Some SPP members will leave the Plan before retirement if they change employers, move to a new position at UBC (that is not eligible for the SPP) or relocate to a different country. Whatever the reason, there are decisions that you will need to make about the benefits you have accrued with the SPP.
If You Are Under Age 55
As soon as you know that you are going to leave the SPP, please inform the UBC Pension Administration Office. You will receive an information package in the mail approximately four to six weeks after the month in which you leave. The information package will include:
- your options for receiving your accrued Plan benefit,
- your calculated Plan benefit under each option, and
- the forms you need to complete to indicate your decision
Most members under age 55 will have a choice between a Monthly Lifetime Pension or a Lump Sum. The options that you are eligible for will depend on several factors such as your length of service and when you began making contributions to the Plan.
Monthly Lifetime Pension
Leave your earned benefit in the Plan and receive a deferred pension starting as early as age 55 (earliest retirement age).
Receive a lump sum equal to the greater of the value of your deferred pension (commuted value) or a minimum contribution refund of 1.5 times your contributions plus interest. The interest applied to member contributions is a Five-Year Bank Rate.
If you are/were a member of the Plan and made contributions prior to 1993, you may be eligible for an option called Monthly Lifetime Pension with Lump Sum, which is a combination of a deferred pension and lump sum.
*All lump sum payments from the Plan are subject to B.C. Pension Benefits Standards Act regulation and you may be required to transfer a portion or the entire amount into a Locked-in Arrangement, which must be used to provide retirement income. Once you turn 55, the lump sum option is no longer available unless you have a small pension.
Do I Have to Decide Today?
If you are not able to make a decision on your option(s) today, you may decide to defer your decision to a later date. There are some things you should consider if you decide to defer your decision to a later date, such as:
- The Lump Sum option is not available once you turn age 55, unless you have a Small Pension at the time of retirement, as legislated by the B.C. Pension Benefits Standards Act.
- It is important that you keep your address up-to-date with the UBC Pension Administration Office so that we are able to communicate with you any changes regarding your Plan benefit.
- Once you turn 55, and subsequently decide you would like to retire, you need to inform the UBC Pension Administration Office, so that we can provide you with an updated calculation of your Retirement options based on your retirement date.
- Your pension is subject to an indexing adjustment as approved by the SPP Pension Board and the Plan’s ability to finance it.
If You Are Age 55 or Over
Please contact the UBC Pension Administration Office as soon as you know your retirement date (or the date you will leave UBC after age 55). If you have not received a Pension Illustration/Estimate of your retirement benefit at the time of your call, please inform us and we will send you an information package.
If you have not attended a Retirement Information Session (RIS), you may wish to set up one when you call so that a member of the SPP team can fully explain the options available to you at retirement.
For further information on retiring, please refer to the Retiring page.