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What happens if the financial institution pays amounts that it should not have paid from a locked-in retirement account (LIRA) or a life income fund (LIF)?

April 26, 2017account amounts financial institution happens life lira locked-in paid pays retirement

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What happens if the financial institution pays amounts that it should not have paid from a locked-in retirement account (LIRA) or a life income fund (LIF)?

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If the financial institution pays: • amounts from a LIRA that it should not have paid or • income from an LIF greater than the maximum permitted the holder is not required to repay the amounts to the financial institution, unless the overpayment is the result of a false declaration. In addition, the holder can require the financial institution to pay him or her a penalty equivalent to the overpayment.