When you retire you will receive the full value of your pension plan account, which includes the accumulated total of member and employer contributions, plus the earnings associated with those contributions. At this time you will have the choice of either:
a tax-free transfer to a Locked-in Retirement Account (LIRA) which must be
used to purchase an annuity before you reach age 71
a tax-free transfer to an insurance company to purchase an immediate life annuity.
If you retire from the Plan and the current value of your pension plan account is less than the minimum amount prescribed in The Pension Benefits Act, 1992 (Saskatchewan), you can receive your retirement benefits as a lump sum cash payment.
The actual size of your pension will depend on three important factors:
- the accumulated total of member and employer contributions;
- the rate of return you earn on those contributions, and
- your age when you retire.
Consider what happens when the member and employer
contributions total $136.50 each month, assuming the fund
earns 4%, 6%, or 8% per year:
Years of Plan
Membership 4% 6% 8%
5 9,050 9,524 10,030
10 20,100 22,370 24,972
15 33,591 39,697 47,234
20 50,065 63,069 80,401
25 70,179 94,594 129,815