The Nova Scotia government is updating the provincial Pension Benefits Act to allow the unlocking of pension benefits.
Effective April 1, 2025, plan members aged 55 and older will have a one-time ability to unlock up to 50 per cent of their locked-in funds when transferring to a life income fund.
Under the current rules, most money transferred out of a pension plan remains locked in and must be used to provide a periodic income, according to a press release.
The updated legislation will also eliminate the need for plan members to file LIF contracts and amendments with the superintendent of pensions. In addition, administrators will be required to send plan statements to former and retired members every two years instead of annually.
“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, in the release. “Most provinces and territories already provide people with this level of flexibility so they can plan accordingly and maintain their standard of living.”
Read: Newfoundland and Labrador residents can now unlock pension benefits