25% RRIF reduction in annual minimums

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On March 18, 2020, the Government of Canada announced immediate action to assist Canadians facing hardship as a result of the COVID-19 outbreak. One of the support measures is to provide flexible relief for concerned seniors who are required to redeem assets in this volatile market. Members are encouraged to read the Government of Canada’s Economic Statement to understand the new measure for annuitants of Registered Retirement Income Funds (RRIF). If you have any questions, or would like to request a reduction to your RRIF payment, please call our Contact Centre at 1.888.517.7000.

Is this payment reduction mandatory or optional?

The 25% reduction in the annual minimum payment is optional.

Are these changes effective January 1, 2020, or on a go-forward basis?

This change is applicable only for this calendar year (2020) and only in those situations where the full minimum amount has not yet been paid to an annuitant.

What happens if annuitants have already taken their annual minimum payment prior to March 2020?

This change will not apply to them as they have already received their 2020 minimum required payment

For members who have already received their full 2020 minimum, can they recontribute the 25% reduction back to their RRIF?

CRA has indicated that at this time they are not permitting the 25% reduction to be recontributed.

How will the reduced minimum apply for annuitants with scheduled payments?

Annuitants may request to reduce their remaining schedule of payments to meet the reduced minimum amount.

Are Life Income Fund (LIF) minimum payments included in this?

Yes, LIFs would follow the same minimum requirements and options.