Riscario

also called a locked-in RRSP

Vested benefits from a Private Pension plan can’t be received in cash until retirement. So if you leave an employee your before retirement, your vested benefits must go to a Locked-In Retirement Account (LIRA).

You get the same investment choices as regular RRSPs (managed or self-directed). Generally the same restrictions on withdrawals apply as with the original Private Pension plan.

You can (subject to the same age restrictions of an RRSP)

• transfer funds to another LIRA
• transfer funds to a LIF or LRIF
• transfer funds to another Private Pension plan (if the plan permits)
• buy a life annuity

• investment account which holds funds transferred from locked-in Defined Benefit or Defined Contribution pension plans, usually upon retirement, resignation or termination
• like RRSP but can’t make withdrawals or transfer to RRIF (since not locked in)
• must usually be at least age 55 to get an early retirement benefit
• money can go to LIF, LRIF or annuity

• a form of loft in RRSP