Which law does not govern group annuity contracts?

• A. Insurance legislation
• B. Income tax legislation
• C. CLHIA's Guideline G12 entitled Capital Accumulation Plans
• D. Relevant Pension Benefits Act

Answer: (D)

Group annuity contracts are insurance products issued by life insurers, so they’re regulated primarily by insurance legislation and the associated tax rules. The CLHIA Guideline G12 sets industry standards for Capital Accumulation Plans, which can include group retirement savings arrangements that use such products, but guidelines are not statutes. The Pension Benefits Act, however, governs registered pension plans—formal retirement plans sponsored by employers or pension funds—not individual insurance contracts like group annuities. Because a group annuity contract isn’t a pension plan, it doesn’t fall under pension benefits legislation. So the Relevant Pension Benefits Act does not govern group annuity contracts, while insurance legislation, tax rules, and Guideline G12 are relevant in this context. If the arrangement were truly a registered pension plan, the Pension Benefits Act would apply.