Payments to the Annuitant. We will make payments from the Fund to you, and where you have so elected as provided in paragraph 13, to your spouse after your death should you die while the Fund continues to exist in which case your spouse has become the Annuitant of the Fund, in each year, commencing not later than the calendar year following the year in which this arrangement is entered into, in accordance with the requirements as set forth by Subsection 146.3(1) of the Act. At the end of the year in which the last payment is made, a payment equal to the value, if any, of the Fund at that time will be made. The amount and frequency of the payment or payments referred to in this paragraph 5 in respect of any year shall be as specified in writing by you on the Application or on such other form as we may provide for this purpose. You may change the amount and frequency of the said payment or payments or request additional payments by instructing us, in writing on such form as may be provided for this purpose, such change to be effective in the next calendar year. If you do not specify the payment or payments to be made in a year or if the payment or payments specified are less than the minimum amount for a year, we will make such payment or payments as we deem necessary so that the minimum amount for that year is paid to you in accordance with the Applicable Tax Legislation. An election made by you to base the minimum amount on the age of your spouse as provided above is thereafter binding and cannot be changed, revoked or amended after the first payment has been made from the fund even if the spouse dies or if you and your spouse cease to be married. We shall not borrow or obtain otherwise than from cash or securities of the Fund the funds necessary to make such payments. No payments shall be made in specie. We shall withhold from any payment any income tax or other amount required to be withheld by the Applicable Tax Legislation. Payments to you shall be made by the mailing of a cheque or electronic funds transfer payable to you at the address indicated in the Application or a such other address as may be furnished to us. The mailing of such cheque or electronic funds transfer shall be a full and complete discharge of our obligation to make such payment (plus any tax required to be and in fact deducted and withheld there from and remitted to the proper taxing authority) unless such cheque is not honoured when presented for payment.
Payments to the Annuitant. The Plan provides for payment to the Annuitant of a retirement income in accordance with paragraph 146(2) (b.1) of the Income Tax Act (Can- ada). In addition, the Plan does not provide for periodic payments in a year under an annuity after the death of the first annuitant, the total of which exceeds the total of the payments under the annuity in a year before that death.
