Changes to the RRIF Minimum Calculation rate as a result of the 2015 Federal Government Budget announcement

September 9, 2015

This update contains important information about Federal budget changes that will affect plan members ages 71 – 94, who are receiving payments from RRIF/LIF products.

As part of the 2015 Budget, the federal government recently introduced new, lower minimum withdrawal factors for ages 71 – 94 for RRIF and other provincially legislated pension accounts. These new changes apply retroactively to January 1, 2015. RRIF members and other provincially legislated income plan holders are not required to take the reduced minimum income payments in 2015. Payments using the new minimum factors will take effect on January 1, 2016.

Members may continue to receive the minimum income withdrawal amounts set out before the 2015 Budget and re-contribute the difference to any RRIF before February 29, 2016

More information is available on the Canada Revenue Agency website.

Next Steps:
Sun Life will be notifying plan members receiving payments from RRIF other provincially legislated pension accounts via web messaging on the Customer Access homepage in the ‘Please Read’ section beginning September 11th, 2015 and on the September 30, 2015 member statements.

Sun Life is being consistent in its approach to the Federal Budget changes with other companies in the industry. We are working with the Canada Revenue Agency and other regulators to answer questions and manage possible implications while working on system enhancements.

Please contact your Sun Life Financial Group Retirement Services Representative.