CARP received the following notice from the Financial Services Commission of Ontario on Thursday December 17th 2009.
Two new FSCO pension forms that allow individuals to apply to withdraw money from their New Life Income Funds (New LIFs) effective January 1, 2010, have now been posted on the Financial Services Commission of Ontario (FSCO) website.
Anyone who transferred money to a New LIF prior to January 1, 2010 will be able to apply to withdraw in cash or transfer to their RRSP or RRIF, an additional 25% of the money that was transferred into their New LIF. Individuals must apply on FSCO pension form 5.1.1, which is now available with instructions at http://www.fsco.gov.on.ca/english/forms/pension/C-1203E.pdf
Applications must be made to the financial institution which issued the New LIF, but individuals will not be able to apply for this additional amount after December 31, 2010.
Second, anyone who transfers money into a New LIF after December 31, 2009 will have a one-time opportunity to withdraw in cash or transfer to their RRSP or RRIF up to 50% of the money transferred into their New LIF. This is an increase in the current limit, which is 25%. Individuals must apply on FSCO pension form 5.2, which is now available with instructions at http://www.fsco.gov.on.ca/english/forms/pension/C-1204E.pdf
Applications must be made to the financial institution where the individuals opens his or her New LIF. He or she will have 60 days from the date the money is transferred into his or her New LIF to make the application.
Frequently Asked Questions regarding these changes and the applications is available at http://www.fsco.gov.on.ca/english/pensions/-LIFchanges2009-FAQ.asp