If you are less than age 55 on your termination of membership, you may elect to transfer the commuted value of your pension, including the amount in your employee contribution account, to:
- an approved, locked-in vehicle, such as another registered pension plan, or a locked-in RRSP, or
- purchase a deferred life annuity from a Canadian life insurance company.
Please note that the commuted value of your pension is based on the amount of
pension payable to you from the Plan at age 65; it does not
take into account the early retirement subsidies which are offered
under the Plan and described here.
There is no guarantee that the amount of money transferred out
of the Plan will provide you with a pension equal to the pension
you would have received had you not elected to transfer the
commuted value of your pension out of the Plan. Whether the
commuted value of your benefit will produce the benefits you
would receive if you elected to receive a deferred pension from
the Plan depends on several factors including:
- the rate of interest earned on the transferred amount up to the date you retire
- your age at retirement, and
- annuity purchase rates in effect on the date you retire.
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