Termination Benefits

On termination of employment other than by retirement, a Member is entitled to a benefit equal to the current value of their account (Member's Employee Contribution Account, the University Contribution Account and the Additional Voluntary Contribution Account, if any). At the direction of the Member, the termination benefit may be either:

  • transferred to the Member’s Locked-in Retirement Account
  • transferred to the pension plan of the Member’s new employer on a defined contribution basis, to the extent that such plan permits, or
  • used to purchase a non-commutable immediate or deferred life annuity in the amount, which can be provided under a contract, issued by an Insurer.

Exception to Full Locking-In:

  • The pension is a small benefit as defined in the Pension Benefits Act and Regulations
  • The member is a non-resident of Canada as defined in the Pension Benefits Act and Regulations
  • A Member who has both attained age 45 and completed 10 years of service may elect to receive in cash 25% of that part of the Employee Contribution Account and 25% of that part of the University Contribution Account in respect of contributions made on and after July 1, 1976 and prior to January 1, 1985. In that circumstance there shall be no forfeiture of University contributions and the balance of the Accounts shall remain locked-in.

No Election:  If a terminating Member makes no election within 12 months after the date of termination of employment, the University has the right to purchase on his or her behalf, a deferred life annuity.

Commutation of Small Pensions:

In the event that the locked-in part of the sum of the Employee Contribution Account and the University Contribution Account is less than 20% of the Y.M.P.E. in the year of termination, the Member shall receive a lump sum payment of the value of the Contribution Accounts applicable to such benefit either in cash or by transfer to a Registered Retirement Savings Plan.

 

 

 

 

 

 

 
Questions or comments regarding Pension Benefits 
please e-mail: Pension Administration