Locked in Funds (LIF)

A LIF combines the features of a Life Annuity and an RRIF, specifically created to allow members to access locked-in RRSPs.

Investment Options

• Variable (floating interest rate)
• 6 months to 5 years Fixed—Minimum deposit of $500

Features

• Three sources of funds for a LIF are Registered Pension Plans, Locked-in RRSP’s, Locked-in Retirement accounts.
• Only “Locked-in” funds can be received into a LIF and cannot be combined with “Non Locked-in” funds.
• The LIF functions like a RRIF, providing flexibility in investment decisions and payment
• Each year the member must withdraw at least the minimum payment based on the members’ age and the amount of the investment.
• Amounts withdrawn are taxable.
• An annual maximum payout total per year is applicable.
• Payments may be made monthly, quarterly, semi-annually, or annually.
• Funds are fully guaranteed by Credit Union Deposit Guarantee Corporation

Interest

• Variable RRIF interest is accrued daily and paid monthly.
• Interest is compounded annually on the anniversary date for fixed rate RRIFs.

Pricing

• No administration fees, however a transfer-out fee may apply.