Members who have Nova Scotia Life Income Funds (LIFs) and/or pension assets subject to the Nova Scotia Pension Benefits Act may be affected by several changes that came into effect on April 1, 2025.
Key changes include:
Introduction of New LIF – All new Life Income Funds (LIFs) will be governed by Schedule 4A. No further sales or deposits can be made to existing LIFs under (old) Schedule 4 but will be administered until January 1, 2035.
50% Withdrawal Option at Age 55 – Individuals transferring locked in pension funds to a LIF have a one-time opportunity to unlock up to 50% of the market value of their assets.
Temporary Income Provisions – Elimination of the temporary income provisions for LIFs established after April 1, 2025.
Expanded Transfer Sources –Transfers into Locked-In Retirement Accounts (LIRAs) or LIFs can now include funds from The Public Service Superannuation Plan and The Teachers’ Pension Plan.
Non-Residency and shortened life expectancy withdrawals – Members of a pension plan can withdraw their pension assets due to circumstances of non-residency of Canada and shortened life expectancy.
Age Reduction for Small Withdrawals – The eligible age for small amount withdrawals from LIRAs or LIFs is reduced from 65 to 55 years.
For more information on these changes, visit Pension regulation notices - Government of Nova Scotia