The appeal concerned whether pension contributions refunded under Quebec public sector retirement legislation retained their exempt status after direct transfer into a self-directed RRSP following termination of employment and before bankruptcy.
The Court held that the phrase “sums paid or reimbursed” in s. 222 of the Act respecting the Government and Public Employees Retirement Plan protects the right to payment or reimbursement, not funds once withdrawn and converted into a different contractual investment vehicle.
It rejected the argument that exempt status followed the source of the funds into the RRSP through investment, reinvestment, or real subrogation absent clear legislative language.
The RRSP was therefore seizable in bankruptcy and the appeal was dismissed with costs.
