Do these rules apply to my
pension money?
You may transfer money to a prescribed RRIF, as described
by this bulletin, if your locked-in pension money originated with a pension plan subject
to The Pension
Benefits Act (the Act) of Saskatchewan. Essentially, the Act applies to pension
plan members employed in Saskatchewan. However, there are some important exceptions.
Plans not subject to the Act include the following:
- Employee profit sharing plans, deferred profit sharing
plans, retiring allowances or ordinary (i.e., not locked-in) registered retirement savings
plans. This includes a group RRSP.
- Pension plans regulated by the federal government for
businesses operating in areas of national interest, including airlines, railways, grain
handlers, radio and television broadcasting stations and banks. Nevertheless, most
companies operating on a nation-wide basis are subject to provincial legislation.
- Pension plans for federal government employees, including
the R.C.M.P. and the armed forces.
- Some pension plans established by legislation of the
Government of Saskatchewan for its own employees, including the Public Service
Superannuation Plan, the Teachers’ Superannuation Plan and the SaskPower
Superannuation Plan.
How can I find out for sure?
Every pension plan must have an administrator. The
administrator is the person responsible for running the pension plan.
The administrator is responsible for providing information
to members and for responding to member questions about the plan. You must be provided
with a pension plan booklet explaining or summarizing your entitlements and obligations
when you join the plan. If the written material you are provided about your plan does not
indicate whether your plan is subject to The Pension Benefits Act of Saskatchewan,
ask your plan administrator.
Does it matter that my pension plan is registered in
another province?
No. All provinces in Canada, except Prince Edward Island,
have pension benefits legislation. To simplify the administration of pension plans, the
provinces have agreed to allow a pension plan to be registered in the province in which
the plurality of members are employed. As a result, only about 400 of the over 1,300 plans
in Canada with plan members working in Saskatchewan are registered with the
Pensions Division.
However, benefit standards, such as vesting and survivor
pensions, continue to be set by the jurisdiction in which you are employed. The regulator
of the jurisdiction of registration enforces the laws of other provinces. If you work in
Saskatchewan, but your plan is registered elsewhere, you should ensure that the plan
administrator understands your rights under Saskatchewan law, particularly on termination
of employment and retirement.
Can I transfer my money to a LIRA, LIF or LRIF in
another province?
If you are employed in Saskatchewan at the date you
terminate employment or retire, then Saskatchewan's
LIRA and RRIF rules will apply to your pension money no matter where you
subsequently reside.
For example, if you terminate employment in Saskatchewan
and transfer your pension money to a Saskatchewan LIRA and subsequently move to British
Columbia, your money must remain in a Saskatchewan LIRA and cannot be transferred to a
British Columbia LIRA.
However, nothing would prevent a financial institution
located in British Columbia from administering a LIRA that met the requirements of
Saskatchewan regulations.
Can I transfer my money outside of Canada?
No. The legislation does not permit an unlocking of pension
money where you reside outside Canada, nor can you transfer the money to a retirement plan
in another country. However, if you transfer your money to a prescribed RRIF
or to a Variable Benefit Account, you may
withdraw the entire amount in cash and pay the tax required by the Income Tax Act.
