Locked-in RSPs (or Locked-in Retirement Accounts) are created if you receive your employer pension as a lump sum payment. No further contributions can be made to a locked-in account.

Your maturity options for locked-in accounts depend on the province where your pension benefits were earned. You have three options - a life annuity, Life Income Fund (LIF) or in some provinces a Locked-in Retirement Income Fund (LRIF). You must select one of these options before you turn 69.

Life annuity

Available in all provinces, a life annuity provides a steady lifetime income stream fixed at a certain rate.

Life Income Fund

Also available in all provinces, a LIF gives you control over how your assets are invested. There are minimum and maximum amounts of income you must receive from a LIF. In addition, you must convert your LIF to a life annuity before you turn 81.

Locked-in Retirement Income Fund

A LRIF is available in Alberta, Saskatchewan, Manitoba, Ontario and Newfoundland. It is similar to a LIF, except there is no requirement to convert remaining funds to a life annuity after age 80.

To learn more about Locked-in RSPs, please contact an Investment Advisor or ask an Investment Advisor to contact you.