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Pensions Division |
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Partial Refund of Member Contributions |
Subsection 29(4) of The
Pension Benefits Act, 1992 permits a plan to pay a refund of up to 50% of a
member’s contributions required to be made by the member as of December 31, 1993,
together with interest accrued to that day. The refund is available only on the
termination of membership in the plan prior to retirement. The refund may reduce the
pension payable to the member.
Please note, a pension plan is not required to offer a
partial refund of member contributions. The refund option must appear as part of the
pension plan text. As well, the provision does not apply to employer contributions or to
member contributions made, and interest credited, after December 31, 1993.
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