Termination Benefits

If you leave your employer for any reason other than retirement or death, your employer will notify Möbius Benefit Administrators Inc. and provide information regarding your service and earning history.  Within 90 days you will receive a termination package outlining your options.  You are entitled to termination benefits under the Plan which depend on whether you have less than two years of continuous service (non-vested termination) or more than two years of continuous service (vested termination).

Your termination benefit election must be made within 90 days of receiving your termination package.

 

Vested Termination

Once you are vested in the Plan (have more than two years of continuous service) your benefit is determined according to the plan formula and must remain locked-in for retirement.  In the case of a vested termination you have the choice of either:

 

      a deferred pension

 

      or

 

      a commuted value transfer.

 

Deferred Pension

You are entitled to a deferred pension beginning at age 60 for Police members or age 65 for Civilian members.  Your deferred pension will be calculated using the Plan's normal retirement pension formula based upon your years of service and highest average pensionable earnings to your date of termination.

 

You may elect to have your deferred pension commence on the first of the month after you reach age 50 for Police members or age 55 for Civilian members, however your pension will be actuarially reduced.

 

Commuted Value Transfer

In lieu of a deferred pension you may elect to transfer the present value of your locked-in deferred pension to one of the following vehicles:

 

      - a tax-free transfer to another registered pension plan, if permitted by that

        plan;

      - a tax-free transfer to a Locked-in Retirement Account (LIRA) which must be

        used to provide a pension at retirement; or

      - a tax-free transfer to an insurance company to purchase a deferred life

        annuity that may commence at any time after age 50 for Police members or

        age 55 for Civilian members and prior to the end of the calendar year in

        which you reach age 71.

 

The funds must be administered on a locked-in basis until the earliest of the date that you would have reached 25 years of service or when you attain the age of 50 for Police members or the age of 55 for Civilian members.

If your employment ceases after becoming eligible for early retirement, the above termination options are not available to you.  In this case you are considered a retired member and must elect one of the forms of pension available from the Plan.

 

Excess Contributions

Under the provisions of The Pension Benefits Act, 1992 (Saskatchewan), if you are locked-in on termination, not more than 50% of your accumulated contributions plus interest can be used to offset the value of your accrued pension.  If its determined that the balance of your contributions on termination exceeds 50% of the value of your accrued pension, the excess contributions are refunded to you.  You may elect to receive these excess contributions in one of the following forms:

 

      - a taxable lump sum cash payment;

      - a tax-free transfer to another registered pension plan, if permitted by that

        plan; or

      - a tax-free transfer to your personal Registered Retirement Savings Plan

        (RRSP).

 

If choosing a deferred pension, you may elect to use your excess contirbutions to increase the pension payable to you at age 65.

All transfers are subject to the maximum limits under The Income Tax Act.