Locked-in plans are essentially pension plans that have been transferred to an individual account when an employee leaves a company. Because each locked-in plan may be governed by different pension regulation, they can be confusing for clients. To help you answer client questions and manage the complex administrative requirements for locked-in plans, this guide contains the key information and resources you will need.

IN THIS GUIDE:

Overview of locked-in plans ....................................................................................... 2

Locked-in plans: Account types offered by jurisdiction ................................. 3

Transferring a locked-in plan to Mackenzie Investments ..............................4

Age of conversion: Retirement plans to income plans ................................... 5

Annual minimum payout ............................................................................................. 6

Annual maximum payout ............................................................................................ 7

Special unlocking provisions .............................................................................................8

One-time unlocking options ....................................................................................... 9

Locked-in plans at marriage breakdown ............................................................ 10

Websites of pension authorities in Canada ......................................................... 11

ADVISOR ADMINISTRATIVE GUIDE:LOCKED-IN PLANSKey information for effective plan management

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Many of your clients may work at firms that offer pension plans (Registered Pension Plan) whereby funds are set aside by the employer, the employee themselves or both, to provide a pension at retirement. After a certain period of time, all the money in the plan becomes fully vested, which means the employee is entitled to the money.

When employment is terminated, the employee has the option of leaving the money in the pension plan or transferring the funds to a locked-in plan*, where they can invest according to their own objectives. However, money cannot be withdrawn from a locked-in plan until normal retirement age (or earlier, if the Registered Pension Plan permits).

Employment is terminated

Proceeds of RPP are locked in*

Funds must be transferred to a locked-in plan*

How locked-in plans are governed

All locked-in retirement plans are governed by pension regulation in the province in which a client was employed. If a client was employed by a federally regulated industry, by the Federal Government, or worked in one of the three territories, the plan would be regulated by the federal Pension Benefits Standards Act (PBSA). Prince Edward Island currently does not have legislation in place regarding locked-in plans.

Overview of locked-in plans

Locked-in retirement plans shelter savings until

normal retirement age

Depending on the clients’ age and eligibility, funds from an RPP can be transferred into a locked-in retirement plan or locked-in income plan.

Locked-in income plans allow investors to withdraw income

after a certain age, typically 55

RPPLIRA

LRSPLIF

LRIF

PRIF

*Some of the proceeds of an RPP may not require to be locked-in depending on the terms of the plan.

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Because locked-in plans are governed by provincial or federal regulations, similar plans may have different names.

The following table describes the different types of locked-in retirement plans and locked-in income plans, and provinces in which they are offered.

Account type

Definition Offering by pension jurisdiction

BC AB SK MB ON QC NB NS NL Fed

LIRA Locked-in Retirement Account – an RRSP designed to shelter Registered Pension Plan (RPP) savings until normal retirement age or earlier if the RPP permits. (Similar to an LRSP)

LRSP Locked-in RRSP – an RRSP designed to shelter Registered Pension Plan (RPP) savings until normal retirement age or earlier if the RPP permits. (Similar to a LIRA)

RLSP Restricted Locked-in RRSP – a locked-in RRSP designed to accept transfers from RLIF for clients who are younger than age 71.

LIF* Life Income Fund – a form of RRIF in which a client can transfer savings from an RPP, LIRA or LRSP in order to receive income payments.

LRIF** Locked-in Retirement Income Fund – a form of RRIF, similar to a LIF in which a client can transfer savings from a RPP, LIRA or LRSP in order to receive income payments.

PRIF Prescribed Retirement Income Fund – a form of RRIF, similar to a LIF in which a client can transfer their RPP or LIRA account to in order to receive income payments. The PRIF differs from a LIF or LRIF in that there is no annual maximum amount limit.

RLIF Restricted Life Income Fund – a form of RRIF in which existing LIF or locked-in assets from a federally regulated plan can be transferred to (at age 55 or older), where a client can unlock up to 50% of the existing assets and transfer the unlocked amount to an RRSP or RRIF. The transfer must occur within 60 days of establishing the RLIF.

*LIF plans may exist for Saskatchewan but new plans are no longer offered.**LRIF may exist for Ontario but new plans are no longer offered.

Locked-in plans: Account types offered by jurisdiction

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This administrative guide refers to the applications and forms below. Click on an image to view.

