Changes to the British Columbia’s Pension Standards Benefits Act (PBSA) come into effect on September 30th, 2015. The changes impact the administration of former Locked In Retirement Savings Plans (LRSPs) now referred to as Locked In Retirement Accounts (LIRAs) and Life Income Funds (LIFs).
The revised PBSA and Regulations now require locked-in plans to allow for the unlocking and withdrawal of locked in funds upon application by the owner, under the following circumstances:
- Shortened Life Expectancy
- Non-residency for Tax Purposes
- Financial Hardship
Financial Hardship was a circumstance not previously available to customers with B.C. Locked In Accounts.
Customers applying for a new LIRA or LIF after September 30, 2015 will receive the new addendum as part of their contract. If you are an existing customer who has a Locked in Retirement Savings Plan (LRSP) or Life Income Fund (LIF) issued prior to September 30,2015 and would like to obtain a new addendum for your contract you can do so by clicking on link below.
Forms pertaining to these changes can be found here: http://www.fic.gov.bc.ca/index.aspx?p=pension_plans/Forms_NewAct