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Understanding locked-in plans
Locked-in plans are when employers and employees’ vested contributions and interest are transferred into a Registered Retirement Savings Plan until the investor reaches a specific age (anywhere from age 50 to 70) depending on the pension legislation applicable to your plan.
Types of plans – Retirement savings and retirement income
Locked-in Retirement Account (LIRA), Locked-in Retirement Savings Plan (LRSP), and Restricted Locked-in Savings Plan (RLSP) are locked-in versions of a Registered Retirement Savings Plan (RRSP) to which no contributions can be made.
Life Income Fund (LIF), Locked-in Retirement Income Fund (LRIF), Prescribed Retirement Income Fund (PRIF) and Restricted Life Income Fund (RLIF) are locked-in versions of RRIFs. No contributions can be made and withdrawals are subject to annual minimums and maximums.
Federal Pooled Registered Pension Plan (PRPP)
A Pool Registered Pension Plans (PRPP) is a new kind of deferred income plan designed to provide retirement income for employees and self-employed individuals who do not have access to a workplace pension. Recent regulatory changes allow Mackenzie Investments to accept and administer funds derived from Federal PRPPs, in addition to funds derived from Federal Registered Pension Plans (RPPs).
A locked-in account that has accepted funds derived from a Federal RPP must be kept separate from a locked-in account that has accepted funds derived from a Federal PRPP. The RPP funds must be kept separate from the PRPP funds to ensure that the correct prescribed government forms are used in certain unlocking transactions.
There is a separate addendum for PRPP assets and RPP assets under each Federally legislated account type.
Benefits of locked-in plans
- Moving vested amounts into a locked-in account provides diversification.
- Full and direct access to a range of investment options that are typically more limited in a pension plan.
- Helps avoid uncertainty with respect to retirement income from future instability or uncertainty of an employer.
- While locked-in plans can be strict with regards to withdrawals, certain jurisdictions may permit access to funds that are locked‑in.
- Certain jurisdictions may permit a client to unlock a lump sum amount as a one-time event.
Who should invest?
Investors who:
- Have left a former employer and have vested contributions.
- Would like more diversification as part of their retirement savings.
- Are concerned about the stability of their retirement savings with current employer.
- Want more control over their investments.
Maximize your savings
- Work with an advisor to get advice on which locked-in plan is right for you.
- Choose from a large selection of investment options to diversify by asset class.
- Consider managed portfolio solutions such as Symmetry Portfolios – higher returns with less expected risk.
Next steps
Contact your financial advisor for more information on locked-in plans.
Applications and Forms
- Multi-Plan Application (413 KB PDF)
- Newfoundland and Labrador LIRA, LIF or LRIF Statutory declaration of non-residency (82 KB PDF)
- Spousal Consent to Transfer to a Life Income Fund (LIF) Locked-in Retirement Income Fund (LRIF) – Newfoundland (64 KB PDF)
- Spousal consent to transfer to a Life Income Fund (LIF) – Ontario (51 KB PDF)
Locked-In Addenda
- Locking-In Supplement for an Alberta, British Columbia, New Brunswick LIF or Newfoundland LRIF (534 KB PDF)
- Locking-In Supplement for an Alberta, British Columbia, New Brunswick or Newfoundland LIRA or Locked in RSP (550 KB PDF)
- Federal LIF Addendum (67 KB PDF)
- Federal LIF Addendum (PRPP) (66 KB PDF)
- Federal LRSP Addendum (62 KB PDF)
- Federal LRSP Addendum (PRPP) (62 KB PDF)
- Federal RLIF Addendum (69 KB PDF)
- Federal RLIF Addendum (PRPP) (69 KB PDF)
- Federal RLSP Addendum (61 KB PDF)
- Federal RLSP Addendum (PRPP) (61 KB PDF)
- Newfoundland and Labrador LIF Addendum (78 KB PDF)
- Saskatchewan PRIF Addendum (196 kb PDF)
- Saskatchewan LIRA Addendum (168 kb PDF)
- Manitoba LIF Addendum (227 kb PDF)
- Manitoba LIRA Addendum (96 kb PDF)
- Manitoba PRIF Addendum (144 kb PDF)
- Manitoba LIRA or LIF Statutory declaration of non-residency (112 KB PDF)
- Ontario RPP New LIF Addendum (204kb PDF)
- Ontario RPP New LIRA Addendum (195 kb PDF)
- Nova Scotia LIF Addendum (226 kb PDF)
- Nova Scotia LIRA Addendum (228 kb PDF)
- New Brunswick LIF Addendum ( 222 kb PDF)
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
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This should not be construed as legal, tax or accounting advice. This material has been prepared for information purposes only. The tax information provided in this document is general in nature and each client should consult with their own tax advisor, accountant and lawyer before pursuing any strategy described herein as each client’s individual circumstances are unique. We have endeavored to ensure the accuracy of the information provided at the time that it was written, however, should the information in this document be incorrect or incomplete or should the law or its interpretation change after the date of this document, the advice provided may be incorrect or inappropriate. There should be no expectation that the information will be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise. We are not responsible for errors contained in this document or to anyone who relies on the information contained in this document. Please consult your own legal and tax advisor.