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The Pension Hub

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Transferring your Pension Plan to LIRA

When an individual leaves employment where they have contributed to a pension plan, they may have the option to transfer the commuted value of their pension benefits to a Locked-In Retirement Account (LIRA). The process may vary by provincial jurisdiction and the specific rules outlined in the pension plan and applicable legislation.

Here is a general overview of the steps involved:

  • Check whether you are eligible to transfer your pension benefits to a LIRA. Eligibility criteria may be outlined in the pension plan documents and are subject to pension legislation.

It’s crucial to consult with the pension plan administrator, a financial advisor, or legal professionals familiar with pension and retirement laws in your specific jurisdiction. They can provide guidance on the process, ensure compliance with applicable regulations,

What is a LIRA

A Locked-In Retirement Account (LIRA) is a type of registered retirement savings account that holds locked-in pension funds. Funds in a LIRA are typically transferred from an employer-sponsored pension plan when an individual leaves their job, and they are subject to specific regulations and restrictions.

Key features of Canadian LIRAs include:

  • The term "locked-in" refers to the restrictions placed on the funds in a LIRA. The money is earmarked for retirement and cannot be withdrawn as a lump sum in most cases.

It’s important for individuals with a LIRA to stay informed about the rules and regulations governing their account, especially as they approach retirement. Consulting with a financial advisor or a pension professional can provide personalized guidance based on individual circumstances and the specific regulations in the relevant province or territory.
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The Pension Book

The Pension Hub of Canada

Unlock the full potential of your pension plan and your financial future with Pension Hub of Canada.

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Canada has a complex and multifaceted pension landscape, with various pieces of legislation governing different types of pension plans at both the federal and provincial levels.

Below are some key aspects of Canadian pension legislation:

  • The Canada Pension Plan is a federal program that provides retirement, disability, and survivor benefits.

  • The CPP is governed by the Canada Pension Plan Act and administered by the Canada Pension Plan Investment Board (CPPIB).

  • The Old Age Security program is another federal initiative that provides a basic pension to Canadians aged 65 and older.

  • The OAS Act outlines the provisions for this program.

  • Each province and territory in Canada has its own pension legislation that governs employment pension plans (i.e., employer-sponsored pension plans).
  • For example, in Ontario, the Pension Benefits Act (PBA) regulates employment pension plans. Other provinces and territories have similar acts.
  • RRSPs are a type of personal savings plan for Canadians, allowing them to save for retirement in a tax-advantaged way.
  • The Income Tax Act contains provisions related to RRSPs.

  • TFSAs are another personal savings option with certain tax advantages.

  • The Income Tax Act also includes provisions related to TFSAs.

  • In addition to employment pension plans, some provinces have legislation that covers other types of supplementary pension plans, such as individual pension plans (IPPs) or multi-employer pension plans (MEPPs).

  • Each province and territory has its own regulatory authority responsible for overseeing pension plans and ensuring compliance with applicable legislation.

  • For example, in Ontario, the Financial Services Regulatory Authority of Ontario (FSRA) plays a role in pension plan regulation.

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PLANS

Canada Pension Plan

1

Pension Transfer

  • Unlock the full potential of your pension plan and your financial future with Pension Hub of Canada. Sign up today to receive expert advice and personalized solutions tailored to your unique needs.
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2

Canada Pension Plan

  • The Canada Pension Plan (CPP) was created in 1965 through federal-provincial negotiations. It was established to provide financial security and stability to retirees in response to growing poverty among retired Canadians. The target benefit at the time was to cover 25 per cent of a worker’s average lifetime earnings, up to a stated ceiling on earnings covered.
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3

Old Age Security

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Are Canadians getting the most out of CPP?

Pension Hub of Canada is an information service provided by Orca Wealth and Insurance Services. Independent financial advice since 1987.

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