Can I transfer money
directly from my pension plan to a prescribed RRIF?
You must be eligible to receive a pension before you can
transfer to a prescribed RRIF. The age at which you
can start your pension is determined
by the rules of your plan.
A pension plan may provide for a direct transfer of pension
money to a prescribed RRIF when you reach retirement age, but is not required to do so. A
plan could meet its obligations to you by paying you a pension directly from the plan or
by purchasing a life annuity on your behalf.
Before money can be transferred to a prescribed RRIF, your
spouse must sign a consent form. A copy of Form 1, Spouse’s Consent to Transfer to
a Registered Retirement Income Fund Contract.
How do I know if my plan will allow me to transfer money
to a prescribed RRIF?
In addition to providing you with a summary of your plan,
your plan administrator must provide you with a statement advising you of your options at
retirement or on termination of membership in the plan.
If the written material does not indicate whether you can
transfer directly to a prescribed RRIF, ask your plan administrator.
Can I transfer money from my LIRA to a prescribed RRIF?
If you money is in a LIRA, you will have the option to move
to a prescribed RRIF when you become eligible to start your pension. Before money can be
transferred to a prescribed RRIF, your spouse must sign a consent form. A copy of Form 1, Spouse’s
Consent to Transfer to a Registered Retirement Income Fund Contract.
With the money in your LIRA, you may start your pension at
age 55 or at an earlier age if the rules of the pension plan from where the money
originated allow for earlier retirement.
What early retirement rule applies to my situation?
You may use the current early retirement rule in your
former pension plan even if the early retirement rule changed after your money was
transferred from the plan. The administrator of your former pension plan can confirm the
current early retirement rule.
Can I transfer money from my pension plan to a LIRA?
You have the right to transfer pension monies from your
pension plan to a LIRA if:
- you are vested,
- you terminate membership before becoming eligible to receive
immediately a pension, and
- you terminate membership on and after January 1, 1993.
The Pension Benefits Act
also requires plans to provide a pension to the surviving spouse
of a member who dies prior to retirement. The surviving spouse has
the right to move the value of the survivor's pension to a LIRA or
to elect a lump sum refund.
As well, a division of a pension could occur on spousal
relationship breakdown. The portion of the pension to which the non-member spouse is
entitled must remain locked-in and would be transferred to a LIRA.
What is vesting?
Vesting means that you are unconditionally entitled to
receive the pension you have earned under the pension plan.
Saskatchewan legislation specifies the maximum period of
time that you must work before your pension is vested. However, some plans vest a pension
in a member earlier than the date required by legislation.
For pensions earned prior to January 1, 1994, your pension
is vested with you if your age plus continuous service in the plan total 45 years or more,
with a minimum of 1 year of continuous service. Pensions earned on and after January
1,1994, are vested when you have completed two years of continuous employment with your
employer. It is important to note that you must satisfy the vesting rule at the date of
your termination of membership.
If you are not vested, then no pension is payable to you
from the plan. If you contributed to the plan, those contributions together with interest
must be returned to you.
Can I transfer my money to a LIRA if I’m eligible
to retire or if I terminated before 1993?
A plan may offer "portability" to you if you are
eligible to commence a pension, but the plan is not required to do so by legislation. Your
options will be spelled out in your plan summary and on your termination or retirement
statement.
Can my existing LIF or LRIF contract be amended to
become a prescribed RRIF?
No. There is no limit on the amount of money you could
withdraw from a prescribed RRIF. That represents a substantial change from the current LIF
and LRIF rules. Therefore, it is important that your spouse sign the consent form prior to
the transfer of funds to a prescribed RRIF.
Can I transfer money from my LIF or LRIF to a prescribed
RRIF?
Yes. If your money is in a LIF or an LRIF you may transfer
the money to a prescribed RRIF. Before money can be transferred to a prescribed RRIF, your
spouse must sign a consent form. A copy of Form 1, Spouse’s Consent to Transfer to
a Registered Retirement Income Fund Contract.
Can my money
remain in my existing LIF or LRIF contract?
Yes.
In fact, if your spouse does not agree to sign the consent form
then you must remain in the contract or purchase an annuity. The
contractual provisions of your LIF or LRIF would remain in place.
If
I choose to remain in my existing LIF or LRIF contract, can I
transfer those assets to a LIF or LRIF contract with another
issuer?
Yes. If your LIF or LRIF contract was
established prior to April 1, 2002, you may transfer your money to
a LIF or LRIF contract offered by another issuer provided that
issuer had an eligible LIF or LRIF contract prior to April 1, 2002.
Can I transfer money from my LIRA or
registered pension plan to a LIF or LRIF?
No.
The LIF and LRIF retirement options were repealed from the
Regulations effective April 1, 2002.
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