Episode 74: Your Pension Options When Leaving Your Employer

There are generally three options to choose from when members of a defined benefit pension plan have the option to commute their pension:

1. Take the pension and commence monthly payments on a date allowed by the plan (usually between age 55 and 65).
2. Transfer the pension's commuted value to another registered pension plan (if the new employer's plan permits a transfer).
3. Transfer the pension's commuted value to a locked-in account, where the commuted value of a defined benefit pension represents the present value of the lifetime pension payments as calculated under the plan's benefit formula. This benefit is usually comprised of an amount that can be transferred to a locked-in account (under provincial or federal pension legislation) on a tax-deferred basis and an excess amount that is subject to immediate taxation.

Tune into today's episode to learn about your benefit options when leaving an employer.

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Regan Schiller holds his Certified Financial Planner, Registered Retirement Consultant and Certified Life Underwriter designations. He is an Executive Financial Consultant licensed under Investors Group Securities Inc.Mutual funds and investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm). Additional investment products and brokerage services are offered through Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently, and past performance may not be repeated.

LIRA regulations vary provincially. For more information on LIRA in your area, please refer to your provincial government's website. Additional information on the Canada Pension Plan and Old Age Security can be found at:

www.canada.ca/en/services/benefits/publicpensions.html.

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