HALIFAX – The provincial government has made changes to pension regulations affecting Nova Scotians.
The government says it will now be easier for people to withdraw money from their pensions during tough financial times.
A person’s ability to take out money from their pension has always been determined by annual income. Before the changes, a pensioner would only qualify for access by making $21,000 a year or less.
$21,000 was also maximum amount a person could withdraw on a yearly basis.
- The changes to the pension regulations are as follows:The qualifying yearly income will be increased to $35,000.
- The maximum amount that can be withdrawn in a year has been increased to $26,250.
- The net amount that can be withdrawn from a locked-in pension will be raised from 40% to 50%.
- Rental eviction will be an acceptable condition to unlocking pension funds.
"A number of people in the province will benefit from these amendments, which will help Nova Scotians in need pay their mortgages, rent and healthcare costs," said Finance and Treasury Board Minister Diana Whalen. "This is an important change and the right thing for government to do."
In 2007, Rodney McDonald’s PC minority government first passed plans to allow pensioners to access locked-in funds during financial hardships.
