Termination
When you terminate employment with your participating employer(s) prior to meeting a retirement provision, you are entitled to a deferred pension benefit and may elect one of the following options:
- Leave your pension benefit in the Plan and apply for a deferred pension at a later date, but no later than the first of the month following your 65th birthday.
- Transfer the value of your pension benefit to a Locked-In Retirement Account (LIRA).
- Transfer your pension benefit to an RRSP or receive a taxable lump-sum refund. This option is only available if your pension is considered a small benefit under The Pension Benefits Act of Manitoba. Please visit the Glossary - Pension Terms section for a definition of a small benefit.
- Transfer your pension benefit to another RPP as a commuted value transfer, provided there is no reciprocal transfer agreement in place and basic eligibility requirements are met.
Note: Once you meet a retirement provision as outlined in the Retirement section, you are no longer eligible to transfer the value of your pension benefit unless your pension benefit is considered a small benefit under The Pension Benefits Act of Manitoba.
Tax Withholding Rates
Income tax is deducted from your pension benefit if The Pension Benefits Act of Manitoba allows for the benefit to be taken as a cash refund. In most cases, the tax withholding rates for lump-sum payments are as follows:
- 10% on amounts up to and including $5,000.
- 20% on amounts over $5,000 up to and including $15,000.
- 30% on amounts over $15,000.
