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10.3 Redemptions


Lump sum redemptions made in accordance with sections 30 or 137 of the SRCA and section 138 of the MRCA are taxable.  However that component of a lump sum redemption to a former employee under section 137 of the SRCA that is made in substitution of incapacity payments beyond age 65 is exempt from income tax.  See chapter 11 for further information on redemptions.

Lump sum redemptions are also taxable.