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Pensions Division |
What are my options on termination of employment?
Your options depend on your personal circumstances at the
date you terminate employment.
Vesting means that you have an unconditional entitlement
under the plan to receive a pension as a result of satisfying age or service requirements.
Saskatchewan legislation states the maximum period that members must work before becoming
vested. For benefits earned before January 1, 1994 you are vested if your age plus
continuous service or membership with the plan totals 45 years or more, with a minimum of
1 year of continuous service or membership. Benefits earned after January 1, 1994, are
vested when you have completed two years of continuous employment. Some plan sponsors
allow members to vest earlier than required by legislation. You must satisfy the vesting
rule at the date of your termination of membership.
If you are not vested when you terminate, you will not
receive a pension from the plan. However, if you contributed to the plan, you will receive
a refund of those contributions together with interest.
If you are vested but not yet eligible to receive a pension
from your plan, you have the right to transfer an amount equal to the value of your
pension from the plan to a locked-in retirement account (LIRA). A LIRA is better known as
a locked-in RRSP. "Locked in" means that the money in the LIRA cannot be
withdrawn or surrendered. It must be used to provide you with a pension.
If you are vested and eligible to start your pension, the
plan does not have to allow you to transfer money out. The plan could require you to
receive a pension directly from the plan.
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