Understanding the Basics - Servus Credit Union

Minimum Payment, Age More Than 77From age 78 on, the following percentages are applied tothe value of all RRIFs at the beginning of the year, basedon the age at that time:Age % Age %78 8.33 87 11.3379 8.53 88 11.9680 8.75 89 12.7181 8.99 90 13.6282 9.27 91 14.7383 9.58 92 16.1284 9.93 93 17.9285 10.33 94 and older 20.0086 10.79Investment ChoicesRRIFs are available in all the same types as RRSPs (see pages12-14), including self-directed. The actual investments in aself-directed RRSP can be transferred to a self-directed RRIF.Shorter term investments provide some protection againstthe future inflation of interest rates.Other Questions to AskAsk about fees, deposit insurance protection and estatepreservation on any RRIF before you invest. RRIFs are fullytransferable between carriers.Life Income Fund (LIF)A LIF holds funds locked-in under pension legislation. Thesame mandatory minimum payments apply as with a RRIF;however, with a LIF there is also a maximum payment amountper year. LIF governed under Federal PBSA, 1985, NewBrunswick and Ontario pension legislation, the maximumpayment restriction continues to age 90. LIF governed underAlberta pension legislation, the maximum payment restrictioncontinues to age 85. LIF governed under Newfoundland andLabrador pension legislation, the LIF must be converted to anLRIF or a life annuity before the end of the year the annuitantattains age 80. LIF governed under Saskatchewan pensionlegislation, the LIF must be converted to a SK RRIF or alife annuity before the end of the year the annuitant attainsage 80. LIF governed under British Columbia, Manitoba,Nova Scotia and Quebec pension legislation, the maximumpayment restriction continues for the life of the contract.UNDERSTANDING ALL THE BASICS 31