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;
- if you're a qualifying non-resident of Canada, you may request a lump sum payment of your entire PEPP account less income tax.
If you are age 50 or older, you are eligible for retirement options and can apply to receive retirement income immediately. You may choose one or a combination of the following options:
- transfer to a PEPP Variable Pension Benefit (VPB) account;
- purchase a PEPP Lifetime Pension;
- purchase a life annuity from the Saskatchewan Pension Annuity Fund (SPAF) or an authorized insurance company;
- purchase a prescribed Registered Retirement Income Fund (pRRIF) from a financial institution.
- 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.
For help selecting the option that is right for you, contact your employer or PEPP.