Locking-In Committee

The CAPSA Locking-in Committee began in April 2002 to develop recommendations for prescribed exemptions from the locking-in principle to be included in CAPSA’s Model Pension Law. These recommendations were presented to CAPSA at its 67th semi-annual meeting.

Whereas the general principle in the Model Law requires that pensions must be locked-in to provide a lifetime income, there is also a provision that prescribed amounts would not be subject to the locking-in principle. CAPSA accepted the recommendation of the Committee that unlocking should be permitted in cases of shortened life expectancy, nonresidency and for small amounts.