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LIF temporary income information

If your LIF is locked-in under the rules of one of these provinces – Newfoundland and Labrador, Nova Scotia or Quebec – you may qualify for temporary income. Below you’ll find details on who qualifies and how to apply for temporary income.

  • You may receive a temporary income if:
    • you are under the age of 65 on the year you apply for the temporary income withdrawal, and
    • the total pension income from all LIFs, LRIFs, life annuities and non-CPP pension plans you receive for the year that you apply is less than 40% of the year’s YMPE. 
  • *What’s YMPE? It stands for Yearly maximum pensionable earnings. The Canadian government sets the YMPE figure each year. This determines the maximum amount of income used to calculate contributions to the Canada or Quebec Pension Plan (CPP or QPP). The YMPE specifies the earnings amount that can be used in calculating pension contributions for each year. See a list of the YMPE figures set by year.
  • So what if you meet the above conditions? Then you may withdraw the difference between 40% of the YMPE for the calendar year in which the application is made, and the total pension income you’ll get from all LIFs, LRIFs, life annuities and pension plans governed by Newfoundland and Labrador pension legislation or established by or governed by an Act of Canada or a province, except income from the Canada Pension Plan. 
  • As an example, let’s say the CRA set a YMPE of $57,000. To find out 40% of that figure, you’ll multiply 57,000 x  .40, which equals $22,800. If you earn less than that amount ($22,800) for the year, you can then subtract however much you earn from all your LIFs, LRIFs, life annuities and pensions (except your CPP) from that amount. So if you earned $10,000 in LIFs and pensions, you’ll subtract that from $22,800 and be left with $12,800. That’s the amount you could potentially withdraw the year you apply.
  • At the beginning of the plan year of the contract, you must submit Form 8 - Application to receive a temporary income.
  • If you have a principal beneficiary, then they must consent to the payment of temporary income as a part of Form 8 - Application to receive a temporary income.
  • You must take your annual minimum in cash. And, you can’t transfer it to another registered contract. 
  • You can't elect a temporary income and then make additional withdrawals within the same year.

For more information:

  • You can make an application using Form 10 - Application for temporary income from a LIF. You must send this application to us for payment of a temporary income under the LIF.
  • And, the following conditions also apply:
    • You must be at least age 55 but under age 65.
    • The temporary income can’t be transferred to a non locked-in product.
    • Spousal consent isn't required.
    • You must calculate the temporary income amount using the calculator available on the Nova Scotia website.

For more information:

Sun Life isn't required to offer temporary income. This is an option provided by the Quebec Supplemental Pension Plans Act.  To request temporary income, the option must be available as part of your contract.

If you’re under age 54:

  • You can draw a temporary income each year.
  • To qualify for a temporary income, you must meet the following conditions:
    • be under age 54 the year before you apply
    • have only one LIF
    • any other income you expect to receive the year after you apply, other than Family Allowance or support payments, must not exceed 40% of the YMPE

Please note: an application for a temporary income is valid only for the year in which it’s made.

  • You can not receive both a maximum life income and a temporary income in the same year.
  • To determine the amount available for temporary income and the forms required select Quebec LIF Quick Calc.
    • Tip: For the purpose of the value of "other income" in the Quick Calc inputs, the regular LIF income for you must be considered zero. That’s because you’ll receive zero LIF income if you’re getting temporary income and are under age 54. You can not receive both at the same time if you’re under age 54.
  • You apply to the administrator for temporary income by completing the following:
    • Schedule 0.5 - Temporary LIF income (under age 54), and
    • Schedule 0.9.1 - Transfer to a LIF (under age 54)
  • You’ll receive payment for the temporary income amount on a monthly basis.
  • The monthly payment you receive can not exceed 40% of the YMPE divided by 12.

If you’re between the ages of 54 to 64:

  • You can draw a temporary income each year regardless of your employment income.
  • To qualify for a temporary income, you must be at least 54 years of age and less than 65 years of age before you apply.

Please note: an application for a temporary income is valid only for the year in which it’s made. 

  • If you withdraw a temporary income, the maximum life income amount will be reduced. 
  • Sun Life must provide you with account details, where the funds transferred into the LIF during the current year are not directly or indirectly from another LIF
  • The amount of temporary income you can receive depends primarily on other temporary income that you get under a supplemental pension plan or another LIF.
  • To determine the amount available for temporary income and what forms are required select Quebec LIF Quick Calc
  • You can apply to Sun Life for temporary income by completing the following:
    • an application/instructions that provides direction of the temporary income, and
    • Schedule 0.4 - Temporary LIF income (ages 54-64)
    • Schedule 0.9 - Transfer to a LIF (age 54 and over) - used when temporary income is being requested right after the transfer from a LIRA or LIF
  • A portion of the income can be transferred to a retirement savings product. The balance of this product can’t be converted to a life annuity and it can’t exceed the maximum life income for the year. 
  • You can take the temporary income portion in a lump sum withdrawal or on a monthly basis.
  • The temporary income can’t be paid after the end of the year in which you turn age 65.

For more information: