Effective May 31, 2010 changes to the Manitoba Pension Benefits Act and Regulations came into effect. Changes include: release due to non-residency; release due to shortened life must have annuitant terminally ill with a doctor certifying death likely within 2 years; spouse/CLP of original pension plan member can waiver his/her death benefit from the LIRA or LIF. Want to learn more? Watch at our Calendar page for Spring 2012 sessions.
All pension jurisdictions continue to make changes to their pension legislation and you should always double check what is and is not allowed within the particular jurisdiction you are dealing with prior to advising a member of his/her options.
There are 10 pension jurisdictions in Canada; the Federal Pension Benefits Standards Act, 1985 as well as all provinces except PEI.
The definition of common-law partner varies by pension jurisdiction.
Manitoba pension legislation allows the owner of the LIRA to purchase a Life Income Fund at any age in order to start receiving the maximum payment stream. However, the owner of the MB LIF can only apply for the once-in-life-time 50% transfer to a MB RRIF at age 55 or older.
PBSA 1985 pension legislation allows a LIRSP owner to purchase a Life Income Fund at any age in order to start his/her maximum payment stream. However, an owner of a LIRSP or LIF must be age 55 or older to request funds to be transferred to a Restricted LIF in order to request a 50% release of funds to an RRSP or RRIF.
Saskatchewan pension legislation does have a minimum age requirement, normally age 55, for a LIRA annuitant to transfer funds to a SK RRIF which has no payment restrictions.
Ontario pension legislation does have a minimum age requirement, normally age 55, for a LIRA annuitant to transfer funds to a Life Income Fund. Within 60 days of the funds being transferred to the LIF, the annuitant may request a 50% (2010) release of funds.
In most jurisdictions, if the annuitant is the spouse/CLP of the original pension plan member, the annuitant`s current spouse/CLP will have no spousal entitlement to the funds on death unless s/he is named beneficiary on the contract or heir to the estate in the Will. Know the jurisdiction you are dealing with.