RRSP creditor protection

Question: I saw an article recently spelling out the details of the new creditor protection for all RRSPs but can not find it now. I believe it detailed the erosion of existing protection for life insurance creditor protection and would like to re read it.

Can you tell me where to find the details of the protection limitations of bank and trust company self-directed RRSPs? … K.G.H., Saskatoon, Sask.


The whole issue of RRSP creditor protection is a dog’s breakfast. The issue involves whether retirement plan savings should be subject to seizure by creditors in the event the plan owner runs into financial problems.

Insurance company plans are the most secure in this regard, however there have been conflicting court rulings on just how far the protection extends. Protection for ordinary RRSPs comes under provincial jurisdiction, so there is a crazy-quilt of rules across the country.

Since you live in Saskatoon, you are probably referring to the Saskatchewan creditor-protection initiative that was approved in 2002. There’s a paragraph on this on p. 187 of my 2003 Buyer’s Guide to RRSPs. It notes that this is the first attempt in Cana to protect all registered plans from creditors. However, the savings are only secure while they are in the plan; as soon as the money is withdrawn it is subject to seizure. – G.P.