Leaving
the Plan
When you leave your job, your pension options depend on your years of pensionable service.
- If you have less than five years of continuous service and less than two years in the Plan, you get your contributions back with interest. You can take this as cash (with tax deducted) or transfer it to your Registered Retirement Savings Plan (RRSP).
- If you have five or more years of continuous service or more than two years in the Plan, you get a deferred pension starting at age 65 (age 60 for police and firefighters).
- This pension is based on what you’ve earned up to your termination of employment. For contributions after 1991, if you’ve paid more than half the value of your benefits, you get the extra back as a taxable amount.
- If you are not eligible for immediate retirement, the Plan administrator will calculate the commuted value of your pension. This value depends on your pension amount, your age when leaving, current interest rates and other factors.
- This pension is based on what you’ve earned up to your termination of employment. For contributions after 1991, if you’ve paid more than half the value of your benefits, you get the extra back as a taxable amount.
Instead of keeping your pension in the Plan, you can:
- Transfer it to another pension plan,
- Move it to a RRSP, or
- Buy an annuity from an insurance company
All three of these options are ‘locked-in’, meaning you must use them for retirement income, not cash.
As of October 2025, the Plan holds back 20.6% of transfers due to requirements found under the Pension Benefits Act. This held amount, plus interest, will be paid within five years of your initial payment.
When you leave your job, your pension options depend on your years of pensionable service.
- If you have less than five years of continuous service and less than two years in the Plan, you get your contributions back with interest. You can take this as cash (with tax deducted) or transfer it to your Registered Retirement Savings Plan (RRSP).
- If you have five or more years of continuous service or more than two years in the Plan, you get a deferred pension starting at age 65 (age 60 for police and firefighters).
- This pension is based on what you’ve earned up to your termination of employment. For contributions after 1991, if you’ve paid more than half the value of your benefits, you get the extra back as a taxable amount.
- If you are not eligible for immediate retirement, the Plan administrator will calculate the commuted value of your pension. This value depends on your pension amount, your age when leaving, current interest rates and other factors.
- This pension is based on what you’ve earned up to your termination of employment. For contributions after 1991, if you’ve paid more than half the value of your benefits, you get the extra back as a taxable amount.
Instead of keeping your pension in the Plan, you can:
- Transfer it to another pension plan,
- Move it to a RRSP, or
- Buy an annuity from an insurance company
All three of these options are ‘locked-in’, meaning you must use them for retirement income, not cash.
As of October 2025, the Plan holds back 20.6% of transfers due to requirements found under the Pension Benefits Act. This held amount, plus interest, will be paid within five years of your initial payment.
When you move between participating employers under the Plan, your pension continues as if you hadn’t changed employers. This applies only if you didn’t take a lump-sum settlement, refund, transfer, or buy an annuity upon your termination of employment with your prior employer.
If you leave for a non-participating employer, you might be able to transfer the benefits payable to you under the Plan upon your termination of employment to your new employer’s plan. This transfer depends on your new employer’s approval.
If you die before retirement, your death benefits depend on your years of employment and participation in the Plan.
- If you have less than five years of employment and less than two years in the Plan, your spouse, beneficiary, or estate receives your contributions plus interest, minus taxes.
- If you have five or more years of employment or two or more years in the Plan, your spouse, beneficiary, or estate receives the commuted value of your pension.
- For contributions after 1991, if you’ve paid more than half the value of your benefits, the extra amount goes to your spouse, beneficiary, or estate.
For death benefits after retirement, the pension option you choose at retirement determines who receives payments after your death and how much they receive.
Note: Your spouse automatically receives benefits if you have one at death, regardless of your named beneficiary. If you have no spouse or beneficiary, benefits go to your estate.