If you are facing financial hardship in Canada and want to withdraw funds from your Federal Locked-in Registered Retirement Savings Plan (LRSP), Life Income Fund (LIF), Restricted Locked-In Retirement Savings Plan (RLSP) or Restricted Life Income Fund (RLIF), you may be required to complete an Attestation Regarding Withdrawal Based on Financial Hardship (Form 1) (and if you have a spouse then they may have to complete an Attestation Regarding Spouse / Common-Law Partner (Form 2). Both forms will need to be commissioned. Neighbourhood Notary can help you commission your completed Attestation Regarding Withdrawal Based on Financial Hardship (Form 1) and your spouse or partner's Attestation Regarding Spouse / Common-Law Partner (Form 2).
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What is an Attestation Regarding Withdrawal Based on Financial Hardship (Form 1)?
If you are facing financial hardship in Canada and you have pension funds you may be able to withdraw or transfer an amount from your pension based on the Pension Benefit Standards Regulations, 1985 (PBSR). Funds may be withdrawn from any combination of federally regulated pension, including:
You may meet the criteria for financial hardship withdrawal based on 2 categories: Low Income - the amount that can be unlocked is determined using a sliding scale based on your expected income. If your expected income for the current calendar year (from Jan.1 to Dec. 31) is $0, a withdrawal of up to 50% of the Year’s Maximum Pensionable Earnings (YMPE) or $32,450 in 2022 is permitted. If your expected income is 75% of the YMPE (i.e. $48,675 in 2022) or higher, you have reached the maximum limit for unlocking and are therefore ineligible. The YMPE in 2022 is $64,900. High medical or disability-related costs - For financial hardship unlocking based on medical or disability-related costs, these expected costs must be of 20% or more of your expected income for the current calendar year. You may withdraw an amount up to the full medical or disability-related costs subject to a maximum amount of 50% of the YMPE or $32,450 in 2022. The YMPE in 2022 is $64,900. |
Commissioning Your Attestation Regarding Withdrawal Based on Financial Hardship (Form 1) and Attestation Regarding Spouse / Common-Law Partner (Form 2)
Attestation Regarding Withdrawal Based on Financial Hardship (Form 1) must be filled out if you wish to make a financial hardship withdrawal. You must also fill in an Attestation Regarding Spouse / Common-Law Partner (Form 2). Completed forms must be sent to the financial institution that holds your account. To download the form and for more information about how to fill out the form, click here and/or contact your financial institution.
Once completed, your Form 1 and Form 2 must be commissioned before a commissioner of oaths. Neighbourhood Notary can help you commission your completed Attestation Regarding Withdrawal Based on Financial Hardship (Form 1) and Attestation Regarding Spouse / Common-Law Partner (Form 2).
Attestation Regarding Withdrawal Based on Financial Hardship (Form 1) must be filled out if you wish to make a financial hardship withdrawal. You must also fill in an Attestation Regarding Spouse / Common-Law Partner (Form 2). Completed forms must be sent to the financial institution that holds your account. To download the form and for more information about how to fill out the form, click here and/or contact your financial institution.
Once completed, your Form 1 and Form 2 must be commissioned before a commissioner of oaths. Neighbourhood Notary can help you commission your completed Attestation Regarding Withdrawal Based on Financial Hardship (Form 1) and Attestation Regarding Spouse / Common-Law Partner (Form 2).
DISCLAIMER: information provided in this article is for informational purposes only. It may not be up-to-date and may not be accurate. It shall not be construed as legal advice. Please contact the relevant governmental entity or organization for the most up-to-date and accurate information.
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Need help commissioning your Attestation Regarding Withdrawal Based on Financial Hardship (Form 1) and Attestation Regarding Spouse / Common-Law Partner (Form 2)?