Transferring a locked-in plan to Mackenzie Investments

• LifeIncomeFund•Locked-inRetirementIncomeFund

•RestrictedLocked-inSavingsPlan

•RestrictedLifeIncomeFund

• InvestmentAccount• RetirementSavingsPlan• RetirementIncomeFund• Locked-inRSP/Locked-inRetirementAccount

Multi-planAPPLICATION

Multi-plan Application AP1008

To open a Locked-in Account at Mackenzie Investments

Transfer Authorization for Registered Investments (rrsp, lira, lrsp, rrif, lrif, lif, rlif, rlsp, prif, tfsa)•This form can be used for transferring the registered plans listed above except (1) rrif to rrsp transfers, (2) rrif or rrsp to tfsa transfers,

(3) tfsa to rrif or rrsp transfers, (4) transfers due to death and (5) transfers due to marital breakdowns.•Dataenteredonthisformmaybescannedandstoredelectronically.Pleaseprintneatlytoensurecompleteness,accuracyandmachine-readability.

receiving institution Name Contact Name

( )address telephone Number

( )City Province PostalCode FaxNumber

GroupPlanNumber(ifapplicable) ClientAccount/PolicyNumber

A:ClientIdentification

B:ReceivingInstitutionInformation

For use by Mutual Fund Brokers/Dealers only

MackenzieFinancialCorporation,asagentforB2BTrustco,agreestoadministeralllocked-infundstransferredunderthistransferauthorizationinaccordancewiththegoverningpensionlegislationindicatedinSectionEbelow.Anysubsequenttransferoftheselocked-infundstoanothertrusteeorfinancialinstitutionwillbemadeonlytoanotherregisteredplan,whichwillcontinuetobeadministered inaccordancewith the requirements indicatedbelow.No transfer of locked-in fundswill bepermittedunless thereceivingplanisappropriatelyregisteredandincompliancewiththeapplicablepensionlegislation,regulationsandtheIncomeTaxact (Canada).

RelinquishingInstitutionName GroupPlanNumber(ifapplicable)

Address ClientAccount/PolicyNumber

City Province PostalCode

Transfer: (check one box only for asset transfer instructions and an additional box if asset list is attached) all in kind (as is) CashbalanceonlyasatdateoftransferbyRelinquishingInstitution partial*; see list below or check here if list attached all in cash* all assets*, but mixed in cash and in kind; see list below or check here if list attached*Please refer to statement in bold in Client Authorization section below.

C:Client Directionto RelinquishingInstitution

Locked-InConfirmation

DealerName DealerNumber DealerAccountNumber

( ) ( )agent Name agent Number Business telephone Number Business fax Number

Investment Instructions:

investment Name Symbol %/$ amount rrsp spousal

rrsp lrsp rlsp

rrif spousal

rrif lrif prif

lira lif

rlif tfsa

Registered Type:

investment amount Symboland/orCertificateNumberorPolicyNumber InvestmentDescription

in Kind in Cash shares/Units Dollars

in Kind in Cash shares/Units Dollars

D:Client Authorization

Iherebyrequestthetransferofmyaccountanditsinvestmentsasdescribedabove.* wheRe I hAve RequesTed A TRAnsfeR In cAsh, I AuThoRIze The lIquIdATIon of All oR pART of my InvesTmenTs And AgRee To pAy Any ApplIcAble fees, chARges oR AdjusTmenTs.

SignatureofAccountHolder Date(DD/MM/YY) SignatureofIrrevocableBeneficiary/FormerSpouse(ifapplicable) Date(DD/MM/YY)

Account/PolicyHolderLastName FirstName Initial(s)

( )address Home telephone Number

( )City Province PostalCode BusinessTelephoneNumber

social insurance Number

1187

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MACKENZIE FINANCIAL CORPORATION - (AS AGENTS FOR B2B Trustco)

180 QUEEN STREET WEST

TORONTO ONTARIO M5V 3K1

REGISTERED PLANS DEPARTMENT

800 387-0614

866 766-6623

E:For Use ByRelinquishingInstitution Only

Registered Type: rrsp lira lrsp rrif: Qualified Non-qualified prif rlif rlsp tfsa lrif lif: Federal LIF Old LIF New LIF

spousal plan: No YesIfyes:

locked-In: No YesIfyes,locked-inconfirmationattachedLocked-infunds:$____________________Governinglegislation____________________

•Thedefaultis“unisex;”ifsex-distinct,checkhereForPlansgovernedbyManitobaPBA,ifDeathBenefitwaiverattached,checkhere •Ifspousewaiver/consentformattached, check here •ForLIFgovernedbyManitobaPBA:Isthetransferorawareofaone-timetransferundersection21.4oftheManitobaPBA: No Yes

last Name first Name initial social insurance Number

authorized B2B trustco signing Officer/agent

ForLIFgovernedbyABandONandMB PlanvalueonJanuary1:$_______________Transfersoutincurrentyear:$_______________

andLRIFgovernedbyNLandON: Transfersincurrentyear:$_______________Incomepaymentsincurrentyear:$_______________

