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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.

Friday, July 6, 2007

Backgrounder

Fairness for You and Your Family -
Unlocking Locked-in PensionsFairness is a basic value for Ontarians - one that has many dimensions.
Fairness means an Ontario that rewards hard work, entrepreneurship and innovation, respecting taxpayers and giving everyone a chance to participate in the province’s prosperity.
Fairness also means giving Ontarians control over their hard-earned retirement savings.
John Tory believes individuals know how to manage their own money better than the government.
That’s why a John Tory PC Government will give Ontario’s retirees 100 per cent access to their locked-in pension income - 50 per cent at age 55 and the remaining 50 per cent at age 65 - which under current rules are locked-in by the government until age 90.
What is a Locked-in Pension?

· When individuals leave a company that provides a defined benefit or defined contribution pension plan, they may have the option of leaving their portion of the pension in the company plan or rolling it into a Locked-In Retirement Account (LIRA).
· At age 55 or the normal retirement date of the commuted pension plan (whichever is earlier) individuals may transfer their LIRA into a Life Income Fund (LIF) or Locked-in Retirement Income Fund (LRIF).·
LIRAs, LIFs and LRIFs are regulated independently by each province and territory and the federal government for federally regulated industries.
Locking-in Rules in Ontario

· Locking-in rules prevent individuals from increasing their retirement income in any one year beyond the annual withdrawal limits for LIFs and LRIFs.
LIRAs do not allow any withdrawals.·
LIF/LIRA/LRIF-holders cannot access additional principal in their locked-in accounts unless they can demonstrate to the Government that they are in dire financial or health circumstances.·
By age 71, LIRAs must be transferred into a LIF or LRIF, or used to purchase a life annuity. ·
By age 80, LIFs must be transferred into an LRIF or used to purchase a life annuity. ·
At age 90, individuals are finally able to withdraw the remaining principal in their LRIF.
The Liberal Response

· Dalton McGuinty inadequately responded to Ontarians’ concerns in the 2007 Budget by proposing access to 25 per cent of locked-in accounts at the earliest retirement date of the pension plan from which the money was transferred and 100 per cent access at age 90.·
These changes have not yet been made to the appropriate regulations or legislation.
Unlocking in Other Jurisdictions

· Alberta (50% at age 50), Saskatchewan (100% at age 55), Manitoba (50% at age 55) and New Brunswick (25% at any age) have already changed their laws to enable older adults to access some, or all, of their locked-in pension
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