Locked-In funds originate from a Registered Pension Plan. When you terminate employment or your employer decides to wind up its pension plan, your fully vested pension benefits are transferred to a locked-in plan.

These monies can be comprised of:

• Employer contributions to the pension plan on behalf of an employee. 
• Employee contributions to the pension plan. 
• A combination of the above. 

The following types of locked-in plans are available: 

• Locked-In Retirement Savings Plan (LRSP)
• Locked-In Retirement Account (LIRA)

• Life Income Fund (LIF)
• Locked-In Retirement Income Fund (LRIF)
• Life annuities are available from Life Insurance companies only. 

Each governing jurisdiction decides which of the above plan(s) are offered.

The idea of a pension plan is to provide you with an income once you've retired. The monies you transfer out of a pension plan upon employment termination must still be used to provide for a retirement income. Even though you have investment control of the funds, the governing legislation controls the use of the funds. 

Locked-In savings plans (LRSPs/LIRAs) must be converted to a locked-in income plan by December 31st of the year you turn age 71.

Withdrawals are not allowed from an LRSP/LIRA, except in very exceptional circumstances, and there is a maximum amount that can be withdrawn each year from a LIF/LRIF.

For Retirement Income Planning Assistance

To find out more about Scotiabank's investment assistance, please call 1-800-953-7441, or contact your local branch to make an appointment.