Disability, your locked-in retirement account (LIRA) and your life income fund (LIF)

You have an LIRA

If you are deemed to be disabled, you are entitled to a refund of your locked-in retirement account (LIRA).

To obtain a refund, you must provide the financial institution with a medical certificate stating that you have a physical or mental disability due to a medical condition that reduces your life expectancy.

The refund can be made as a lump-sum payment or in several payments.

You can also transfer your LIRA to a registered retirement savings plan (RRSP). For details, consult the Canada Revenue Agency .

You are entitled to a refund or transfer even if your investments have not yet matured. However, there may be penalties.

The medical certificate

The medical certificate must be issued by a physician who is a member of the Collège des médecins du Québec  or, if the physician is outside Québec, he or she must be a member of an equivalent body.

The medical certificate does not have to mention the diagnosis or your actual life expectancy. It merely has to state that your mental or physical disability due to a medical condition reduces your life expectancy. The certificate can be a letter signed by your physician. An example follows.

You have an LIF

Your life income fund (LIF) does not have provisions for disability. However, an LIRA does. To take advantage of those provisions, you must transfer your LIF to an LIRA before the end of the year in which you turn 71.