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What to do with pension when moving to another company

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  • Oct 4th, 2014 1:48 am
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[OP]
Sr. Member
Aug 4, 2010
583 posts
72 upvotes

What to do with pension when moving to another company

My wife is switching jobs in 2 weeks....and is moving from a place that offered a pension plan to one that does not. The new company does contribute 2.5% of the annual salary to RRSP.

My question is, what should she do with the pension she had with the other company? She had about 5 years of service.

Any information would be great.

Thanks
4 replies
Deal Fanatic
User avatar
Jan 31, 2006
5027 posts
728 upvotes
Toronto
Usually the fund company that managed her pension will encourage her to moved it elsewhere since she does not work for her old company. She can also move it to a financial institution or another fund company of her choice but should be the same condition as before (e.g. It's an LIRA then it should be transfer to a same LIRA account to whatever she choose)
[OP]
Sr. Member
Aug 4, 2010
583 posts
72 upvotes
Sorry to revive an old thread, but we just receive the documents on this. We basically were given 4 options, which was state above, but with actual numbers so I guess we could make a more informed decision.

It basically comes down to the deferred pension option or locked in transfer.

She did not have many pensionable years, so the total lump sum amount is $32,000. The deferred pension option would pay $300 a month for life. The deferred pension sounds like the easiest and safest option, but wanted to see if other opinions.
Deal Fanatic
Jul 1, 2007
8068 posts
904 upvotes
For such a small amount it's kind of pointless to go with the deferred option. Just transfer the pension out.
Money Smarts Blog wrote:
Nov 29th, 2010 11:18 am
I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.

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