What is the news?
Ontario is consulting on proposed amendments to Regulation 909 under the Pension Benefits Act. If adopted, the rules would allow an owner to unlock money in an Ontario-regulated Life Income Fund (LIF) or locked-in Registered Retirement Income Fund after reaching the earliest date on which they could receive a pension under a pension plan that supplied money to the account.
The proposal would also remove the age-55 requirement for small-balance unlocking from a Locked-In Retirement Account (LIRA). In 2026, the owner’s combined balance across all applicable Ontario locked-in accounts would need to be below 40% of the Year’s Maximum Pensionable Earnings, or $29,840.
- Status
- Proposed—not yet in force
- Comment period
- Closed October 2, 2026
- 2026 small-balance threshold
- Less than $29,840 in aggregate
- Start date
- Not announced
Who is affected?
The proposal may affect people whose retirement money came from an Ontario-regulated pension plan and is now held in a LIF, locked-in RRIF or LIRA. The governing pension jurisdiction matters; simply living in Ontario does not necessarily make an account subject to Ontario’s rules.
For LIFs and locked-in RRIFs, eligibility would depend on the earliest pension-start date under the originating pension plan. For small-balance LIRAs, the threshold would be based on the total across the owner’s applicable locked-in accounts—not each account separately. Spousal consent would generally still be required where applicable.
What is the potential impact?
An eligible owner could apply through the financial institution holding the account to withdraw or transfer all or part of the unlocked balance. A qualifying transfer to an RRSP or RRIF can preserve tax deferral, while a cash withdrawal is generally taxable income in the year received.
More access can improve flexibility, but unlocking can also reduce future retirement income and a spouse’s potential survivor entitlement. A taxable withdrawal may affect income-tested benefits and credits, and money taken out may lose the creditor protection that applied inside the locked-in account.
What should you do?
If this proposal affects you, confirm the jurisdiction of your account and the earliest pension age under the plan that supplied the funds. Gather recent statements for every Ontario locked-in account before assessing the small-balance threshold.
The comment period closed October 2, 2026, and no start date has been announced. Before making a withdrawal or transfer if the rules are finalized, ask the financial institution about tax withholding, transfer choices, fees, spouse-consent requirements and the effect on survivor rights. Consider tax and benefits advice if a large withdrawal could change GIS, OAS recovery tax or other income-tested support.
Sources and current guidance
General educational information only—not pension, financial, tax, or legal advice. Confirm the rules governing your account with your financial institution or pension administrator before making a decision.