If you leave the Plan for any reason other than retirement or death (including losing seniority as per the Collective Agreement), you are entitled to termination benefits.
You will be fully vested in all contributions made (and earnings thereon), immediately upon joining the Plan. Vesting means you are entitled to keep your employer's contributions plus earnings to date if you leave the Plan. Your member contributions and your employer's contributions will also be locked-in immediately upon joining the Plan. In accordance with government legislation, locked-in funds cannot be taken as a cash withdrawal when you leave the Plan, but must be transferred to a locked-in account. You cannot take cash from this locked-in account until age 55 at the earliest.
In the case of termination you have the choice of either:
a deferred pension
a transfer of the value of your pension plan account.
You may elect to defer the receipt of all or a portion of the full value of your pension plan account until a date to be specified but in any event no later than the end of the calendar year in which you reach age 71. The balance of your pension plan account shall continue to be part of the fund and generate earnings.
In lieu of a deferred pension you may elect to transfer the value of your pension plan account to one of the following vehicles:
- a tax-free transfer to a Locked-in Retirement Account (LIRA) which must be
used to provide an annuity at retirement;
- a tax-free transfer to another registered pension plan; if permitted by that plan; or
- a tax-free transfer to an insurance company to purchase a deferred life annuity
commencing any time after age 55 but no later than the end of the calendar
year in which you reach age 71.
If you terminate 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 termination benefits as a lump sum cash payment.
If you were a member of the Plan before 1994 and you terminate your membership in the Plan, you will have the option of receiving a cash refund equal to 50% of your member contributions made prior to January 1, 1994 plus the earnings associated with those contributions to December 31, 1993.
Alternatively, you can transfer this unlocked amount tax-free to a Registered Retirement Savings Plan (RRSP) or to another registered pension plan, if permitted by that plan.
The amount of such payment will be subtracted from the accumulated total of all member and employer contributions, together with the earnings associated with those contributions. The remaining balance of your pension plan account shall remain locked-in and used to purchase an annuity when you become eligible for retirement or transferred out of the Plan as outlined above.
All transferes are subject to the maximum limits under The Income Tax Act.