Options:
1. Transfer of the deferred pension and exceeding contributions to a Locked-In Retirement Account (LIRA) or another authorized vehicle (e.g., the pension plan offered by your new employer if it is allowed).
Moreover, a taxable refund could be offered if there is an exceeding amount as set by law. This amount can be deposited in an RRSP under certain conditions.
IMPORTANT: For employees working in Quebec, the refund of the pension value is done according to the DGPP’s solvency ratio (up to 100%), without residual rights.
As of January 1, 2023, upon the termination of Plan membership, benefits for Quebec members are paid according to the Plan's solvency ratio as determined on a monthly basis. More precisely, the solvency ratio used is the one in effect on the last day of the month prior to the month of termination of Plan membership. For example, if your participation to the Plan ends on February 14, the applicable solvency ratio is the one calculated on January 31.
The solvency ratio in effect in the case of a termination of membership in January 2023 is 97.3%. Thus, if, for example, the value of your pension is $100,000 and you opt to transfer it out of the DGPP, the sum of $97,300 will be transferred and you will permanently forego the difference of $2,700.
Month of termination of Plan membership
|
Applicable solvency ratio
|
January 2023
|
96.2%
|
February 2023
|
99.8%
|
2. Deferred pension: The pension's payment is delayed. The pension is indexed on an annual basis according to applicable rules.
Starting at age 55, it is possible to retire early with an applicable reduction if applicable. It is, however, mandatory to start taking your pension starting at age 65.
Before you turn 55, if you wish, you can request a transfer again. An update of the value of the rights will then have to be made.