Thursday, June 7, 2018

Locked-in Funds in New Brunswick

11:15 AM


Question:

I have a plan with locked-in funds under the New Brunswick pension legislation. It shows that LIF income will be over $12,000 in her first year of retirement, but the max allowable is around $8500 in for a NB legislated plan.  Can you explain how the program appears to allow for more than the max allowable amount?

Answer:

The maximum is higher in 2017 because the program uses in this case the one-time maximum special withdrawal rule in New Brunswick pension legislation of the lesser of 3 times the maximum or 25% of the account value to meet the retirement income goal.

0 comments:

Post a Comment

 

© 2018 Risk Blog by Equisoft Inc. All rights reserved. Designed by Templateism

Back To Top