Pension Benefits Standards Regulations, 1985

20 (1) A locked-in registered retirement savings plan shall provide that

• (a) the funds may only be

  • (i) transferred to another locked-in registered retirement savings plan,

  • (ii) transferred to a plan if the plan permits such a transfer and if the plan administers the benefit attributed to the transferred funds as if the benefit were that of a plan member with two years of membership in the plan,

  • (iii) used to purchase an immediate life annuity or a deferred life annuity, or

  • (iv) transferred to a life income fund;

• (b) on the death of the holder of the locked-in registered retirement savings plan, the funds shall be paid to the survivor of the holder by

  • (i) transferring the funds to another locked-in registered retirement savings plan,

  • (ii) transferring the funds to a plan, if the plan permits such a transfer and if the plan administers the benefit attributed to the transferred funds as if the benefit were that of a plan member with two years membership in the plan,

  • (iii) using the funds to purchase an immediate life annuity or a deferred life annuity, or

  • (iv) transferring the funds to a life income fund; and

• (c) except as provided in subsection 25(4) of the Act, the funds shall not be assigned, charged, anticipated or given as security and any transaction purporting to assign, charge, anticipate or give the funds as security is void.

(2) Where a pension benefit credit transferred into a locked-in registered retirement savings plan was not varied according to the sex of the plan member, an immediate life annuity or a deferred life annuity purchased by the funds accumulated in the locked-in registered retirement savings plan shall not differentiate as to sex.

(3) A locked-in registered retirement savings plan shall contain a statement as to whether or not the pension benefit credit transferred pursuant to section 26 of the Act was varied according to the sex of the plan member.

(4) A locked-in registered retirement savings plan may provide that, where a physician certifies that owing to mental or physical disability the life expectancy of the holder thereof is likely to be shortened considerably, the funds may be paid to the holder in a lump sum.