Rates related to calculations of a life income under an LIF
Rates prescribed by the Regulation respecting supplemental pension plans are taken into account in certain calculations of income related to a life income fund (LIF).
Those rates are reviewed each year.
Interest rate of the method shown in the Regulation for persons aged 55 and over
An interest rate is part of the calculation of the estimate of a life income for persons aged 55 and over where the financial institution that manages the LIF
chooses to apply the method shown in the Regulation respecting supplemental pension plans (see section 12 of the
Regulation to amend the Regulation respecting supplemental pension plans) to determine the estimate.
Prescribed rate for persons under age 55
A prescribed rate for a year after 2024 is used to calculate the upper limit of the
life income for a person under age 55.
Reference rate
A reference rate for a year
after 2024 is used
only to calculate the maximum
phased retirement benefit of a defined-contribution plan, in accordance with section 33 of the
Regulation to amend the Regulation respecting supplemental pension plans. Since a reference rate for a year
prior to 2025 is used to determine the factor provided for in Schedule 0.6 to the Regulation respecting supplemental pension plans in its version prior to 1 January 2025 which, based on the person's age, applies to the calculation of the upper limit of the life income.
- From 2003 to 2025: 6.0%
- 2002: 6.5%
- 2001: 6.0%
- 2000: 6.5%
- 1999: 6.0%
- 1998: 6.5%
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