Printed . This content is updated regularly, please refer back to https://bcfsa.ca to ensure that you are relying on the most up-to-date resources.
Unlocking pension funds
In general, money transferred from a registered pension plan into a locked-in account, such as a Locked‑In Retirement Account (LIRA) or Life Income Fund (LIF), is meant to provide income in retirement.
British Columbia’s pension legislation does not allow a 50 per cent one‑time unlocking provision for pension funds. While this feature exists under federal pension legislation and in some other jurisdictions, it is not available under B.C. legislation.
Funds may only be unlocked after they have been transferred to a LIRA or LIF, and only in specific situations allowed under the Pension Benefits Standards Act (PBSA) and Pension Benefits Standards Regulations (PBSR), including:
- Financial Hardship
- Small LIRA or LIF account balances
- Permanent departure from Canada
- Shortened Life Expectancy
If none of these conditions apply, the pension funds must remain locked in and preserved until retirement. The PBSA does not allow the Superintendent of Pensions to makes exceptions.
You should first direct all enquiries about locked-in funds to your pension plan administrator or the financial institution holding your pension funds.
All unlocking requests must be made through the financial institution holding the LIRA or LIF account. General Information can be found below.
You may make a lump-sum withdrawal up to a prescribed amount from your LIRA or LIF accounts if you are suffering financial hardship. The reasons of financial hardship include:
- Low income;
- Need to pay medical expenses;
- Threat of eviction for rental arrears;
- Threat of default on a mortgage on a principal residence;
- Need to pay a deposit to obtain a new principal residence.
Required forms
- Application to Unlock and Withdraw B.C. Funds Due to Financial Hardship
- Form 1: If you have a spouse, your spouse must complete Form 1, “Spouse’s Waiver to Permit Benefits in a Pension Plan, Locked-in Retirement Account or Life Income Fund to be Unlocked.” This form is attached to the Application to Unlock and Withdraw British Columbia Funds Due to Financial Hardship.
Form submission
You must send the completed application to the financial institution holding your locked-in funds.
Do not send the application to the Superintendent of Pensions, as the Superintendent has no role in releasing funds for reasons of financial hardship.
You may unlock and withdraw your LIRA or LIF if the account balance does not exceed the applicable threshold amount. This threshold is based on the Year’s Maximum Pensionable Earnings (YMPE) under the Canada Pension Plan. The YMPE is set by the CRA each year, so the threshold amount changes annually.
Under age 65 threshold
20% of the Year’s Maximum Pensionable Earnings (“YMPE”) under the Canada Pension Plan.
For 2026, the threshold amount is $14,920.00.
Over age 65 threshold
40% of the Year’s Maximum Pensionable Earnings (“YMPE”) under the Canada Pension Plan.
For 2026, the threshold amount is $29,840.00.
LIRA/LIF account threshold considerations
The threshold applies to each individual LIRA or LIF account. No other locked‑in pension accounts need to be considered.
If a single LIRA or LIF has a balance above the applicable small‑balance threshold, it cannot be divided into smaller accounts to qualify for unlocking. A financial institution that splits a LIRA or LIF into amounts below the applicable threshold would be in breach of the Pension Benefits Standards Regulation. However, a LIRA or LIF may be divided into separate accounts if each resulting account meets or exceeds the applicable small‑balance threshold.
Required documents
There are no prescribed forms required for this provision.
Contact your Financial Institution holding your LIRA/LIF account to unlock and withdraw your funds.
Payment options for unlocked funds
Any money that qualifies for unlocking can be paid out as cash or transferred to another tax‑sheltered account. Note, any lump sum amount withdrawn is fully taxable as income for the year it is received.
You may unlock and withdraw your LIRA or LIF account balance if you have received written confirmation from the Canada Revenue Agency (CRA) that you are a non‑resident of Canada for income tax purposes.
For more information about non-resident status, please visit the CRA website.
Required documents
- Written confirmation from CRA showing that you are considered a non‑resident of Canada for tax purposes.
- A signed statement that you have been absent from Canada for two or more years.
- Form 1: If you have a spouse, your spouse must complete Form 1, “Spouse’s Waiver to Permit Benefits in a Pension Plan, Locked-in Retirement Account or Life Income Fund to be Unlocked.”
Document submission
You must submit all required documents to the financial institution holding your LIRA/LIF account.
You may unlock and withdraw your LIRA or LIF account balance if you have an illness or disability that has been certified by a medical practitioner as either terminal or likely to significantly shorten your life.
Required documents
- Written confirmation from a medical practitioner stating that you have an illness or disability that is terminal or is expected to significantly shorten your life.
- Form 1: If you have a spouse, your spouse must complete Form 1, “Spouse’s Waiver to Permit Benefits in a Pension Plan, Locked-in Retirement Account or Life Income Fund to be Unlocked.”
Document submission
You must submit all required documents to the financial institution holding your LIRA/LIF account.
Payment options for unlocked funds
You may withdraw some or all of the money in your account, either as a single payment or series of payments for a fixed period of time.
If you do not qualify for financial hardship or another permitted exception as described above, your pension funds cannot be unlocked.
The PBSA does not allow the Superintendent of Pensions to makes exceptions.