Understanding locked-in plans
Locked-in plans are when employers and employees’ vested contributions and interest are transferred into a Registered Retirement Savings Plan until the investor reaches a specific age (anywhere from age 50 to 70) depending on the pension legislation applicable to your plan.
Types of plans – Retirement savings and retirement income
Locked-in Retirement Account (LIRA), Locked-in Retirement Savings Plan (LRSP), and Restricted Locked-in Savings Plan (RLSP) are locked-in versions of a Registered Retirement Savings Plan (RRSP) to which no contributions can be made.
Life Income Fund (LIF), Locked-in Retirement Income Fund (LRIF), Prescribed Retirement Income Fund (PRIF) and Restricted Life Income Fund (RLIF) are locked-in versions of RRIFs. No contributions can be made and withdrawals are subject to annual minimums and maximums.
Federal Pooled Registered Pension Plan (PRPP)
A Pool Registered Pension Plans (PRPP) is a new kind of deferred income plan designed to provide retirement income for employees and self-employed individuals who do not have access to a workplace pension. Recent regulatory changes allow Mackenzie Investments to accept and administer funds derived from Federal PRPPs, in addition to funds derived from Federal Registered Pension Plans (RPPs).
A locked-in account that has accepted funds derived from a Federal RPP must be kept separate from a locked-in account that has accepted funds derived from a Federal PRPP. The RPP funds must be kept separate from the PRPP funds to ensure that the correct prescribed government forms are used in certain unlocking transactions.
There is a separate addendum for PRPP assets and RPP assets under each Federally legislated account type.
Benefits of locked-in plans
- Moving vested amounts into a locked-in account provides diversification.
- Full and direct access to a range of investment options that are typically more limited in a pension plan.
- Helps avoid uncertainty with respect to retirement income from future instability or uncertainty of an employer.
- While locked-in plans can be strict with regards to withdrawals, certain jurisdictions may permit access to funds that are locked‑in.
- Certain jurisdictions may permit a client to unlock a lump sum amount as a one-time event.
Who should invest?
Investors who:
- Have left a former employer and have vested contributions.
- Would like more diversification as part of their retirement savings.
- Are concerned about the stability of their retirement savings with current employer.
- Want more control over their investments.
Maximize your savings
- Work with an advisor to get advice on which locked-in plan is right for you.
- Choose from a large selection of investment options to diversify by asset class.
- Consider managed portfolio solutions such as Symmetry Portfolios – higher returns with less expected risk.
Next steps
Contact your financial advisor for more information on locked-in plans.
Applications and Forms
Locked-In Addenda
- Federal LIF Addendum (67 KB PDF)
- Federal LIF Addendum (PRPP) (66 KB PDF)
- Federal LRSP Addendum (62 KB PDF)
- Federal LRSP Addendum (PRPP) (62 KB PDF)
- Federal RLIF Addendum (69 KB PDF)
- Federal RLIF Addendum (PRPP) (69 KB PDF)
- Federal RLSP Addendum (61 KB PDF)
- Federal RLSP Addendum (PRPP) (61 KB PDF)
- Newfoundland and Labrador LIF Addendum (78 KB PDF)
- Saskatchewan PRIF Addendum (196 kb PDF)
- Saskatchewan LIRA Addendum (168 kb PDF)
- Manitoba LIF Addendum (227 kb PDF)
- Manitoba LIRA Addendum (96 kb PDF)
- Manitoba PRIF Addendum (144 kb PDF)
- Ontario RPP New LIF Addendum (204kb PDF)
- Ontario RPP New LIRA Addendum (195 kb PDF)
- Nova Scotia LIF Addendum (226 kb PDF)
- Nova Scotia LIRA Addendum (228 kb PDF)