The PBA also protects pension assets from seizure by creditors and they are excluded from consideration by social assistance agencies and employment insurance because of their locked-in status. However, people in financial difficulty seek access to locked-in funds to meet their immediate needs. Under certain situations under the Maintenance Enforcement Act, the Director of Maintenance Enforcement can seize locked-in funds for maintenance arrears. Unlocking assets could expose the assets to consideration by Social Assistance Agencies and Employment Insurance, as they would not be locked-in. Potentially, creditors would also be able to access the money.
Financial hardship is difficult to measure.
Limited access could be approached on a presumed hardship basis or on a discretionary basis. Using presumed hardship may result in situations where access is granted without bonafide hardship. A discretionary approach would require great resources and time and would involve subjectivity on an individual level, but would recognize catastrophic unforeseen events. Adopt a presumed hardship - formula based approach. The measure provides a temporary income.