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Federal RPP Transfer to LIRA
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Financial Planning   ->   Pensions   ->   Registered Pension Plans (RPPs)   -> Federal RPP transfer to LIRA

Transfer of a Federally Registered Pension Plan to a Locked-In Plan

Where employment has been terminated with a federally regulated employer, the Registered Pension Plan of the employee can usually be transferred to a locked-in retirement account, also known as a locked-in RRSP.  These accounts are governed by the federal Pension Benefits Standards Act (PBSA).  How the funds are withdrawn by the employee are covered by the Pension Benefits Standards Regulations s. 20 and 20.1.  The following rules apply:

bullet The funds in the locked-in account:
bullet can be transferred to another locked-in-retirement account
bullet can be used to purchase an immediate life annuity or a deferred life annuity at any time
bullet can be transferred to a life income fund (LIF) at any time
bullet once converted to a LIF:
bullet minimum withdrawals are determined by Canada Revenue Agency (Income Tax Act) rules
bullet maximum withdrawals are determined by PBSA rules - see LIF maximum payment amount table from the website of the Office of Superintendent of Financial Institutions (OSFI), on the Life Income Fund web page.
bullet it is no longer required that an annuity be purchased at age 80.
bullet Once age 90 is reached, 100% of the LIF may be withdrawn.
bullet A locked-in retirement account may provide that if a physician certifies that the life of the holder of the account is expected to be shortened considerably due to mental or physical disability, the funds can be withdrawn in a lump sum.
bullet By the end of the year in which the taxpayer turns 71, a locked-in account must be transferred - for options see the article on locked-in retirement accounts.

For information regarding unlocking of federally-regulated locked-in pension plans, see the article on unlocking your pension plan.

Revised: October 26, 2023


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