Refunding
LIRAs
A person can obtain a refund, that is a cash payment of his or her locked-in retirement account (LIRA) under the following circumstances, if the conditions provided to be entitled to it are met.
To obtain a refund, a person must file an application with the
financial institution that manages the
LIRA and not with Retraite Québec. Retraite Québec does not have the power to authorize a refund.
Every
LIRA refund is taxable. Income tax can be deferred if the amounts can be transferred
directly to a registered retirement savings plan (RRSP) or to a registered retirement income fund (RRIF). For more information, contact the Canada Revenue Agency by consulting the
Transferring 
section of their website or by calling 1 800 959‑7383.
Neither the financial institution nor Retraite Québec can authorize an
LIRA refund if the person does not meet the conditions provided, even if the person has financial difficulties.
Person aged 65 or over with retirement savings lower than or equal to $28 520 in 2025
A person can withdraw at all times the entire balance of his or her locked-in retirement account (LIRA) if he or she meets the following two conditions:
The person is aged 65 or over at the end of the year preceding the application.
The total of the
locked-in amounts accrued in the above-mentioned savings instruments affected does not exceed 40% of the maximum pensionable earnings (MPE) of the year of the application, that is $28 520 (= 40% of $71 300 in 2025.
Savings instruments affected:
- locked-in retirement accounts (LIRAs)
- life income funds (LIFs)
- defined-contribution pension plans or a defined-contribution component of defined‑contribution or target-benefit pension plans
- simplified pension plans (SIPPs)
- locked-in registered retirement savings plans (RRSPs)
- voluntary retirement savings plan (VRSPs).
The person must complete the declaration of
Schedule 0.2 to the Regulation respecting supplemental pension plans, and send it to the financial institution.
Only the financial institutions that manage the savings instruments and plan administrators can inform the person on the amounts he or she holds.
Disability reducing life expectancy
A person is entitled to a total or partial refund of the balance of his or her locked-in retirement account (LIRA) if he or she is impaired with a physical or mental disability and the disability reduces his or her life expectancy. The person can request the refund until 31 December of the year during which he or she turns 71, which is the deadline to hold an LIRA.
The refund can be made in one or more instalments.
The refund must be made regardless of the agreed-upon term of investment. Penalties or fees can be provided for in the contract where the investments are cashed in before the deadline.
The person must provide the financial institution that manages his or her
LIRA with a medical
certificate confirming that his or her physical or mental disability reduces his or her life expectancy.
Definition of disability to be entitled to a refund
A person must meet the following two conditions.
The person has a physical or mental disability.
If health problems do not affect his or her ability to work, the person cannot be considered to be disabled.
His or her disability reduces his or her life expectancy.
Life expectancy does not have to be significantly reduced.
The financial institution that manages the
LIRA can neither tighten nor loosen those restrictions.
Medical certificate
The medical certificate must be issued by a physician who is a member of the
Collège des médecins du Québec or has an equivalent status.
The medical certificate does not have to mention the person's diagnosis, nor his or her life expectancy. It must only indicate that his or her physical or mental disability reduces his or her life expectancy. It can be a letter signed by a physician as in the following example.
2 January 2025
Charlie Bailey
7878, 501e Rue Est
Québec (Québec) G1J 9N9
Subject: Medical certificate
I hereby confirm that the physical disability you have reduces your life expectancy.
Signature :
Dr. Maurice Lamarche, MD
Licence or registration number 123456
Medical clinic at your service
9696, Street name
Québec (Québec) G1H 2J3
In addition:
Non-residency in Canada
A person can request the refund of the balance of his or her locked-in retirement account (LIRA) in a single instalment, regardless of his or her age, if
he or she has not lived in Canada for at least two years.
It is only when investments come to maturity that a refund can be made. However, the contract entered into with the financial institution can allow the refund to be made before the investments have come to maturity. In that case, penalties or fees may be required depending on the contract.
It is the responsibility of the financial institution that manages the
LIRA, and
not Retraite Québec, to ensure that the person has not lived in Canada for at least two years. To that end, the financial institution must obtain proof it deems satisfactory.
Legal reference