All Public Employees Pension Plan (PEPP) members, including Variable Pension Benefit (VPB) members may transfer monies from another type of registered retirement plan into their PEPP account. These types of transfers are identified as voluntary transfers.
Transfers to PEPP can be done directly from Registered Retirement Savings Plans (RRSPs), Locked-in Retirement Accounts (LIRAs), other Registered Pension Plans (RPPs), Prescribed Registered Retirement Income Funds (pRRIFs), Life Income Funds (LIFs) or Locked-in Retirement Income Funds (LRIFs).
Employers are not required to contribute toward these transfers.
Transfers received for PEPP members remain inaccessible at PEPP as long as you are employed with a PEPP participating employer.
VPB members may transfer registered money into their VP Benefit account at any time and have full access to the money. VPB members must complete a Spouse’s Consent for Member to Transfer Outside Registered Monies into Variable Pension Benefit (VPB) form.
At termination or retirement:
- transfers from non-locked in sources (like RRSPs and RRIFs) made on or after January 1, 2001 will become accessible. You can use these monies in any manner you choose.
- transfers from locked-in registered pension plans (like RPPs and LIRAs) will remain locked-in and can only be used to provide a retirement income.
Provided you are still a PEPP member, transfers are accepted any time after termination or retirement.
All transfers in must qualify for administration under The Public Employees Pension Plan Act. This means that the exporting plan must agree to the monies being administered under PEPP legislation.
Non-locked-in transfers
All or a portion of an RRSP, including spousal RRSPs where the PEPP member is the annuitant, may be transferred to PEPP. A transfer is not subject to the maximum contribution limit imposed by the Income Tax Act (Canada) since the maximums were applied when the original RRSP was purchased.
Depending on the type of transfer account, there may be a fee imposed by the financial institution to close and/or transfer prior to maturity.
Locked-in transfers
Contact the administrator of the account or plan you wish to transfer from, to determine if they will allow the transfer into PEPP. The LIRA/RPP/LRIF/LIF Administrator will need to know that PEPP is governed by The Public Employees Pension Plan Act.
Investing your transfers
Your transfer will be invested according to your existing investment instructions, unless you notify PEPP of a change. Any changes you request will be applied to your entire account balance.
PEPP has several investment options. Deciding which PEPP fund to invest in is a personal decision. It is recommended that you complete the PEPP Member Investor Profile, which is a questionnaire designed to help you make your investment choices. It is not a substitute for professional financial advice; it is a
guide only. The Investor Profile and Fund Fact Sheets are available on the website.
Benefits of transferring to PEPP
- Consolidation of your registered monies may make managing your retirement investments easier.
- PEPP contracts professional investment managers. There is one low administrative fee that combines investment manager fees, custodian fees and administration fees.
- Like RRSPs there is protection from creditors. Your transfer cannot be attached or seized by creditors. The Family Property Act and The Enforcement of Maintenance Orders Act, 1997 are exceptions to this provision.
Other considerations
- You cannot access any money transferred into PEPP as long as you are employed with a participating PEPP employer.
- Pension plans require you to name your spouse as beneficiary unless a spousal waiver form is completed.
To learn more, read PEPP Talk - Transferring Money into PEPP or PEPP Talk - Reciprocal Transfer Agreements for details.