LIRAs and LIFs
Locked-in retirement accounts (LIRAs) and
life income funds (LIFs) are
transfer instruments for amounts that come
directly or
initially from:
- a supplemental pension plan (often called pension plan) subject to the Supplemental Pension Plans Act (e.g.: pension plan in the private, municipal or university sector of Québec);
- a supplemental pension plan established by an Act or a government, such as the Government and Public Employees Retirement Plan (RREGOP);
- a locked-in voluntary retirement savings plan (VRSP) account.
LIRAs are used to increase amounts for retirement; it is an instrument that allows savings to grow.
LIFs are used to draw a retirement income; it is a savings withdrawal instrument.
Warning against fraudulent withdrawals
We urge the LIF or LIRA holder to be wary of classified ads that propose various tax-free ways to withdraw money from an LIRA or LIF, such as by purchasing stock shares or taking out a loan. Those methods are fraudulent. They can have significant tax effects, and the LIF or LIRA holder could lose his or her money. To find out more, please consult the Fraud prevention 
section on the Autorité des marchés financiers du Québec's website.
LIRAs and
LIFs in Québec
A locked-in retirement account (LIRA) or a life income fund (LIF) of
Québec jurisdiction is:
- governed by the Regulation respecting supplemental pension plans, which comes under the Supplemental Pension Plans Act;
- supervised by Retraite Québec, which:
- registers the texts of standard contracts for
LIRAs and
LIFs and their amendments;
- provides, for information purposes, instructions on the administration of the Act and Regulation.
LIRAs and
LIFs that can or cannot be seized
Amounts in a locked-in retirement account (LIRA) or a life income fund (LIF) that come from a plan subject to the Supplemental Pension Plans Act (e.g.: pension plan in the private, municipal or university sector of Québec) or from a locked-in
VRSP account:
-
cannot be seized most of the time. The Code of Civil Procedure (CQLR, chapter C‑25.01) may provide for certain exceptions.
Amounts in an
LIRA or
LIF that come from a public-sector plan of Québec (e.g.:
RREGOP,
PPMP, etc.):
-
can be seized if there is no bankruptcy;
-
can be seized if there is bankruptcy and the amounts were paid into an
LIRA or
LIF within 12 months preceding the bankruptcy;
-
cannot be seized if there is bankruptcy and the amounts were paid into an
LIRA or
LIF more than 12 months before the bankruptcy.
Buy-back of periods of service in a supplemental pension plan
Amounts accrued in a locked-in retirement account (LIRA) or a life income fund (LIF) can be used to buy back years of credited service under a defined-benefit pension plan or a target-benefit pension plan. However, the pension plan must allow those years to be bought back.
HBP,
LLP or FHSA
A locked-in retirement account (LIRA) or a life income fund (LIF)
cannot be used to establish a home buyer's plan (HBP), a lifelong learning plan (LLP) or a tax-free first home savings account (FHSA).
For more information, contact the Canada Revenue Agency by consulting the
Savings and pension plans section of their website or by calling 1 800 959‑7383.
Legal references
Also consult