An blurry image of employees in the office

Employees

Home » Employees » General » Reciprocal Transfer Agreements

Reciprocal Transfer Agreements

A Reciprocal Transfer Agreement (RTA) is an agreement between two pension plans that allows for the transfer of pensionable service by eligible members. The Board has entered into Reciprocal Transfer Agreements with many pension plans in Manitoba and across Canada.

To be eligible to transfer service under an RTA, you must have terminated employment under the exporting plan, be a member of the importing plan, and apply within the timelines of the specific agreement.

Process

The RTA process requires the pension plans to prepare and exchange information about your pension, including how much is available for transfer from the exporting plan and how much your service with the exporting plan would cost under the importing plan. You will then be provided with information so that you can decide if you wish to proceed. This process can take several months or longer.

If you are interested in transferring service under an RTA, you would need to complete a specific RTA form, which would be available from the administrator of the importing plan. By completing that form, you will be giving your consent for the two plans to exchange information about your pension. This would not obligate you to transfer your pension. You would make that decision once you have received the necessary information from both plans.

The exporting plan will advise the importing plan about the amount their plan has available for transfer, and will provide a history of your service, earnings and Pension Adjustments under that plan.

Once the above information is received from the exporting plan, the importing plan will calculate its cost for the equivalent pensionable service. The importing plan will provide you with the following information:

  • the amount of pensionable service available under the exporting plan,
  • the amount of pensionable service that can be purchased under the importing plan,
  • the anticipated increase in your monthly pension if you proceed with the transfer, and
  • if the amount available to transfer from the exporting plan is insufficient to provide you with equivalent pensionable service, the approximate cost to purchase the estimated additional pensionable service.

Tax Implications

Improving pension benefits for previous service can create a Past Service Pension Adjustment (PSPA), which will reduce your RRSP room. As a result, approval from Canada Revenue Agency (CRA) is usually required for RTA transfers.

The importing plan will calculate the Pension Adjustments (PA’s) that would have existed if your available pensionable service had been with the importing planand compare that to the PA’s that were reported by the exporting plan for the same service. If the PA’s under the importing plan would have been greater than what the exporting plan reported for you, a PSPA is created. The importing plan must apply to CRA for approval of that PSPA prior to requesting the funds from the exporting plan.

In addition, the purchase of a service shortfall is purchased may result in a PSPA which would also have to be certified by CRA before any cash payments could be received.

The importing plan will advise the exporting plan of the total PA value, as there may be a requirement for the exporting plan to prepare a Pension Adjustment Reversal (PAR). A PAR would return some of the RRSP room previously reduced under the exporting plan.

General Notes

The amount available for transfer from the exporting plan and the amounts required by the importing plan are calculated based on the actuarial value of the pension benefits being transferred. The importing and exporting plans calculate the value of the pension benefit based on the individual plan provisions and assumptions and the terms of the applicable RTA. Other factors that influence the value of a pension benefit include:

  • the member’s salary at the date of transfer
  • the member’s credited service
  • the member’s date of birth

If the amount transferred to the importing plan is less than the termination value available from the exporting plan, the excess value will be calculated in accordance with the provision of the exporting plan. You can contact the exporting plan for further information.

If the CSSF is the exporting plan, you will not be eligible to transfer pensionable service to another pension plan if you removed any funds from the pension plan or Money Purchase Plan or commenced the pension or annuity.

If the CSSF is the importing plan, we cannot accept funds greater than the amount required to credit the service available for transfer.

Depending on the terms of the reciprocal transfer agreement, a separation in a marriage or common-law relationship would have to be finalized with the exporting plan before the member may transfer to the importing plan.

The following Pension Transfer Agreements are currently in place:

National Agreement

  • Alberta Local Authorities Pension Plan
  • Alberta Management Pension Plan
  • Alberta Public Service Pension Plan
  • British Columbia College Pension Plan
  • British Columbia Municipal Pension Plan
  • British Columbia Public Service Pension Plan
  • British Columbia Teacher’s Pension Plan
  • The Workers’ Compensation Board of British Columbia Superannuation Plan
  • Newfoundland and Labrador – Public Service Pension Plan
  • Nova Scotia – Public Service Pension Plan
  • Ontario Pension Board
  • OPSEU Pension Plan
  • Prince Edward Island – Civil Service Superannuation Fund
  • New Brunswick/la Province du Nouveau-Brunswick – Public Service Shared Risk Plan
  • Quebec

The CSSB has also entered into RTA’s with:

  • The Board of Trustees of the Canadian Interagency Forest Fire Centre Employees’ Retirement Plan Trust Fund
  • Winnipeg Civic Employees’ Benefits Program – City of Winnipeg
  • The Government of Canada
  • The Healthcare Employees Pension Plan – Manitoba
  • The Legislative Assembly Pension Plan (Manitoba)
  • The Municipal Employees Benefits Program Board
  • The Pension Trustees of the Brandon University Retirement Plan
  • The Teachers Retirement Allowances Fund Board
  • The University of Manitoba
  • The Winnipeg School Division No. 1 Pension Fund for Employees (Other than Teachers)
  • The Workers’ Compensation Board of Manitoba