Locked-in accounts contracts and addendums

  1. If a locked-in registered retirement savings plan or life income fund (LIF) was established before the changes were made to the unlocking rules, can the financial institution or advisor update the contracts by means of a new or revised addendum or is a new contract required?

    Subject to the terms of the existing contract, existing locked-in vehicles can generally be amended to reflect any new provisions in the Pension Benefits Standards Regulations, 1985 (PBSR). Financial institutions and clients can generally amend existing agreements via an addendum, rather than drafting entirely new contracts. Any new or amended contract must incorporate the current requirements in the PBSR.

  2. Can a financial institution or advisor charge penalties for unlocking early?

    There is nothing in the Pension Benefits Standards Regulations, 1985 that prevents financial institutions or advisors from charging transfer fees for locked-in retirement savings plans. The financial institution that holds the locked-in retirement savings plan should be contacted for details.