Suppose the former spouse is entitled to $10,000. Of this amount, $6,000 will be frozen and $4,000 will not be frozen. If the amount is not tied, the former spouse may choose to have it transferred to a PRSP or receive a cash payment. If only part of a member`s benefits is frozen, the amount paid to the former spouse is not committed in the same way as for the member. If the former spouse does not inform the administrator of his or her payment option within sixty days of sending a request or notification, the administrator chooses the transfer vehicle and proceeds with the transfer, even if the spouse`s consent is not available. The amount to be transferred to the former spouse is frozen, unless, unlike a regular RRSP, the amounts are frozen in an LIRA and can only be used for old-age income. Amounts cannot be withdrawn from an LIRA except in certain circumstances where a refund is permitted. A person may hold an LIRA until December 31 of the year in which he or she reaches the age of 71. On the day of filing the application for commencement of proceedings, the balance of a member`s accounts in a simplified retirement plan (SIPP) is as follows: the former spouse must choose to have the amount to which he or she is entitled transferred to one of the following transfer vehicles: to obtain old-age income, the holder must transfer the IIRA to an LIF or use these amounts, to acquire a life annuity from an insurer. There is no minimum age for this type of transfer.
However, the transfer could be delayed if the investments are not yet due. The holder must make the transfer before the end of the year in which he reaches the age of 71, regardless of the maturity date of the investment.