Given the exceptional context of the COVID-19 outbreak, we have implemented a temporary measure to allow for the easing of the rules for Life Income Fund (LIF) withdrawals in 2020. Once parliamentary proceedings resume, the measure may be subject to specific legislative provisions.
Therefore, for 2020, any persons holding an LIF who were under age 70 on 31 December 2019 may obtain temporary income subject to the same conditions than the persons between the ages of 54 and 64 on 31 December 2019.
For persons holding an LIF who were under age 54 on 31 December 2019, these are the main changes:
- income from other sources, such as employement earnings, are no longer taken into account;
- withdrawals may be completed in a lump sum or in several payments during 2020, in conformity with the provisions of the contract;
- they may have more than one LIF.
Persons holding an LIF who were at least age 65, but under age 70 on 31 December 2019, are not entitled to temporary income in conformity with normal rules. Therefore, the temporary measure allows them to obtain the income, which can reach 40% of the maximum pensionable earnings (MPE), that is, $23 480 for 2020.
At any age, when a temporary income is paid, the life income is adjusted to take it into account. The adjustment depends on the amount of the temporary income that is withdrawn, the account balance and the age of the person that holds the LIF.
For additional information, contact the Direction des régimes complémentaires de retraite by telephone or by email at email@example.com.