch (CBABC) recommendation that RRSPs and similar savings instruments be protected from seizure by creditors. The CBABC has been actively lobbying for this legislative change not only because it removes an anomaly in the law, but because the majority of lawyers and other professionals, as well as the self-employed and small-business owners, rely on their retirement savings and do not have access to protected pension plans. Here is the excerpt from the news release:

The Province will act to protect from creditors RRSP investments that are made with banks, just as they are protected now with insurance companies. The Province will introduce legislation to exempt RRSPs and similar prescribed plans from seizure by creditors. Currently, investments with insurance companies are protected from seizure. This will provide the same protection for RRSPs invested in banks. The current law is unfair, as pension and insurance products that are essentially identical to RRSPs are exempt from seizure. It will also end the inconsistent treatment of RRSPs under provincial law and federal law.

CBABC News Release
November 3, 2008 CBABC Applauds Government Protection of RRSPs

Government of British Columbia News Release
November 1, 2008

CBABC Submissions
September 15, 2008 2009 Provincial Budget Submission
November 2005 Draft Legislation Submission
November 2008 Update to 2005 Submission

CBABC Resolutions
October 15, 2004 Executive Committee
September 24, 2005 Provincial Council

Feedback from Members and Others
Guy Joubert, CBA National President
Frits Verhoeven, QC

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[posted November 3, 2008]