Working Past Age 71
In Manitoba, employers cannot impose a mandatory retirement age. You can continue to work for as long as it suits you and your employer.
However, The Income Tax Act (Canada) requires that pension payments from a registered pension plan must begin before the end of the calendar year in which a member attains age 71, whether or not the employee stops working.
In order to ensure that pension payments begin prior to December 31, the Civil Service Superannuation Board uses a maximum “retirement” date of November 30 of the year an employee turns age 71. This maximum retirement date only affects when your pension will commence – not when you stop working.
If you continue to work after November 30 of the year you turn age 71, for pension plan purposes you will be deemed to have retired on November 30.
You will stop contributing to the pension plan on November 30 and your pension will begin in December.
The option to transfer your pension value out of the plan will not be available to you, unless your pension is below the small pension threshold prescribed in the Pension Benefits Act.
Any vacation cash-out paid to you after the year you turn age 71 will not be considered in determining your monthly pension.
It is important that you submit completed retirement forms before November 30. If retirement forms are not completed and submitted by that date, your pension will commence automatically, and defaults will apply.
If you are participating in the Public Service Group Insurance plan, employee life insurance and dependent insurance coverage will continue until you cease to be an employee. At that time, retiree coverage would take effect.
If you stop working on or before November 30 of the year you turn age 71, you will have the option to receive a monthly pension or transfer the value of your pension out of the plan.
If you elect to receive a monthly pension, any eligible vacation cash-out paid to you in the current year would be considered in determining your monthly pension.
If you wish to commence a monthly pension, please contact our office up to 6 months in advance to obtain a pension estimate and retirement forms reflecting your anticipated retirement date, or you can complete these forms through the “Complete Retirement Forms” feature of your CSSB Online Services account.
If you wish to transfer your pension value out of the plan, we will provide you with a statement of your termination benefits and the applicable forms after you leave employment. CSSB cannot determine the amount of your benefit or provide these documents until after your employer has notified us of your retirement date and provided information about your final service and earnings.
Arrangements to transfer the pension value must be made in time for the transfer to be completed by the last business day in December. Otherwise, locked in funds can only be transferred to a Life Income Fund, and non-locked in funds must paid as cash, with tax withheld.
Regardless of whether the monthly pension or the transfer option is selected, ALL forms and supporting documents must be received in early December so that your election can be processed by the last business day in December. Otherwise, certain defaults will apply.
Money Purchase Plan
Members with a CSSB Money Purchase Plan Account will be required to settle that account by the end of the year they turn age 71.
Locked in funds may be converted to a monthly annuity or transferred to a Locked-In Retirement Account or Life Income Fund.
Non-locked in funds may be converted to a monthly annuity (if eligible), refunded as cash (with tax withheld) or transferred to a Registered Retirement Savings Plan.
If transfer arrangements are not made in time for the transfer to be completed by the last business day in December, any locked in funds will be converted to an annuity, and non-locked in funds will be paid as cash, with tax withheld.
The Board’s staff is available to provide information and answer questions about the plan and your entitlements. The Board’s staff can be contacted by:
Mail: The Civil Service Superannuation Board
1200-444 St. Mary Ave.
Winnipeg MB R3C 3T1
Phone: 204-946-3200 or Toll Free (Canada): 1-800-432-5134
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