In effect since April 1, 2020, the regulatory changes made to Nova Scotia LIRA and LIF addenda are as follows. For LIF owners The calculation of the maximum temporary income that may be paid during a fiscal year out of a LIF is now affected by bridging benefits and other periodic income. In addition to considering temporary income paid from a pension plan or from other LIFs in the calculation of the amount allowed to be paid as temporary income, bridging benefits and any other periodic income paid from a pension plan or annuity are now also considered. This means that bridging benefits and any other periodic income paid from a pension plan or annuity may now reduce the amount allowed as temporary income. For LIF and/or LIRA holders Precisions have been made regarding the circumstances in which the death benefit payable on death will not be payable to a spouse (when said spouse is living separate and apart from the holder without a reasonable prospect of resuming cohabitation): - the written agreement or the court order, under which the spouse would not be entitled to receive an amount under the LIRA or LIF, can be an agreement or a court order that disentitle or not expressly or impliedly entitle the spouse to receive the amount;
- the written agreement or the court order must be entered into or issued before the date of the holder’s death;
- the written agreement must be respecting the division of the LIRA or LIF.
These changes have no impact on your clients’ investments and neither you nor your client must take any action.
Addenda Availability
The new versions of the LIRA addendum and the LIF addendum are available on Webi. Communication and Client list As requested by regulatory authorities, clients affected by these changes will receive an explanatory letter as well as a copy of the new addenda for their file.
Change effective since July 1, 2021
As of July 1, 2021, it is no longer required to submit withdrawal requests for financial hardship from a Nova Scotia locked‑in retirement account (LIRA) or a life income fund (LIF) to the Superintendent of Pensions, Province of Nova Scotia. These requests must now be submitted directly to the financial institution holding the account. Also, if the LIRA or LIF balance is inferior to $500 after the withdrawal for financial hardship, the balance could be withdrawn from the account upon the holder’s request.
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