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Office of the Superintendent of Financial Institutions clarifies withdrawal limits and rules for LIFs, RLIFs and variable benefit accounts

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January 28, 2025


Canada’s Office of the Superintendent of Financial Institutions (OSFI) released an update about Life Income Funds (LIFs), Restricted Life Income Funds (RLIFs) and Variable Benefit Accounts.

Here’s what you should know:

  • There is both a minimum withdrawal amount and a maximum withdrawal amount from the account. The minimum annual withdrawal amount is determined under the Income Tax Regulations, while the maximum annual withdrawal amount is set under the Pension Benefits Standards Regulations, 1985.

  • The maximum annual income that can be withdrawn must be calculated using the following interest assumption: the monthly average yield on Canadian government marketable bonds of maturity over a ten year period (as published by the Bank of Canada) for the preceding month of November for the first 15 years of withdrawal, and 6% for the years remaining until the end of the year in which the fund or account holder, or their survivor, hits 90 years of age.

  • The amount eligible to be withdrawn from these accounts does not increase in a given calendar year if money is transferred from a locked-in RRSP or pension plan during the year.

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