Reviewed by Paul Thorne
Both RLIFs and LRIFs are types of Registered Retirement Income Fund (RRIF) products that let you turn locked-in pension funds into retirement income.
The main difference between the two is that RLIFs are available for federally regulated locked-in pension funds while LRIFs are only available for pension funds regulated by the pension legislation of the province of Newfoundland & Labrador.
Your savings are tax-deferred until withdrawn. You'll be paying taxes only on the money you withdraw each year.
Investments in your plan are under your control, so you can hold a variety of investments for growth.
When you die, any money left in your plan goes to your spouse or common-law partner (CLP). If you don’t have a spouse or CLP at that time, it goes to your designated beneficiaries or estate, as applicable.
An RLIF is a type of RRIF that allows you to convert federally regulated locked-in pension funds into income for your retirement.
An RLIF has the same maximum limits as a federal Life Income Fund (LIF) and the same restrictions. The main difference is the ability, at age 55 or older, to unlock up to 50% of the amount transferred to an RLIF within 60 days of its deposit.
The unlocked funds must be transferred to a Registered Retirement Savings Plan (RRSP) or a RRIF.
An LRIF is another type of RRIF that allows you to convert pension funds into retirement income, but only for those with “locked-in” pension funds governed under Newfoundland & Labrador pension legislation. You may set up an LRIF only when you turn 55 (or the earliest date you are entitled to a pension under the Pension Benefits Act, 1997 or your original workplace pension plan).
An LRIF functions like a RRIF with one main exception: the plan must provide payments for life; it can’t be terminated before you die. Cash withdrawals are permitted if the total of any withdrawals and regular payments doesn’t exceed the maximum allowable each year.
The one-time 50% unlocking limit from the RLIF is calculated as 50% of the funds in the RLIF on the date the actual withdrawal occurs. No more than 50% of the value of the RLIF on that date may be unlocked.
An LRIF is very similar to a LIF, except that the LRIF’s maximum withdrawals are based on investment income in the previous year.
A life income fund (LIF) is a registered account that pays you income from your locked-in pension assets. It’s designed to provide you with income during your retirement years.
A locked-in retirement account (LIRA) holds money from your former employer’s pension plan and allows you to choose how you grow your investments.
A registered pension plan (RPP) is a plan set up by your employer to help you save money for retirement. You can contribute to this plan through payroll deductions.
Sign in to my Sun Life to access your account.
Available self-serve features depend on your account, contract, or policy.
This information is meant for educational and illustrative purposes only. Some exclusions and restrictions apply. Last updated: December 30, 2024.
