Considering moving on from your current PEPP employer? Here's what you need to know:
- Your employer will notify PEPP of your termination.
- PEPP will send you a personalized termination option package within 15 to 20 days.
Learn more on Account Changes - Terminating your employment.
Your options
Whether you've worked with your PEPP employer as a summer student or for years, the funds in your PEPP account belong to you.
However, since PEPP is a registered pension plan, legislation guidelines must be followed. For instance, you become vested and locked-in to the Plan effective the date of your enrolment.
- Vested means you are entitled to the employer’s contributions made on your behalf and the return on investment on these contributions.
- Locked-in means your account balance must be used to provide income at retirement. It cannot be refunded to you in cash.
As a result of your funds being locked-in, you can:
- leave your account balance in PEPP and your account will continue to be valued based on current unit values;
- transfer your account balance to a Locked-in Retirement Account (LIRA);
- transfer your account balance and pensionable service to another registered pension plan (RPP) if eligible under a reciprocal or portability agreement with PEPP;
- take a small pension payment, if your account balance is below a dollar minimum calculated at 20% of the Yearly Maximum Pensionable Earnings (YMPE), as determined by the Canada Pension Plan; or
- if you're a qualifying non-resident of Canada, you may request a lump sum payment of your entire PEPP account less income tax.
For help selecting the option that is right for you, contact your employer or PEPP.