On January 8, 2018, Newfoundland and Labrador released an amended directive (Directive No. 5) which affects that province's LIF plans/contracts.

The updates highlighted in the directive are effective retroactively from January 1, 2018, and are scheduled to be fully enacted by December 31, 2018.

Summary of the changes

Listed below is a list of the key changes to the directive. Additional information is available on the website for the Pension Benefit Standards Division: http://www.servicenl.gov.nl.ca/pensions/index.html



Section 8(d) - LIF Maximum calculation

The amount of income paid out of the LIF during a fiscal year must not exceed the "maximum" payment which is now based on the greater of (a) the formula provided (no change from previous Directive) and (b) the amount of investment earnings, including any unrealized capital gains or losses, of the LIF in the immediately previous year

Member accounts will be updated accordingly for 2019 payouts

Members no longer need to convert an LIF to an annuity at age 80

Members may stay in the LIF past 80

Section 10 – Withdrawal/Small Benefits

Commutation restricting small benefits withdrawals where the plan member has withdrawn under the temporary income provision in the calendar year

Plan members who have received a temporary income in the calendar year will not be able to also elect a small benefits withdrawal

Addition to Section 22(e), 23, 24 – Notification to members regarding temporary income

The plan member must be provided notification that they may be entitled to receive additional temporary income under section 8(f) during the current fiscal year

This notification must be provided to the owner:

(a) At the beginning of each fiscal year;

(b) Upon transfer to another prescribed retirement income or savings product; or

(c) Upon death of the owner

December 2018 statement message to affected plan members will be amended as follows:

You may be entitled to receive additional temporary income above your calculated maximum payment if you meet specific criteria. Please review your LIF contract or contact Sun Life if you would like more information.


Affected plan members will receive an amended Newfoundland LIF addenda sent via registered mail the week of November 12.

For more information:

Please contact your Group Retirement Services representative