Start paying yourself from locked-in pension assets during retirement.
Both RLIFs and LRIFs are types of Registered Retirement Income Fund (RRIF) products. You can turn locked-in pension funds into retirement income. The main difference between the two is that an RLIF is a federally regulated locked-in pension fund, while an LRIF is available only for pension funds regulated by the pension legislation of the province of Newfoundland & Labrador.
What are the advantages of an RLIF/LRIF?
Tax advantages
Your savings are tax-deferred until withdrawn. You'll be paying taxes only on the money you withdraw each year.
Flexibility
Investments in your plan are under your control, so you can hold a variety of investments for growth.
Survivor’s benefits
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.
What is a Restricted Life Income Fund (RLIF)?
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 transfer. The unlocked funds must be transferred to a Registered Retirement Savings Plan (RRSP) or a RRIF.
What is a Locked-in Retirement Income Fund (LRIF)?
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 an 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.
Frequently asked questions
What is the difference between an RLIF and a federal LIF?
An RLIF is very similar to a federal LIF, with the main difference being that the RLIF includes the one-time 50% unlocking option.
What is the date on which the one-time 50% unlocking limit is determined for an RLIF?
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 the transfer. The unlocked funds must be transferred to a Registered Retirement Savings Plan (RRSP) or a RRIF.
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.
What is the difference between an LRIF and a LIF governed by the Newfoundland & Labrador legislation?
An LRIF is very similar to a LIF governed by the Newfoundland & Labrador legislation, except that the LRIF’s maximum withdrawals are based on investment income in the previous year.
Additional retirement resources
What is a Locked-in Retirement Account (LIRA)?
Keep your pension money set aside in a LIRA for your retirement.
What is a Registered Pension Plan (RPP)?
Save money for retirement with a plan set up with your employer.