Nova Scotians seek access to their own funds for relief during pandemic

Two Nova Scotians say the federal and provincial governments are blocking them from being able to use their own resources to help themselves during the pandemic.

Ottawa is spending billions of dollars supporting Canadians who are suffering financially as a result of COVID-19. The provincial government is offering millions more.

Ian Lewer of Eastern Passage and Christopher Agaiby of Sambro have locked-in retirement savings accounts, or LIRAs,  but neither has access to that money without consent from those who oversee pension regulations.

"We don't want to take the government handouts because we don't see that as a benefit," said Agaiby, a business analyst for the provincial government.

Lewer, an independent financial advisor, was more pointed in his criticism.

'I'm telling you that it's not'

"You've got all these politicians whose paycheque hasn't been impacted making decisions for folks, and they think that these [government aid programs] are sufficient, blah, blah, blah," he said. "I'm telling you that it's not."

Lewer estimated his LIRA account is worth roughly $80,000, money he said he could use now to offset more than $20,000 in losses he's suffered as a result of the pandemic.

"Gosh, it sure bothers me knowing that I've got this amount of money sitting in accounts and the government is telling me how I can access it, or how I can't access it," he said.

Agaiby is still getting a paycheque while working from home. His wife is a seasonal worker, but he said the family is struggling to keep up with the monthly bills.

"We've, unfortunately, had to defer our mortgage for three months and there's more interest being added upon that when we start to start paying it again," he said.

Agaiby said getting access to the money he received when Maple Leaf Foods left the province would be a big help.

Home improvements on hold

"It's substantial," he said. "It's enough to pay off my mortgage if I wanted it to, and then some."

He wants his money to put a roof on his home, fix the siding and install solar panels.

He's hoping the home improvements will lower his electricity bill, freeing up money his family could use each month.

The federal government and the province have mechanisms to unlock some of the funds in LIRAs but home improvements do not qualify.

The provincial program allows for limited withdrawals in cases where:

• An individual expects to earn less than $39,133 over the next 12 months.

• The mortgage on an individual's home has not been paid.

• The rent on an individual's home has not been paid.

• The individual, their spouse, or a dependent has medical expenses necessary to treat an illness or disability that isn't covered by any other program.

• An individual can apply for low income and medical/dental expenses once every 12 months and for mortgage and rental arrears once in a lifetime.

Rules unlikely to change

The province's Finance Department has considered easing the LIRA rules but isn't inclined to make changes.

"Government has reviewed the financial hardship unlocking program and feels the existing program is sufficient in providing access and protecting assets for retirement use," said spokesperson Gary Andrea.

Agaiby said the rules didn't work for his family.

"We've attempted before to try to get access to it, and we just can't," he said. "The  rules, I think, are wrong. They don't make sense because it is our money."

Lewer agreed.

"The money is sitting in account," he said. "There's no reason that I can see that the government needs to have a hand in deciding when I have access to the funds." he said.

Both men worry about the toll the financial hardship is having on their families and others.

"It's, like, the constant worry. It is taking its toll on us from a mental-health perspective," said Agaiby.