I'm in the process of applying for an ATS position at Nav Canada. I'm looking at making a career change and am looking into all the impacts of making the change. I am wondering if anyone has any experience with transferring a pension into the Nav Canada Pension Plan. Given the no contribution rate (from what I understand) into the pension plan, is there any benefit of doing a transfer? I'm currently federal government and the pension plan is listed as transferable. It might, however, be a hold over from the old Nav Canada Pension plan. Thank you for any help you might have!
12 years ago I came from the UK and could not transfer into the NavCanada pension plan and to my knowledge nothing has changed. I therefore left the pension frozen in the UK increasing with inflation.
Last year several of us brought the pension over using the QROPS scheme and the money is in a locked RRSP (registered retirement saving plan) which is accessible at age 55 at which point tax will be paid on the withdrawn amount if you decide to take some out.
The Plan B pension which you would enter does not have 9% taken from your salary and placed within a scheme like Plan A however I believe the same provider will take money you choose to put aside and invest it in the same way that it invests the Plan A guys money ie in parallel . therefore you should get the same returns as the old hires however the difference is your plan would not be protected in the event of a market tank whereas the Plan A money is. The advantage of having your pension here in C$ is you are not at the vagaries of the exchange rate and you can, at 55, take out what you want and not what your scheme tells you you can have.
One problem, QROPS is on hold I believe with new legislation coming after April 18. Good luck with whatever you choose to do.
All of the above is my understanding of the situation but I am am prepared to be corrected.