CARP and the Ontario Coalition of Independent LIF-Holders applaud PC leader John Tory’s announcement today that, if elected, a PC government will allow Ontarians to unlock 100% of their Life Income Funds (LIFs) – half at age 55 and the full amount at age 65.

The two organizations say they fully support this policy that will bring Ontario into the 21st century.

In a statement, they said “The PC Party heard us and its decision represents another milestone in our alliance’s campaign to have LIFs unlocked 100% in Ontario. Mr. Tory’s pledge propels the momentum to unshackle LIF-holders that began with NDP MPP Andrea Horwath’s Bill to unlock LIFs 100% which was introduced in the Ontario Legislature in December 2006, in conjunction with CARP and the Ontario Coalition of Independent LIF-Holders.”

Under current Ontario legislation, when individuals retire/leave a job which has a registered corporate or occupational pension, the terms of the pension plan may allow them to transfer their portion of the pension into a Locked In Retirement Account (LIRA) and subsequently a LIF. However access to the principal in the LIF is denied to the LIF holders as it is locked-in for life or to age 90.

Like savings in any registered pensions, LIFs or LIRAs are the individual’s money, made up of their contributions plus those of the company or occupation as deferred salary. It is not government money, say CARP and the Ontario Coalition of Independent LIF-Holders.

A LIF has a mandated maximum yearly withdrawal limit unlike a RRIF which has none. This ensures that the average Ontario male cannot access about two thirds of his LIF until death (average male 79 and female 84) at which moment the LIF is completely unlocked for their spouse. It also means that most Ontarian may not live to 90 at which age all of the LIF can be unlocked.

Currently, 100% unlimited access to the retirees’ LIF money in Ontario may be available by submitting a lengthy request form to the Financial Service Commission of Ontario (FSCO). The agency requires a payment of $200 to $600 from successful applicants in order to access their own money. The appeal may be granted only if the applicant can prove dire health or financial circumstances.

More information on LIFs and the campaign by CARP and its allies to have direct access to 100% of the principal in a LIF is available on the CARP Web site at www.carp.ca.

CARP is Canada’s Association for the Fifty-Plus with 250,000 members in Ontario and 400,000 members across the country.

The goal of the Ontario Coalition of Independent LIF-Holders is to persuade the Ontario government to unlock LIFs 100%.