Locked in Agreement
The content of this website has been moved to www.fsrao.ca. Visit www.fsrao.ca/consumers/pensions/locked-pension-accounts to update your bookmarks. If the former member decides to transfer the value of pension benefits directly to escrow accounts, the Pension Benefits Act gives the individual more control over his or her pension funds. Since the money in frozen accounts comes from pension plans, the law includes restrictions to preserve the money in those frozen accounts for retirement and to provide a lifetime stream of retirement income to former members and their spouses, if any. These restrictions are commonly referred to as lock rules. When pension plan members terminate the employment relationship or plan membership, they have a number of options available to them for the treatment of their pension benefits and the value of their travel […].