Pension Benefits Act: Draft Regulation Respecting Locked-in Accounts
Bill or Act:
Pension Benefits Act
Summary of Proposal:
The Ministry of Finance is seeking comments from stakeholders on a draft regulation that would amend Regulation 909 under the Pension Benefits Act.
The draft regulation would harmonize the features of old life income funds (LIFs) and locked-in retirement income funds (LRIFs) with those of the new LIF that was introduced January 1, 2008, by:
- Providing account owners with a one-time option to withdraw, or transfer to an RRSP or RRIF, up to 25 per cent of their fund balance. This option would be available during a 16-month window between January 1, 2011 and April 30, 2012; and
- Modifying the maximum annual income payment features of the old LIF and LRIF to mirror those of the new LIF, effective January 1, 2011.
The draft regulation would also simplify and modernize the rules for locked-in retirement accounts (LIRAs) by consolidating LIRA-related provisions in a distinct LIRA Schedule, similar to the schedules for other types of locked-in accounts.
December 1, 2008
Comments Due Date:
February 13, 2009
Senior Policy Advisor
Pension Benefits Standards Policy
Pension and Income Security Policy Branch
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent
Toronto ON M7A 1Y7