Pension Transfers

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Loopy212
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Pension Transfers

#1 Post by Loopy212 » Sun Mar 19, 2017 10:06 am

Hello all,

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!
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controllercrazy
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Re: Pension Transfers

#2 Post by controllercrazy » Sun Mar 19, 2017 5:54 pm

same boat as you, only i can't seem to find an answer here.

Any help would be appreciated - though I'll probably ask when I start if I don't hear back
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kevenv
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Re: Pension Transfers

#3 Post by kevenv » Mon Mar 20, 2017 7:08 am

16 years ago they refused me and another of my co workers the ability to transfer government pension / buy back time. I haven't heard of anyone doing it since, especially now with the new hires no contribution pension plan.
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robshelle
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Re: Pension Transfers

#4 Post by robshelle » Mon Mar 20, 2017 9:11 am

I talked to a fellow employee, who actually took a break in service for about 5 years. When he came back, we were on the Plan B pension for new hires, and for him he would have had to pay an obscene amount for the 5 years missed, only to go from the original plan to plan b. So he would have paid back as if he was in the original pension, but when retirement comes he would only be paid out at the reduced plan. No thank you, he didn't re-buy back into it.
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Geoff Vader
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Re: Pension Transfers

#5 Post by Geoff Vader » Tue Mar 21, 2017 5:57 pm

Hi Loopy212,

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.
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Dyngwal
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Re: Pension Transfers

#6 Post by Dyngwal » Wed Mar 29, 2017 6:17 am

Pensionable time can be bought back, I did it 2 years ago (left RCAF, bought back almost 10 years of service). PM sent to OP.
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