Locked-In Retirement Account (LIRA)

What Is It?

The Locked-In Retirement Account or LIRA is a type of account in which you can contribute towards a retirement plan. Created in 1990 by the Regulation on Supplementary Pension Plans, LIRA was designed to protect individuals against the temptation to withdraw money contributed to a company pension when, for example, that person leaves the company. A LIRA locks in your funds until you have reached the retirement age.


Where, specifically, can the amounts come from for a LIRA contribution?
You can transfer the funds from a company pension fund, a pension contract as defined in section 30 of the Act respecting Supplementary Pension Plans or another LIRA.


How can I use amounts accumulated in a LIRA?
There are several ways of either transferring or withdrawing amounts from a LIRA.
Amounts can be transferred to another LIRA, to a Life Income Fund or to a retirement plan; otherwise, they can be converted into a life annuity where 60% of the annuity goes to your spouse in the event of death; in case of disability decreasing your life expectancy, you may receive accumulated amounts through cash payments or installments; in the event of death, the accumulated amounts will be paid to your spouse, or to your estate if you do not have a spouse.

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