Termination Application Form
What is a Termination Benefit?
A termination benefit is:
An unreduced deferred pension starting at age 65 equal to the pension you earned to the date of termination, or
A reduced pension starting between ages 55 and 65, subject to the applicable early retirement reduction, or
A transfer of the lump sum value of the pension you earned out of the Plan.
Your termination benefit may be subject to locking in provisions if the commuted value exceeds 20% of the YMPE.
If the funds are being transferred to a financial institution, a “T2151 Direct Transfer of a Single Amount Under Subsection 147(19) or Section 147.3” will be required.
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What options will be available to me after I apply for a Pension Termination?
You will be provided with a statement presenting multiple options to you. You will always be given the option to leave your pension with the Plan until your retirement date, as early as age 55 with applicable reductions.
Yearly Maximum Pension Earnings (YMPE) amount for 2025 is $71,300 (20% of YMPE = $14,260)
The lump sum transfer options that will be available to you are dependent on the value of your CV. If the CV exceeds 20% of the Yearly Maximum Pension Earnings (YMPE) amount for the year you are terminating in, you will be given the option of a locked-in transfer to a Locked-In Retirement Account (LIRA).
If your pension amount is under 20% of the Yearly Maximum Pension Earnings (YMPE) amount for the year you are terminating in you will be given the option of a cash payment or an RRSP transfer.
When am I eligible for a termination benefit?
You are eligible to apply for a termination benefit if you:
Are under age 55; and
Have not accrued a total of 350 Hours of Covered Employment in the previous 2 Plan Years
Your Application for Termination Benefit is eligible on the first day of the month following the date that the Plan Office receives an Application for Termination Benefit.
You must submit an Application for the Termination benefit, found below, to the Plan Office.