Regulation - LGIC
ONTARIO REGULATION 416/07
Regulation Number(s):
Regulation 416/07
Instrument Type:
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Decision:
ONTARIO REGULATION 416/07
made under the
PENSION BENEFITS ACT
Made: July 25, 2007
Filed: July 27, 2007
Published on e-Laws: July 30, 2007
Printed in The Ontario Gazette: August 11, 2007
Amending Reg. 909 of R.R.O. 1990
made under the
PENSION BENEFITS ACT
Made: July 25, 2007
Filed: July 27, 2007
Published on e-Laws: July 30, 2007
Printed in The Ontario Gazette: August 11, 2007
Amending Reg. 909 of R.R.O. 1990
Further Information:
Ontario Regulation 416/07
Proposal Number:
07-MOF001
Posting Date:
August 2, 2007
Summary of Proposal:
This regulation amends Regulation 909 to introduce a new LIF and make other changes to the rules for locked-in accounts.
The new LIF provides account owners greater access to their locked-in funds and more flexibility in managing their retirement income by allowing the owner to unlock up to 25 per cent of the assets transferred into the fund upon purchase, make a maximum annual withdrawal based on the greater of the LIF withdrawal formula and investment returns in the previous fiscal year and extend the period for payouts from age 80 until age 90.
The regulation also eliminates the requirement for a LIF owner to purchase an annuity at age 80.
Additionally, the regulation introduces the right for a non-resident of Canada to withdraw the funds in their locked-in account once they have been a non-resident for twenty-four months, permits unlocked small account balances to be transferred directly to a non-locked-in RRSP or RRIF, and introduces consistent survivor benefit provisions for all locked-in accounts.
Finally, Regulation 909 has been updated to reflect recent changes to the federal Income Tax Act, the introduction of the new Ontario Child Benefit and the prohibition of new purchases of the existing LIF and locked-in retirement income funds (LRIFs) after December 31, 2008.
The new LIF provides account owners greater access to their locked-in funds and more flexibility in managing their retirement income by allowing the owner to unlock up to 25 per cent of the assets transferred into the fund upon purchase, make a maximum annual withdrawal based on the greater of the LIF withdrawal formula and investment returns in the previous fiscal year and extend the period for payouts from age 80 until age 90.
The regulation also eliminates the requirement for a LIF owner to purchase an annuity at age 80.
Additionally, the regulation introduces the right for a non-resident of Canada to withdraw the funds in their locked-in account once they have been a non-resident for twenty-four months, permits unlocked small account balances to be transferred directly to a non-locked-in RRSP or RRIF, and introduces consistent survivor benefit provisions for all locked-in accounts.
Finally, Regulation 909 has been updated to reflect recent changes to the federal Income Tax Act, the introduction of the new Ontario Child Benefit and the prohibition of new purchases of the existing LIF and locked-in retirement income funds (LRIFs) after December 31, 2008.
Contact Address:
Pension Benefits Standards Policy
Ministry of Finance
5th Floor, Frost South
7 Queen's Park Crescent
Toronto ON M7A 1Y7
Ministry of Finance
5th Floor, Frost South
7 Queen's Park Crescent
Toronto ON M7A 1Y7
Effective Date:
July 27, 2007
Decision:
Approved