Currentyear’sinvestmentearnings:$_______________

Original(creation)dateofplan(LRIFonly):__________________ Date(DD/MM/YY)

( ) ( )

Contact Name telephone Number fax Number

AuthorizedSignature Date(DD/MM/YY)

fM1307 1/12

Transfer Authorization for Registered Investments (TARI) FM1307

To transfer between different financial institutions in Canada

Steps to transfer from an RPP to a Mackenzie Investments locked-in account

1. Client contacts the RPP administrator of their former employer to obtain and complete administrator’s required forms.

2. Complete CRA form T2151 to transfer from an RPP to a locked-in Plan.

• Eachpensionjurisdictionrequiresaspousalwaiverbecompletedpriortotransferringout of an RPP. Forms are available on the Pension Commission’s website listed on Page 11.

3. Complete a Mackenzie Multi-plan Application (AP1008).

4. Mackenzie Investments sets up the new locked-in account.

5. Assets are transferred from the RPP administrator to Mackenzie Investments, and funds are deposited.

Direct transfer of a single amount under Subsection 147(19) or Section 147.3 CRA Form T2151

To transfer from a Registered Pension Plan (RPP) to Mackenzie Investments

1. The $ transferred is the applicant's whole or partial entitlement under:

DIRECT TRANSFER OF A SINGLE AMOUNT UNDER SUBSECTION 147(19) OR SECTION 147.3

Applicant's signature

Area III – Transferee's certification

Please transfer the RPP or DPSP single amount to my registered retirement income fund (RRIF).

You can use this form to record a direct transfer. Tick the boxes that apply to you, and see the back of this form for instructions and definitions.Legislative references on this form are from the Income Tax Act.

2. The plan to which the single amount has been transferred is registered under the Income Tax Act.

Transferee's name

I certify that the information given on this form is, to the best of my knowledge, correct and complete.

1. We have received $ , and we have credited it to:

Address

Part B – Transfer from an RPP

Area I – Applicant

Part A – Transfer from a DPSP

Part C – Description of amount to be transferred

Part D – Identification of the RRSP, RRIF, RPP, or DPSP the funds are being transferred.

Please transfer my whole entitlement under the plan identified in Part A or B.

I am the RPP member's current or former spouse or common-law partner requesting a transfer because of a breakdown of the marriageor common-law partnership.

If the transfer is from a deferred profit-sharing plan (DPSP), complete Parts A, C, and D below.If the transfer is from a registered pension plan (RPP), complete Parts B, C, and D below.

Transferee's address

Name Social insurance number Telephone

Canada Revenue Agency's DPSP registration number Employer's name

Employer's addressPlan number

Canada Revenue Agency's RPP registration number Employer's name

Employer's addressPlan number

Please transfer $ , which is my partial entitlement under the plan identified in Part A or B.

Please transfer the RPP or DPSP single amount to my registered retirement savings plan (RRSP).

Individual plan number Name of plan and approved specimen plan number

Name of fund and approved specimen fund numberIndividual fund number

Please transfer the RPP or DPSP single amount to my account as a member of this RPP.

Please transfer the DPSP single amount to my account as a beneficiary under this DPSP.

Canada Revenue Agency's registration number of RPP or DPSPEmployer's name

Date

I am an employee or former employee who is a beneficiary of the DPSP.

I am a member of the RPP.

I am a current or former beneficiary spouse or common-law partner requesting a transfer because of the death of a member of the RPP.

3. A lock-in provision applies to $ of the amount we transferred from the RPP identified in Part B of Area I, under thePension Benefits Standards Act or a provincial pension benefits act (specify the act).

2. We have transferred $ according to:

subsection 147(19) (a DPSP lump-sum transfer to an RPP, an RRSP, a RRIF, or another DPSP); or

the DPSP identified in Part A of Area I, or the RPP identified in Part B of Area I.

Area II – Transferor's certification

Transferor's name

one of the following subsections: 147.3(1) to (8) (an RPP lump-sum transfer to an RRSP, a RRIF, or another RPP).

Date Authorized person's signature

4. We did not transfer $ of the RPP single amount indicated in item 1 according to one of the following subsections: 147.3(1) to (7). We will report this amount as the applicant's income on a T4A slip.

I certify that the information given on this form is, to the best of my knowledge, correct and complete.

the applicant's RRSP identified in Part D of Area I;

Date Authorized person's signature

Does not apply

the applicant's RRIF identified in Part D of Area I;

the applicant's account as a member of the RPP identified in Part D of Area I; or

the applicant's account as beneficiary under the DPSP identified in Part D of Area I.

