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Pension plan after resigning

  • Last Updated:
  • May 13th, 2021 8:38 pm
[OP]
Member
Mar 26, 2013
415 posts
46 upvotes
Toronto

Pension plan after resigning

Hi there, i was wondering if it’s possible to have your pension plan paid out after you resign from your job?
8 replies
Deal Addict
User avatar
Mar 7, 2007
4754 posts
2248 upvotes
As a lump sum?

Before quitting the job, read the conditions in your plan or even ask HR directly.

For example.... When I worked for CIBC they paid me out a lump sum (off the plan),. I asked them if I could stay in the plan, as I would prefer a monthly payment when I retire, even if it is microscopic, but there was no option.

Is that what you are asking?
Deal Addict
Jul 16, 2019
1157 posts
542 upvotes
lovetolearn wrote: Hi there, i was wondering if it’s possible to have your pension plan paid out after you resign from your job?
Paid out as in you get cash or transferred to another institution and still locked in. Most companies will allow you and sometimes insist that you move your pension to another plan at a financial institution or broker. I think defined benefits plans stays, defined contribution moves.
Deal Addict
Sep 13, 2003
1289 posts
116 upvotes
pension plans are always registered I thought. the two common options companies give is to move your pension to an individual plan with the current pension provider or commute the pension money to another financial instituation into a LIRA. The only other option I can think of is when someone retires and the pension gets converted into RRIF
Deal Addict
Jul 12, 2008
3585 posts
1084 upvotes
GTA
Yes it’s possible especially if it’s a public sector employer, the payout can reach 7 figures depending on your salary and years of service.

You can also leave it with your employer or move it to another employer.
Banned
Dec 1, 2020
862 posts
339 upvotes
Moderators lick khun…
Yah.

You should check.

I had my RPP that had to be liquidated and transferred to a LIRA in cash.

Normally, I would have been pissed but turns out liquidation and then finally getting around to investing cash in April 2021 has doubled this amount. Getting fired turned out to be great as well as soaking my severance into the market. Haha.
Deal Fanatic
User avatar
Dec 27, 2009
7559 posts
4898 upvotes
Victoria, BC
vernonco wrote: Paid out as in you get cash or transferred to another institution and still locked in. Most companies will allow you and sometimes insist that you move your pension to another plan at a financial institution or broker. I think defined benefits plans stays, defined contribution moves.
You can get lump sum payouts from defined benefits plans. Really just read your agreement.
Banned
Dec 1, 2020
862 posts
339 upvotes
Moderators lick khun…
Chickinvic wrote: You can get lump sum payouts from defined benefits plans. Really just read your agreement.
Yah agreed. I had to keep mine registered but gladly could transfer out of the crap plan they had with really crappy funds. Now have with all other investments. Good advice to read and see what options you have.
Deal Addict
Sep 14, 2012
1849 posts
1325 upvotes
Montreal, QC
lovetolearn wrote: Hi there, i was wondering if it’s possible to have your pension plan paid out after you resign from your job?
Not sure what you mean by paid out but if you meaning getting it all in cash, I would say that the answer is 99.9% no.

If you mean whether you can move it out of your company's pension plan and put it somewhere else (in a locked in, registered plan), it depends on the type of pension plan you have but if it is a defined contribution pension plan, the answer is generally yes.

My old company pension plan was with Manulife and I kept it with them for ~10 years after I no longer worked at that company for no particular reason except I hadn't investigated my options of moving it out. I decided to consolidate my investments so decided to move it a few years ago and did the necessary paperwork to move it to a LIRA (Locked In Retirement Account) with one of the financial institutions that I deal with after meeting with 3 financial institutions.

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