When the UBC Pension Administration Office (PAO) is notified that you are leaving UBC, or if you are no longer eligible for Plan membership, you will be sent an information package detailing the decisions you need to make regarding your Plan benefit. If you don’t receive one, please contact us.
Confused about some of the terms or phrases used on this page? See our Important Terms page for definitions.
Information Package Details
The information package details the Plan benefit available to you. If you elect a deferred Monthly Lifetime Pension or, if you are eligible, a deferred Monthly Lifetime Pension with Lump Sum, you will need to contact our office and complete additional paperwork once you reach retirement age.
The following table below is an example of the “Election form” found in the package. Most of our members are only eligible for a deferred pension or lump sum. The dollar amounts in this example are illustrative only. Your letter will reference applicable amounts based on your salary and service up to the time you leave UBC.
|MONTHLY LIFETIME DEFERRED PENSION|
|At Normal Retirement||At Earliest Retirement (Age 55)|
|Payable at Age 65||Payable to Age 65||Payable After Age 65|
|The “At Normal Retirement” column shows how much you receive if you start your pension at age 65. The “At Earliest Retirement” column shows how much you receive if you start your pension at the earliest permitted date. In some cases different amounts are payable before and after age 65. The “Payable to Age 65” and “Payable after Age 65” columns show these amounts separately.|
|LUMP SUM (Please note that this option is not available once you turn age 55)|
|LIRA||RRSP||CASH||Total Lump Sum|
Monthly Lifetime Pension
Under this option, you receive a deferred pension with no lump sum transfer. This table shows the amount of your monthly pension if:
- you start this pension at age 65 (the Payable at 65 column), or
- you start the pension at age 55 (the At Earliest Retirement Age columns)
If you choose to receive a deferred pension, you must complete additional forms provided by the PAO, once you reach retirement age.
Under this option, you receive your entire pension benefit as a lump sum and you will not receive a deferred pension.
All or part of your pension benefit will be locked-in and eligible for tax-free transfer to a Locked-in Arrangement.
The column headed RRSP shows:
- the lump sum that is eligible for tax-free transfer to an RRSP or cash
The column headed CASH shows:
- the lump sum that is not eligible for RRSP transfer
Any part of a lump sum payment paid as cash is subject to withholding tax unless you have available RRSP room. Contact the Pension Administration Office for more information.
Please note that once you turn age 55, only members whose Plan benefit is considered a Small Pension at the time of their retirement are eligible for a lump sum option. This is in accordance with legislation by the BC Pension Benefits Standards Act.
If you choose to receive your non-locked-in benefit in cash
The PAO begins to process your pension after it receives the required forms – completed and signed – from you. If you choose to take all or part of your pension benefit as a lump sum, a cheque will be issued for the non locked-in portion.
If your signed paperwork is received by the middle of a month, the cheque will be dated the last business day of that month. If the paperwork is received in the last half of a month, the cheque will be available at the end of the following month.
What happens if my election form does not show a Locked-In column?
Some members, based on their membership information and according to rules under the Plan Text, may only qualify for a lump sum payment as full settlement of their rights under the Plan. Members with this option will not have a Locked-In amount, and as such, may choose to take their Total Lump Sum amount all as Cash (less withholding taxes), or as indicated in the Cash and RRSP columns on their election form.
Monthly Lifetime Pension with Lump Sum
Members, who made contributions to the Plan for any months prior to 1993, may be eligible to elect the option of taking a deferred pension and lump sum.
In keeping with pension legislation, part of a pension benefit is locked-in and must be used to provide lifetime retirement income and part is not. Under this option you receive:
- your own contributions that are not locked-in as a lump sum, and
- the remainder of your entitlement paid as deferred pension starting as early as age 55
See Monthly Lifetime Pension above for more information regarding this portion.