Locked-in Retirement Accounts (LIRA)
A LIRA is also known as a Locked-in RRSP. Money in a LIRA is to be invested for the purpose of purchasing a life annuity contract or transferring it to another vehicle that provides retirement income. A LIRA cannot be withdrawn, or transferred except as permitted by the applicable legislation.
A LIRA is similar to an RRSP in that it is an accumulation plan. Members would transfer their locked-in money from a DC pension plan into a LIRA if they do not want to receive retirement income yet, or are not allowed to commence retirement income yet under the rules of the applicable legislation.
A LIRA is distinct from an RRSP in that the locking-in rules under pension standards legislation applies to a LIRA. In addition, pension standards legislation may impost other requirements, such as spousal rights and creditor protection, which will vary by jurisdiction.