Amendments Streamline Process for Unlocking Retirement Funds

Nova Scotians want to have financial peace of mind when facing challenging circumstances.

That is why government introduced amendments to the Pension Benefits Act today, April 6, that will make it quicker for Nova Scotians who need it to access locked-in retirement accounts or life income funds.

“The changes I am introducing today and the regulations that will follow will mean Nova Scotians experiencing financial hardship can work directly with their financial institutions to access these funds,” said Finance and Treasury Board Minister Labi Kousoulis. “This will save significant application processing time for Nova Scotians in need, as they will no longer need prior approval from the superintendent of pensions.”

Currently, an applicant who wishes to unlock funds held in a locked-in retirement account or a life income fund for reasons of financial hardship must apply to the superintendent of pensions, wait to receive an approval letter and then bring that approval letter to their financial institution.

The amendments and regulations will enable financial institutions to directly approve applications and less paperwork will be required to process requests. The $116.65 government fee to process applications is also being eliminated.

The changes will go into effect upon proclamation to allow time to complete the regulations and for financial institutions to prepare.

Quick Facts:

• when a pension plan member leaves their employer, they can arrange to have their pension fund entitlement transferred into a locked-in retirement account or a life income fund
• the amendments are consistent with government’s commitment to reduce red tape and the approaches taken in other provinces