There are other reasons that you may also be able to unlock your Locked-in Retirement Account in Ontario. These reasons have to do with financial hardships you might encounter if you don’t access your LIRA. Here are the financial hardships categories that will allow you to unlock your LIRA Ontario:
- Low income or expectation that your income will become very low
- Potential foreclosure of your home
- Potential of being evicted by your landlord due to late or missed payments
- Security deposit, or first month’s rent
- High medical bills or disability related expenses
Remember to be aware of the laws and regulation regarding LIRA legislation in your province, and always reach out to an expert financial advisor to find out what is best suited for your financial situation and plan.
How to transfer your Group Pension
Many people have had a great group pension job at the job that they have recently left, now luckily with a LIRA you can transfer your group pension. There are just a couple of important step that you must follow in Canada in order to ensure you transfer your group pension properly.
Pension Transfer Agreement (PTA)
By transferring funds from your former employer’s pension plan to your new employer’s pension plan in an amount equal to the actuarial value of the benefits earned in relation to your pensionable service credits, you can increase your pension assets through a pension transfer agreement (PTA).
You might be able to transfer your pensionable service credit to your new pension plan when you leave one employer and start working for another while also enrolling in their pension plan. One way to carry out such a transfer is with a PTA. A PTA must have been signed between the Government of Canada and an outside employer in order for either party to take part in such an arrangement.
Alternatives to PTA
If your former employer is not one of the organisations with whom a PTA is listed, then the PTA may not be a legally binding contract. You must get in touch with your former employer to see if they are interested in negotiating a PTA with the Government of Canada if there is no agreement in place and you want to pursue the PTA option. You might want to look into the possibility of a Service buyback package as an alternative to a PTA (also known as elective service).
In order to increase your amount of pensionable service under the federal public service pension plan, you may enter into a legally binding agreement known as a service buyback. It might also cover any prior time spent working for the federal government or any pensionable employment with another employer.
Transferring your prior pension out of OMERS
There are plenty of options out there if you are leaving your job which has a pension with OMERS, this transfer can be done and these are your options:
- Receive a future stream of lifetime retirement income by sticking with OMERS for your pension. After turning 55, you can begin receiving a pension at any time;
- If you start working for a new OMERS employer, combine your old OMERS record with your new membership;
- Transfer your benefits to a different Canadian registered pension plan;
- Transfer your OMERS benefits’ commuted value to a locked-in retirement vehicle at the financial institution of your choosing.
- The OMERS pension’s present value, computed at a predetermined rate, is the commuted value.
Regardless of your circumstance and the direction that you want to go, our financial advisors will be happy to help you throughout this difficult process!
Transferring your prior pension out of HOOPP
There are three options available to you if you decide to leave your HOOPP employer before your pension has started:
- Defer your pension or keep it with HOOPP
- Change to another defined benefit pension plan
- Transfer to a registered retirement plan, annuity or a locked-in retirement account
Once you know that you are eligible to switch your pension out and meet all the requirements remember:
- When switching to another defined benefit (DB) pension plan. If your new employer has a DB pension plan and you are under 65, you might be able to transfer the worth of your HOOPP benefit into it. When a tax-free transfer is possible, we will, if necessary, collaborate with you and your new employer’s plan administrator.
- Transfer to a defined contribution (DC) pension plan or locked-in retirement account. You can transfer the value of your pension, if you are under 55, to a locked-in retirement account (LIRA) or, if your new employer has one, to their DC pension plan.
Locked-in Retirement Account (LIRA) Eligibility
You must be 71 years old or younger to unlock a LIRA account, but to open a LIRA account you must have an employee-sponsored pension from a former employer. If you have an employee-sponsored pension from a former employer you can decide to let them hold your pension until your retire, or you can transfer the pension to a LIRA account and safeguard it with a financial institution and use it in some cases, or invest the amount in the fund with the help of a financial planner. You are also eligible to have a LIRA account if you have a pension plan set up with your former spouse or a deceased spouse.