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Whether you’re leaving your job by choice, you’ve been laid off, affected by layoffs, or you’re considering a career change, the most important thing is to address the issue of what to do with your company’s retirement plan.<\/p>\n
As a worker in Canada, you have several options that you can include in your workplace pension, so let’s dig into the details and see what you need to know.<\/p>\n
When you decide to leave your job, you are faced with a key decision regarding your defined benefit (DB) or defined contribution (DC) pension.<\/p>\n
There are several reasons that may prompt you to transfer your pension:<\/p>\n
However, before taking any action, always consult a financial advisor to understand the nuances involved.<\/p>\n
It is very important to make sure that your pension, whether DB or DC, is fully vested. This determines your rights in terms of employer contributions and any subsequent earnings. Typically, the vesting period is two years or less, but this may vary by company. Depending on the province, immediate vesting may be mandatory.<\/p>\n
When you leave your job, make sure you get a written statement benefits summary<\/strong>. This document details your retirement benefits and serves as a tangible record.<\/p>\n Employers have 30 days to provide this, which should include:<\/p>\n In scenarios where there is no immediate job on the horizon, it is advisable to consider a lump sum payment or a lock-in savings plan.<\/p>\n\n
4. Choices lie ahead: what is best for you?<\/strong><\/span><\/h2>\n
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5. Specific scenarios: resignation, termination and transfers<\/strong><\/span><\/h2>\n
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6. Charting uncharted territory: leaving without a new job<\/strong><\/span><\/h2>\n