Life Income Funds (LIFs) are a type of locked-in income account, similar to a Registered Retirement Income Fund (RRIF), but with certain restrictions. An LIF is a special type of RRIF into which you can transfer funds that originate from pension benefits under a federally regulated pension plan.
For example, when you cease to be a member of a Registered Pension Plan (RPP) before you reach retirement age, you must decide how your accumulated pension benefits are to be handled. The options available basically include any of the following:
Locked-in accounts fall into two categories:
Note: While InvestingForMe provides a general discussion concerning the various aspects of LIFs governed by federal pension legislation, we do not discuss the guidelines for provincially regulated LIFs, as each province maintains its own pension legislation and the differences between each province’s pension legislation are numerous. In addition, changes in provincial pension legislation occur independently and sporadically. For more detailed information regarding the different provincial regulations, weprovide links to the pension administration websites for each of the provincial governments in our section link to Government Pension Websites