The Saskatchewan Department of Justice has announced proposed legislative amendments that will give retirees more control over their retirement income.
Amendments to The Pension Benefits Regulations will enable a registered retirement income fund (RRIF) to be recognized as a pension choice. People with locked-in retirement accounts will have the option of converting their pension funds into RRIFs in the same way registered retirement savings plans (RRSPs) are converted to RRIFs.
The change will remove the withdrawal limits imposed by current regulations on life income funds (LIF) and locked-in retirement income funds (LRIF). Instead of a fixed monthly income, or an income that varies with investment returns, retirees will have the ability to determine for themselves their level of income.
Money in existing LIFs and LRIFs will become eligible for conversion to RRIFs. Pension money will continue to be locked-in until retirement.
The changes will take effect once the amdendments have been finalized.