A Life Income Fund (LIF) is a type of registered income fund that is used to hold pension funds and payout retirement income. It works exactly like when you Receive UBC FPP LIF-Type Payments, however, the locked-in funds in the FPP are transferred to an external financial institution. Locked-in FPP contributions must be transferred to a LIF that is registered under the BC Pension Benefits Standards Act. Any locked-in funds transferred into the Plan will remain under the originating pension legislation.
You may use all, or part of, the locked-in account balance to set up an income stream to meet your personal needs. The payments can be set up for any amount between the applicable statutory minimum and maximum amounts per calendar year.
The minimum required amount of withdrawal is based on your age as of January 1st each calendar year. Alternatively, you may use your spouse’s lower age, if applicable, to determine the minimum payment required and potentially reduce your tax obligation.
The maximum annual limit is the greater of:
- the investment earnings in the previous calendar year, or
- the withdrawal amount based on your age as at January 1st each calendar year
Forms Required
To transfer your funds to an external LIF, complete the following forms:
- Direct Transfer of a Single Amount (T2151) or an equivalent form from your external LIF provider
If you have a spouse, complete the following form:
- Form 3 – Spouse’s Consent to a Transfer to a Life Income Fund or Establishment of a Life Income Type Benefits Account
- View detailed instructions on how to complete Form 3.
If you do not have a spouse, complete the following form:
If you are a non-resident, complete the following form:
Please submit the completed forms to:
Sun Life, Group Retirement Services
PO Box 11001 Stn CV
Montreal, QC
H3C 3P3