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LIRA (Locked-In Retirement Account)

rainbowThe Locked-In Retirement Account (LIRA) and Locked-In Retirement Savings Plan (LRSP) enable you, as an employee to maintain the tax-deferred status of pension plan proceeds received when you leave a company. LIRA’s lock in your money, but not your investment options. These plans are governed by federal or provincial pension legislation.

 

Plan Information:

•  The LIRA can receive pension proceeds if the planholder earned the pension while working in
a province other than BC, Nova Scotia, or PEI.

•  For pensions earned in BC or Nova Scotia, or while working in an industry governed by federal
pension legislation, Trimark offers the LRSP.

•  PEI has not yet established its own pension legislation, therefore any locked-in plans from PEI
must be handled individually.

•  All money in locked-in plans must come from your Registered Pension Plan (RPP) or from another locked-in plan. You can’t make additional contributions, but you can decide how your money is invested.

 

Special information:

The LIRA or LRSP must be collapsed in the year in which you have your 71st birthday.  You can then:

•  Purchase an annuity, or
•  Transfer the assets to a LIF or LRIF, depending on the pension legislation governing the LIRA or LRSP.