Pension Plan Members
What are my options when I leave my employer?
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 "Locked in" means that the money in the LIRA cannot be withdrawn or surrendered.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.
Your pension plan more also provide you with options related to pooled registered pension plans (PRPPs). Please see our PRPP webpage for more information on PRPPs.
See the related document below for more information regarding your options when you terminate employment.