I am a current or former beneficiary spouse or common-law partner of an employee or former employee who was the beneficiary of the DPSPrequesting a transfer because of a breakdown of our marriage or common-law partnership.

3. We will administer the amount indicated in item 3 of Area II as a locked-in amount under the recipient fund or plan.4. We will issue a receipt for the amount indicated in item 4 of Area II.

I am a current or former beneficiary spouse or common-law partner requesting a transfer because of the death of an employee or formeremployee who was the beneficiary of the DPSP.

(Vous pouvez obtenir ce formulaire en français à www.arc.gc.ca/formulaires ou au 1-800-959-3376.)T2151 E (08)Copy 1 – For the transferor (all areas completed)

Restore Instructions Help

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Age of conversion: Retirement plans to income plans

Once a client reaches a certain minimum age, they can choose to convert their locked-in retirement plan into a locked-in income plan, which allows them to start withdrawing money from the plan.

While the minimum age depends on their jurisdiction, all clients must convert their locked-in retirement plan to a locked-in income plan by the end of the year they turn age 71.

Pension jurisdiction

Account type(s) Minimum age LIF required to convert to Life Annuity at age 80

Fed LIF RLIF

None 55

BC LIF 55*

AB LIF 50

SK LIF PRIF

None 55*

MB LIF PRIF

None 55

ON LIF LRIF

55* None

QC LIF None

NB LIF 55

NS LIF 55*

NL LIF LRIF

55* 55*

*Age can be less than minimum age if RPP permits.

Steps to transfer a locked-in plan from another financial institution to Mackenzie Investments

1. Complete Transfer Authorization form (FM1307) to transfer a locked-in plan.

• Acopyofthespousalwaiverusedtoestablishtheaccountattherelinquishingfinancialinstitution is to be provided to the receiving financial institution or a new spousal waiver must be completed and can be obtained from the Pension Commission’s website listed on Page 11.

2. Complete a Mackenzie Multi-plan Application (AP1008).

3. Mackenzie Investments sets up account.

4. Assets are transferred from the other financial institution to Mackenzie Investments, and funds are deposited.

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As we noted above, if your client is 72 years and older, the formula to determine the minimum amount to be paid out annually is: Account value multiplied by a prescribed percentage.

Age at start of year Prescribed percentage*

72 7.48%73 7.59%74 7.71%75 7.85%76 7.99%77 8.15%78 8.33%79 8.53%80 8.75%81 8.99%82 9.27%83 9.58%84 9.93%85 10.33%86 10.79%87 11.33%88 11.96%89 12.71%90 13.62%91 14.73%92 16.12%93 17.92%

94+ 20.00%

*For RRIFs, income plans and locked-in plans set up after the end of 1992.

Annual minimum payout

Once a client has converted their locked-in retirement plan into a locked-in income plan, the income plan must start paying out the required minimum on an annual basis, by the end of the year.

To determine the minimum amount that must be paid out, use the formulas below.

Age of client* Formula to determine minimum amount

71 and younger Account value divided by (90 minus client age)

72 and older Account value multiplied by a prescribed percentage* (see table below)

*Except for New Brunswick, all jurisdictions will permit the minimum amount to be based on the owner’s age or a spouse’s age.

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Annual maximum payout

If your client has a locked-in income plan, there may be a limit on how much money can be paid out in a year.

The method of determining the annual maximum payout varies by account type and jurisdiction:

Account type Maximum formula method Jurisdiction Maximum must be pro-rated

LIF Maximum is the greater of the value determined by CANSIM rates or prior year investment earnings

BC AB MB

Yes Yes No

LIF / LRIF Maximum is the greater of the value determined by CANSIM rates or prior year investment earnings

ON* No

LIF / RLIF Maximum is the value determined by CANSIM rates QC NB NS NL Fed

No No No Yes No

LRIF Greater of prior year or lifetime investment earnings NL SK**

Yes

PRIF No maximum SK n/a

*No new LRIF are offered but existing accounts are subject to maximum.**No new LIF and LRIF are offered, but existing accounts are subject to maximum.

Some jurisdictions may permit the full maximum payment in the year the plan was established, while others may require the maximum be prorated based on the remaining months in the year. For example, if a client established a LIF in November in a jurisdiction that required the maximum be prorated, the client would be permitted to withdraw up to 2/12 the annual maximum.

The CANSIM rate is set annually by the Government of Canada high yield bond rate at the end of November. The rate is used in the formula to calculate clients’ maximum payments.

