Locked-in RRSP in Canada

[Explorer]

I just received this from OFSI:

Thank you for your e-mail of August 12, concerning
non-resident locked-in funds.

Section 28.4 of the Pension Benefits Standards Regulations, 1985 (PBSR) was introduced to exempt plan members and former members who cease to be Canadian residents, from the application of the locking-in requirements of section 18 of the Pension Benefits Standards Act, 1985 (PBSA).

The Office of the Superintendent of Financial Institutions has recently reviewed this policy, and has concluded that there is no requirement that the plan text specifically provide for the provision
set out in section 28.4(1) of the PBSR, and that
this provision can be added to an existing locked-in RRSP; so that where the requirements of section 28.4 of the PBSR (non-residency conditions) are met, the pension benefit credit held in that RRSP can be unlocked.

Your financial institution should be able to release the funds in a lump sum once these legislative requirements have been met.

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In Summary:
If you have a Locked-in RRSP, are covered by PBSR Rules, and are a non-resident (for two years) you can now instruct whom ever holds the Locked-in RRSP funds to unlock them for you. You will have to pay a 25% non-residents withholding tax, of course.

If you know of anyone in this situation feel free to pass it on.

[CanuckAbroad]

Hey Explorer,

Welcome to the forums, and thanks for that info! I'm sure many will find it useful.

[Explorer]

Hey Explorer,

Welcome to the forums, and thanks for that info! I'm sure many will find it useful.

Thanks, even if it only helps One I would be happy.

And by the way, this should also apply for anyone who has converted from a Locked-in RRSP to a LIF (Life Income Fund, I think) or a LRIF (Locked-in Retirement Income Fund).

[Explorer]

It is The Office of the Superintendent of Financial Institutions so why did I show OFSI? Could be dyslexia, but then it is just the middle letters reversed. A mild form, then? Try OSFI.