WELCOME

I was surfing the Internet one day and I noticed that Saskatchewan had unlocked their citizens locked in pensions 100% when they were transferred from a locked in retirement account ((L.I.R.A.)) into a Fund where they would be able to start collecting from . (( we will call the unlocked fund a registered retirement income fund R.R.I.F. )) The name varies a little bit Province to Province. I was surfing a bit more and I found that Manitoba had Unlocked 50% of the locked in funds in their province for their people. (( They are currently being lobbied to unlock the remaining 50% )) I then begin to think (( and that is hard to do sometimes )) Ontario being a progressive Province. Why is Ontario not unlocking these funds for their people. Considering that this is very unjust and cruel legislation keeping these funds Locked in when a person reaches Retirement age. Many of us were lead to belive when we contributed to the Defined Contribution Fund and reached the age of retirement that we could draw on our funds at will. Not be controlled by the Government and only allowed to remove basically the interest on the funds from 2.5% to 11% depending how good the fund was doing. This our OWN MONEY not Government Money. It is not OAS or CPP.

Wednesday, October 3, 2007

A Great Article

Hi This is a Great article that Linda Leatherdale wrote.
Any wise politician knows this:
Don't tick off the blue-rinse crowd.
Well, this powerful voter group is ticked off. Skyrocketing property taxes have them seeing red. So do gouging electricity bills that Queen's Park hit with a debt retirement tax, plus GST. And they're angry about a clampdown on their precious income trusts, thanks to the feds.
But here's an issue that really has them riled. Not allowing them access to their locked-in pension money.
Their anger hits meltdown when they recall how MPPs were allowed total access to their pension money in 1999, when some $54 million was withdrawn from the old pension scheme, then topped up with $55 million from general revenues, for a total of $109 million funnelled into MPP RRSP accounts.
"It's disgusting how elected officials have this ongoing trend of continually taking care of themselves, while totally ignoring the rest of the electorate," writes Eva Cherwinski, one of thousands who've signed a petition demanding access to locked-in funds.
Here's how Ontario's pension laws work.
Let's say you're 48, and you get the boot out the corporate door. Any money accrued in your company pension plan would be moved into a Locked-In Retirement Account (LIRA), and you're not allowed to touch the money until you're 55.
Problem is access is very limited, like only 6.7%. The older you get, the more money you can get at -- but not until age 90 can you take all your money.
James Law accuses Queen's Park of being "cruel." He wrote that five years ago his mother was diagnosed with cancer and his father, then 68, had a sizable amount of money in a locked-in pension. His parents wanted to travel and enjoy the money while they could, but his father was denied access to the funds. His mother died two years later, and now his dad is gone, too."
We, his children, did not want their money," Law said.
Recent changes to pension laws allow people facing financial hardships to get at the money. Also, you're allowed access if a doctor certifies you have less than two years to live. In the past, regulators voiced concern if people had access they could blow the money and become dependent on low-income government programs. Others worried benefits, like the GST credit and old age credits, could be jeopardized, plus investors would miss out on extra value in vested pensions.
But Malcolm Hamilton, a pension expert with Mercer Consulting, says their worries are misguided. "Personally, I don't see (why) the protection is needed," he said, pointing out investors have access to their RRSP money and there is no evidence of irresponsibility.
CONVERT OR CASH OUT
RRSP funds grow tax free up to age 71, when you must either convert to a RRIF or an annuity, or cash out.
Cash out early and you pay tax at your income tax rate.
The bottom line is Saskatchewan already allows 100% access to those 55 or older, Manitoba is soon to do the same, Alberta allows 50% at age 50, and New Brunswick 25%.
It's estimated one million Canadians have locked-in pension money, with 450,000 of them in Ontario.
"Why begrudge Ontarians the same right?" asks Bill Gleberzon, director of government relations with Canada's Association for the 50 Plus (CARP).
With only 12 days to the Oct. 10 Ontario election, the CARP, along with the Ontario Coalition of Independent Locked-In Fund Holders, is making this a political hot potato.
This week, they went to Queen's Park to demand changes that would see those aged 55 be allowed to access 50% of locked-in funds, and at 65, 100%.
CARP has Conservative leader John Tory's support. He promises 100% access.NDP leader Howard Hampton is also committed.
In December 2006, NDP MPP Andrea Horwath tabled a private's members bill that would unlock funds.
With the heat on, Fiberal leader Dalton McGuinty was forced to introduce legislation to take effect in January 2008, that would allow people to transfer their current locked-in fund into a new locked-in fund, and be able to access 25% of the money within 60 days.
"Miss the 60 days, and you're out of luck," said CARP's Gleberzon.
Wanna fight back?
As Patricia Reeves argues, "It's our money, not yours!"
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