a certain amount can be withdrawn from a blocked account. The total value of the pension or blocked balance Please note that not all unlocking options are available from a secure pension plan or old age savings plan. The following graph contains a general description of the unlock options from which they are available and a link to the forms to be completed. A number of unlocking provisions refer to the “maximum pension income of the year” (YMPE) to determine whether funds can be released and/or what amounts can be released. The YMPE is a dollar amount that is the maximum income eligible under Canada`s pension plan and is amended annually on the basis of a legal formula. The YMPE for 2020 is $58,700. If a person has a common law spouse or partner, their consent is required before the funds can be released in the event of financial difficulties, 50% or small balances. The consent of the spouse or associated desadts is filled out by Form 2 of Schedule V of the 1985 Pension Standards Regulation (Form 2). Depending on the expected medical or disability expenses, up to 50% of YMPEs (or US$29,350 in 2020) can be released. The ASSP provides that public service pension funds can be transferred to a blocked RRSP, a life income fund or a limited life fund, so that the 1985 pension benefit regulations (PSOs) for these types of vehicles apply to all means transferred from the public service pension plan to these vehicles.
The necessary forms can be obtained from the financial institution that holds the old age savings contract. Generic versions of the forms are available on the OSFI website in Word or PDF format and specific links are available in the table of question 2 above. All other forms requested by a financial institution would be provided by them. Federally blocked pension plans include a living income fund, a limited income fund, a restricted savings plan and a landlocked pension plan included, and may hold funds from a government-regulated pension plan. The different types of blocked retirement plans are set out in the OSFI glossary you can find on our website. If the owner of the fund has not yet reached the age of 71, he can return the money to the LIF in a blocked RRSP. The age of 71 is the maximum age set by the Income Tax Act. For more information on RRSP options at age 71, please visit the Canada Revenue Agency website.