LIRAs and LIFs

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Superintendent’s List of Financial Institutions

Offering Locked-in Pension Products

All banks, credit unions, trust companies and insurance companies offering LIRAs and LIFs to customers must be on the Superintendent’s List of Financial Institutions offering locked-in pension products, in order to accept transfers of locked-in funds.

The process for being acknowledged on the list requires that a Financial Institution file, with the Superintendent’s Office, a prescribed certification form, (Application for Inclusion on a List of Acknowledged Financial Institutions). Once authorized to offer British Columbia LIF and LIRA contracts, a copy of the appropriate LIRA or LIF addendum as provided under Schedule 1 and Schedule 2 of the PBSR must be provided to LIRA and LIF owners.

Superintendent’s List of Financial Institutions offering locked-in pension products

Life Income Fund (“LIF”) Maximum Annual Withdrawal

This section describes the maximum amounts payable from a LIF that is opened on and after September 30, 2015.

Life Income Fund (“LIF”) Interest Rate & Withdrawal Calculations

Long Term (10+ Years) Marketable Government of Canada Bonds (Average Yields) CANSIM Series V122487 — November of Prior Year.

YearRate
20074.03%
20084.22%
20094.00%
20103.84%
20113.60%
20122.61%
20132.20%
20143.01%
20152.36%
20162.17%
20172.06%
20182.16%
20192.39%
20201.57%
20211.06%

Calculate the BC LIF Maximum Withdrawal Factors using the following formulas:

T = [90 minus the Owner’s age] and;
R = the greater of the rate shown above and 6.00%

The factor “F” refers to the value on the first day of the fiscal year (which after the initial year will always be January 1) of a $1/year term certain annuity to age 90.

(a) Use this formula to calculate “F” for all ages less than 75:


Pension formula

(b) Use this formula to calculate F for all ages 75 and older:

Pension formula 2

The maximum withdrawal amount is calculated as the greater of:

  1. The preceding year’s investment return in the LIF; and
  2. The amount determined by taking the LIF balance at the beginning of the year and multiplying it by the BC Maximum Percentage shown in the table below.

NOTE: When a LIF is first established, A is 0 and B is the LIF balance on the day the LIF is created.

AgeFBC Maximum Percentage (1/F)AgeFBC Maximum Percentage (1/F)
5015.94916.27%7012.15818.22%
5115.84606.31%7111.82768.45%
5215.73686.35%7211.47738.71%
5315.62106.40%7311.10599.00%
5415.49826.45%7410.71229.34%
5515.36816.51%7510.29509.71%
5615.23026.57%769.852710.15%
5715.08406.63%779.383810.66%
5814.92916.70%788.886911.25%
5914.76486.77%798.360111.96%
6014.59076.85%807.801712.82%
6114.40626.94%817.209813.87%
6214.21057.04%826.582415.19%
6314.00327.14%835.917316.90%
6413.78347.26%845.212419.19%
6513.55047.38%854.465122.40%
6613.30347.52%863.673027.23%
6713.04167.67%872.833435.29%
6812.76417.83%881.943451.46%
6912.46998.02%89+1.0000100.00%

For information on minimum withdrawal factors for Registered Retirement Income Funds, please contact the Canada Revenue Agency.

LIFs Opened Before September 30, 2015

There is no requirement for financial institutions to recalculate the maximum payable from a LIF that was opened before September 30, 2015, although the financial institution may do so, if they wish.

This means that the maximum amount that may be paid will be determined in accordance with the requirements of the legislation at the date the LIF was opened.