Income from a simplified pension plan (SIPP)

An SIPP does not pay a pension. To receive income, the amounts credited to the locked-in and not locked-in accounts must be transferred to qualifying transfer instruments.

With a locked-in account

The member can, either directly or following a transfer from the locked-in account to a locked-in retirement account (LIRA):

  • purchase a life annuity
  • transfer sums to a life income fund (LIF)
  • purchase a life annuity with a portion of the sums and transfer the remainder to an LIF

With the not locked-in account

The member can, directly or following a transfer from the not locked-in account to a registered retirement savings plan (RRSP):

  • transfer the sums to a registered retirement income fund (RRIF)
  • purchase an annuity

The member can also make a cash withdrawal of all or some of the funds credited to the not locked-in account.

Evaluating member's income

The member's income will depend, among other factors, on:

  • the contributions made to his or her accounts
  • the investment income earned on the funds in the accounts
  • interest rates when the member retires

Transfer is required

When the member's active plan membership ends, at retirement or for any other reason, the member cannot leave accumulated benefits in the plan. They must be transferred.
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