Frequently Asked Questions - Ceasing Employment
What does transfer value of my pension mean?
The transfer value is the present value of future benefits as determined by the Fund’s Actuary. The transfer value calculation takes into account the amount of the pension benefit, how far away you are from commencing the pension, your age, and actuarial assumptions regarding mortality and interest rates.
For further information on transfer values, please click here.
A portion of my entitlement must be taken as a taxable cash refund if I elect to transfer my benefit out of the Fund. Why can I not transfer this amount to an RRSP?
Based on your age and pension benefit accrued at the time of the calculation of your transfer value, the Income Tax Act and Regulations have formulas to determine the maximum value that is eligible for transfer from a pension plan on a tax deferred basis. If the transfer value of your pension is greater than maximum value, then the amount in excess cannot be transferred directly to an RRSP or LIRA and must be paid in cash less applicable withholding tax.
You will need to claim this refund as a refund from the pension plan in the year the refund is paid. A T4A will be issued at the time the refund is paid. You should keep this form with your income tax documents.
Can I provide a copy of my Canada Revenue Agency (CRA) assessment notice to show I have RRSP room?
The CSSB will not accept a copy of your CRA assessment notice as proof that you have RRSP room available for transferring funds. If you have RRSP room, you could complete, Request to Reduce Tax Deductions at Source for Year (T1213), to apply for a reduction of income tax at source. Please ensure that the pension plan name is indicated under Employer on this form, as the taxable cash payment is being made from the pension plan and not your employer.
If you wish to pursue this with CRA, you should make application as soon as possible as it may take some time before you receive your letter of approval or denial from CRA. Just by making application to CRA to reduce tax at source, does not extend the deadline that is indicated on your termination option form for return of your completed forms to the Board Office before defaults apply. Once you receive your letter from CRA, please forward a copy of the letter along with your termination option form and appropriate documents. The cash portion of your entitlement would be paid to you directly and you would then be responsible for investing into an RRSP for tax deferral.
What happens to my pension if I change jobs within the Province of Manitoba or other employer that participates in the Civil Service Superannuation Fund?
If you previously contributed and have re-entered the Plan, previously accumulated pensionable service can be reinstated if:
you did not withdraw or transfer any portion of the pension benefits for that service;
you re-enter the Plan within three years of leaving; and
you apply within two years of re-entering the Plan.
Note: If you transferred pension benefits in respect of a prior period because you were required under the Act to do so, you may be eligible to reinstate that service (subject to the applicable time deadlines), if you repay any amount refunded (if applicable) plus whatever amount is necessary to reinstate the account.
Contact the Board office to determine if you are eligible to reinstate prior service.
If I leave employment and choose a deferred pension, when can I start receiving my monthly pension?
You may commence your deferred pension at any time after age 55. Within six months prior to the date you want to commence your pension, you can either complete your retirement options online or request a retirement package from the Board office.