The applicable law is determined by the origin of the amounts in the LIRA or LIF.

The LIRA is used to save money for retirement. To obtain money from an LIRA, it must first be transferred to a life income fund (LIF). However, under certain circumstances (disability, non-resident of Canada , age 65 or older, or death), it is possible to obtain a refund.

For certain transactions regarding LIRAs and LIFs, the holder may have to use one of the schedules from the Regulation respecting supplemental pension plans.

The LIF provides an income for life, that is, a retirement income until the holder's death. It also provides the option of a temporary income. At the beginning of each year, the financial institution calculates the maximum and minimum amounts that can be withdrawn from the LIF during the year. It is possible to get an estimate of the life income or temporary income that can be withdrawn using LIF Quick Calc, a calculator available as part of the Régie's online services. Under certain circumstances (non-resident of Canada , age 65 or older, or death), it is possible to obtain a refund of an LIF.

Transfer
Life income and temporary income are subject to income tax unless the amounts are transferred directly to an RRSP, in which case the tax will be deferred. The amount that can be transferred corresponds to the difference between the maximum and minimum amounts that can be withdrawn. However, other limits apply to LIF holders age 54 to 65 (see Newsletter Express 8 May 2000, page 2).

For certain transactions regarding LIRAs and LIFs, the holder may have to use one of the schedules from the Regulation respecting supplemental pension plans.

If the financial institution pays:

• amounts from a LIRA that it should not have paid
  
  or
  
• income from an LIF greater than the maximum permitted

the holder is not required to repay the amounts to the financial institution, unless the overpayment is the result of a false declaration. In addition, the holder can require the financial institution to pay him or her a penalty equivalent to the overpayment.

If there has been no bankruptcy:
LIRAs and LIFs are also unseizable if the amounts come from a plan subject to the Supplemental Pension Plans Act.

Exceptions:

• The amounts can be seized for:
  • the payment of a support debt (maximum 50%)
  • the partition of family patrimony
  • the payment of a compensatory allowance
• Sums from a plan administered by the Commission administrative des régimes de retraite et d'assurances (CARRA) that are transferred to an LIRA or an LIF can be seized.

In the case of bankruptcy, all LIRAs and LIFs are unseizable.

Exception: for LIRAs and LIFs that would have been seizable if not for the bankruptcy (for example, an LIRA for which the amounts come from the RREGOP*), the sums paid into an LIRA or LIF in the 12 months preceding the bankruptcy are seizable.