When a member leaves employment, the process is as follows:
- When all final monies owing to you have been paid out by your employer (final pay, vacation pay, etc.), your employer will send us notification of your termination.
- When we receive this notification we will put together a package for you detailing the value of your pension and what your options are regarding it. The package including information and forms will be sent to your home address within 60 days of the date we receive employer notification.
- You would then complete the enclosed option forms and return to us for processing.
Options Upon Termination
Option A – Deferred Pension
Allows you to leave the funds with the Superannuation Board to collect a pension at a later date. This option may or may not be available depending on what the final value of your pension is calculated to be.
Any excess contributions (if applicable) will be paid as a taxable cash refund only.
A member’s pension is considered deferred if he or she is no longer an employee or active member in the plan, and is either under age 55, or is at least age 55 but has not applied to commence the pension. Cost-of-living increases applied to deferred pensions are the same as increases granted on pensions in payment.
Option B – Reinstatement or Transfer to Another Pension Plan
Reinstatement is the option of combining a prior Fund account with a new Fund account. Reinstatement results in the combination of the two pensions, which is less complicated and generally provides for a higher gross pension income but is also less flexible. A member with a deferred pension may reinstate the pension if he or she again becomes an employee within three years of having ceased to be an employee and applies for reinstatement within two years of again becoming an employee. A member cannot reinstate a pension if those benefits have been refunded or transferred, or the excess contributions have been removed from the plan or Money Purchase Plan. If a member has two or more pensions (accounts) in the plan, qualifying service for each pension includes the total qualifying service from all pension accounts, whether reinstated or not.
Transfer to Another Pension Plan
You can generally transfer your pension to another employer pension plan at anytime before the pension has commenced if that plan will accept the transfer. There are no deadlines for transferring your pension benefits under this option.
Reciprocal Transfer Agreements (RTA’s)
These agreements may provide greater benefits than transfers where no agreement exists. The Board has entered into Reciprocal Transfer Agreements with many pension plans in Manitoba and across Canada. To be eligible, you must be a member of a pension plan that we have a transfer agreement with and apply within any timelines in the agreement. You may not be eligible for such a transfer if you removed any funds from the pension plan or Money Purchase Plan, or commenced the pension or annuity.
To apply, you would first complete the Option form requesting additional information. You would also need to complete a form available from your new pension plan administrator. This form provides written consent for the two plans to exchange your information. This would not obligate you to transfer your pension. You would complete an actual transfer application once you have received the necessary information from both plans on which you can base your decision. Please contact the Board office or see our website for further information.
Option C – Transfer to Personal Plan or Refund
Transfer values are made up of one or more of locked-in funds, non locked-in funds, excess contributions, and Registered Pension Excess on Transfers.
- Locked-in Funds can be transferred to a Locked-in Retirement Account (LIRA), Life Income Fund (LIF) if age 55 or older, or a CSSB Money Purchase Plan locked-in account. Consent of spouse/common-law partner is required, if applicable, for funds transferred to a LIF.
- Non-Locked in Funds and Excess Contributions can be transferred to an RRSP, a CSSB Money Purchase Plan non-locked-in account, or paid as cash.
- Registered Pension Excess on Transfers must be paid as cash.
Cash payments are subject to income tax withholding.
Transfer amounts tend to increase with time, but may decrease from time-to-time due to changes such as interest rates or legislated calculation methods.
Defaults If No Election Made
If completed option forms are not returned to us within 120 days of the date of the termination option letter, the pension will remain as a deferred pension and any excess contributions (if applicable) will be paid as a taxable cash refund. This will not change any of the options available, however the recalculated value of a later transfer could increase or decrease due to changes such as interest rates or legislated calculation methods.
If you are registered for CSSB Online Services, you may access the Termination Estimator which will provide the options available specific to your account.
Please click here for a printable fact sheet.