Ontario’s Ministry of Finance is seeking comments on a draft regulation that would implement its budget commitment to provide all seniors receiving income from Ontario locked-in accounts with greater flexibility and enhanced access to their funds.

The draft regulation would harmonize the features of old life income funds (LIFs) and locked-in retirement income funds (LRIFs) with those of the new LIF that was introduced Jan. 1, 2008, by:

> providing account owners with a one-time option to withdraw, or transfer to an RRSP or RRIF, up to 25% of their fund balance (this option would be available during a 16-month window between Jan. 1, 2011 and April 30, 2012); and

> modifying the maximum annual income payment features of the old LIF and LRIF to mirror those of the new LIF, effective Jan. 1, 2011.

The draft regulation would also simplify and modernize the rules for locked-in retirement accounts (LIRAs) by consolidating LIRA-related provisions in a distinct schedule, similar to the schedules for other types of locked-in accounts.

Comments are due Feb. 13, 2009.

IE