On March 1, 2021, N&L began allowing members to unlock funds from certain retirement accounts if they face financial hardship or are a non-resident of Canada for two consecutive years. This was the result of passing Bill 54 which amended the Pension Benefits Act, 1997. This applies to the following account types:

  • Locked-In Retirement Account (LIRA)
  • Life Income Fund (LIF)
  • Locked-In Retirement Income Fund (LRIF)

 

This unlocking will be done by the financial institution holding the funds. There are similar rules in place for numerous other provinces. In terms of financial hardship, there are six categories:

  1. Low income
  2. Medical expenses
  3. Disability-related expenses
  4. Default of mortgage payments
  5. Rental arrears
  6. First month’s rent and security deposit

 

What does this mean to you?
There may be changes to processes and plans. We’re reviewing these amendments to identify any action needed. If there are impacts to plans or processes, we’ll send further communications with next steps. 
 
Questions?
Please contact your Sun Life Group Retirement Services representative.