If you stop working for a PSPP participating employer before you're eligible to start pension there may be options available to you depending on whether or not you are a vested member.
Understanding Your Termination Options
You are a non-vested member if you contributed to the Plan for less than two years.
Non-vested members who terminate from the PSPP will automatically have their employee contributions, including interest, refunded. No application is required.
The refund amount will be calculated and mailed to your home as a lump-sum payment. To update your home mailing address, please contact the Pensions & Benefits office at email@example.com.
Should you return to a permanent position with a CSSF participating employer within two years of receiving a refund of contributions, you will be eligible to purchase this service back. For more information on purchasing service, see the Purchasing Service section.
You are a vested member if you have at least two years of continuous service from the date of membership in the Plan to the date of termination.
Vested members who leave a permanent position within the PSPP have the following options:
- Refund of Contributions
You may take your refund as cash payment, transfer it to an RRSP, or a combination of the two. Interest will be added to the amount up to the date of transfer or refund. If you choose this option, the refund will be based on your contributions only and you will have no further entitlements in the Plan.
To make application for a voluntary refund of contributions, a vested member must complete a Refund of Contributions Form (PDF).
A T2151 Form (PDF) must accompany the refund application if a vested member chooses to transfer their funds to a RRSP.
- Monthly Deferred Pension
You may leave your assets in the Plan and make application for a monthly deferred pension when you are eligible. The Plan provides an unreduced pension at age 62 or at 32 years of service. You are eligible to draw your pension as early as age 55, subject to applicable early retirement reductions that are based on the time the service was rendered. Your monthly pension payment will be indexed at the beginning of each year, provided the funded status of the pension plan remains at or above 110%.
- Transfer of Pension Credit
If your new employer offers a similar defined benefit pension plan, you may be eligible to transfer your PSPP pension service and benefits. See 'Transferring Your Past Service' in the Basics of Plan Membership section for more information.