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Special unlocking provisions

While locked-in plans can be strict with regards to withdrawals, certain jurisdictions may permit access to funds that are locked-in if any of the following situations apply:

JurisdictionShortened life Non-resident

Financial hardship

Temporary income

Small balance

Prescribed form required*

Physician certification

Prescribed form required*

CRA acknowledgement1

Prescribed form required*

Prescribed form required*

Prescribed form required*

Fed 3

BC 3

AB 3

SK2 3

MB 4

ON 4

QC 3 5

NB 3

NS 3 5

NL 3 5

*Prescribed forms are available on the website of the applicable jurisdiction. See page 11 for a list of websites.1 Written acknowledgement from CRA on non-resident status is required.2 Special unlocking applies to LIRA accounts only. Existing LIF accounts can transfer to PRIF which do not have limits on withdrawals.3 Physician certification must indicate that life expectancy has been shortened due to a terminal illness or disability.4 Physician certification must indicate that life expectancy has been shortened to less than two years due to a terminal illness or disability.5 Temporary income applies to LIF and LRIF only. Not available on LIRA.

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One-time unlocking options

Certain jurisdictions may permit a client to unlock a lump sum amount as a one-time event if the following circumstances apply:

Jurisdiction Unlock fromCircumstances and requirements

LIRA/LRSP LIF RLIF

Fed

50% may be unlocked within 60 days of establishing an RLIF if owner is age 55 or older

Requirements: • Prescribed form*

AB n/a

50% may be unlocked from LIRA at the point when a client is transferring to a LIF if owner is age 50 or older

Requirements: • Prescribed form*

SK

100% of a LIRA can be unlocked by transferring to a PRIF account

Requirements: • Prescribed form*

MB n/a

50% can be unlocked from a LIF and transferred to a PRIF if owner is age 55 or older

Requirements: • Approval from Superintendent of Pensions • Prescribed form*

ON n/a

50% can be unlocked within 60 days of establishing a new LIF if owner is age 55 or older

Requirements: • Prescribed form*

NB n/a

25% of market value or 3 times the current year LIF maximum can be unlocked and transferred to an unlocked RIF

Requirements: • Prescribed form*

*Prescribed forms are available on the website of the applicable jurisdiction. See page 11 for a list of websites.

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Locked-in plans at marriage breakdown

On marriage breakdown, the various pension acts may require that the funds remain locked-in when transferred to a spouse. They may also place limits, typically 50%, on the amounts that can be transferred from one spouse to another.

Jurisdiction Funds remain locked-in

Maximum division of pension benefit credit

Fed No limit

BC 50%*

AB 50%

SK 50%

MB 50%

ON 50%

QC 50%

NB 50%

NS 50%

NL 50%

* The Pension Benefits Standards Act does not contain a limit; however, BC’s Family Relations Act contains a default provision of 50%. A higher percentage can be transferred if stipulated by a court order.

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Websites of pension authorities in Canada

Jurisdiction Pension authority Web address*

Fed Office of the Superintendent of Financial Institutions Canada

osfi-bsif.gc.ca

BC Financial Institutions Commission of BC fic.gov.bc.ca/index.aspx?p=pension_plans/index

AB Alberta Treasury Board and Finance finance.alberta.ca/business/pensions/index.html

SK Government of Saskatchewan – Financial and Consumer Affairs Authority

sfsc.gov.sk.ca

MB Office of the Superintendent Pension Commission gov.mb.ca/labour/pension

ON Financial Services Commission of Ontario fsco.gov.on.ca/en/pensions/Pages/Default.aspx

QC Régie des Rentes Québec rrq.gouv.qc.ca/en/professionnels/cri_frv/Pages/lois_applicables.aspx

NB New Brunswick – Office of the Superintendent of Pensions

gnb.ca/0307/index-e.asp

NS Government of Nova Scotia gov.ns.ca/lae/pensions

NL Department of Finance of Newfoundland Labrador servicenl.gov.nl.ca/pensions

*Web addresses are subject to change.

GP5094 3/13

G E N E R A L I N Q U I R I E S

For all of your general inquiries, account information, or to order marketing literature and materials, please call:

ENGLISH 1-800-387-0614 416-922-3217

BILINGUAL 1-800-387-0615

ASIAN INVESTOR SERVICES 1-888-465-1668

TTY 1-855-325-7030 416-922-4186FAX 1-866-766-6623 416-922-5660E-MAIL service@mackenziefinancial.comWEB mackenzieinvestments.com

Find fund and account information online through Mackenzie Investments’ secure AdvisorAccess. Visit mackenzieinvestments.com/advisor for more information.

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