Pension transfer out
Introduction to pension transfer out
A “pension transfer out” through a Pension transfer agreement (PTA) is when you transfer the monetary value (also known as the actuarial value ) of your pension earned under the Royal Canadian Mounted Police (RCMP) Pension Plan to your new employer’s pension plan, allowing you to buy additional pension service under your new employer’s pension plan.
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A PTA needs to be implemented in order to carry on with the process. If you are/were an employee with the RCMP who is preparing to leave or have already left and have never received any payout or benefit from the RCMP pension plan then under the agreed upon PTA you may transfer your RCMP pension plan to your new employers pension plan. By doing so you may also be able to increase your new pension service under your new employers plan.
No obligation to transfer your pension
There is no obligation to transfer your RCMP pension to your new employer’s pension plan. Depending on your service and age, you have different options available should you leave the RCMP. Refer to the Pension entitlement information package and the Ending your employment section for information on the different pension options available to you.
Things to consider before proceeding with a pension transfer out
There are many things to consider before proceeding with a pension transfer out such as:
- eligibility
- time limits
- cost
- registered Retirement Savings Plan (RRSP) room implications
- other
To help you in making a decision about whether or not to transfer your pension, visit the “Compare your Royal Canadian Mounted Police Pension Plan to Another Plan” webpage for more information.
Ensure to consult the Pension transfer out considerations for important details on each of the above.
As pensions are complex, you may wish to seek the advice of an independent financial advisor before making a final decision. An independent advisor can be a financial planner, an actuary or an accountant you trust to give you impartial advice and who is qualified to do so. The Government of Canada Pension Centre is also available to answer any questions you may have about your RCMP pension and the PTA process.
The process of pension transfer out
If after carefully reviewing the Pension transfer out considerations you would like to proceed with a pension transfer out, you should review the Pension transfer out administrative process where the following topics are covered:
- estimates
- the transfer out process