Termination

When you terminate employment with a Participating Employer(s) before meeting a retirement provision, your options may include: 

• Leaving your pension benefit in the Plan and applying for a deferred pension at a later date, but no later than the first of the month following your 65th birthday. 
• Transferring the value of your pension benefit to a Locked-in Retirement Account (LIRA). 
• Transferring your pension benefit to an RRSP or receiving a taxable lump sum payment. 
• Transferring your pension benefit to another RPP through a reciprocal pension transfer agreement.
• Transferring your pension benefit to another RPP if the receiving plan allows it.

After December 31, 2017 

If you terminate membership in the Plan after December 31, 2017, you will have 180 days to elect to transfer your lump sum pension benefit to a LIRA. After 180 days you will no longer have the option to transfer your lump sum pension benefit out of the Plan. Your only option will be to take a monthly pension any time after age 55. 

If you take any part of your pension benefit out of the Plan, you will not be eligible to reinstate later if your date of reemployment is on or after January 1, 2020.

Tax Withholding Rates

Income tax is deducted from your pension benefit if The Pension Benefits Act of Manitoba allows for the benefit to be taken as a cash payment. In most cases, the tax withholding rates for lump sum payments for Canadian residents are:

• 10% on amounts up to and including $5,000
• 20% on amounts over $5,000 up to and including $15,000
• 30% on amounts over $15,000.