Locked-In Plans

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.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.