Changes to Pension Accessibility, Unlock a Portion of Your Pension at Retirement.

October 25, 2024 nnpress

Nova Scotians aged 55 and older will soon have more flexibility to access and manage their retirement savings.

The Province is updating the Pension Benefits Act and its regulations to align with other jurisdictions, effective April 1, 2025.

“Nova Scotians who invest in a pension during their working years should be able to access and manage their money as they prepare for retirement,” said Finance and Treasury Board Minister Timothy Halman. “Most provinces and territories already provide people with this level of flexibility so they can plan accordingly and maintain their standard of living.”

Under the current rules, most money transferred out of a pension plan remains locked in and must be used to provide a periodic income; it cannot be taken out as a lump sum unless certain conditions are met.

The new rules will include updated conditions for unlocking pension funds, including the one-time ability for Nova Scotians aged 55 and older to unlock up to 50 per cent of their locked-in funds when transferring to a life income fund (LIF).

Other administrative improvements include eliminating the need to file LIF contracts and amendments with the superintendent of pensions and a new requirement for pension-plan statements to be sent to former and retired members every two years. Previously, these statements were only required to be sent annually to active members.

Quick Facts:

people who purchase a LIF contract with temporary income provisions prior to April 1, 2025 will have the option to retain that contract until 2034 or transfer to a new contract under the new rules
the ability to unlock up to 50 per cent of the funds will reduce the need to receive temporary income, which people between 55 and 64 have been able to receive from their locked-in funds since 2003