Transferring the value of your benefits
The following conditions apply to transfers from your simplified pension plan (SIPP).
When can transfers be made?
Locked-in account
You can transfer all or a part of the sums credited to your locked-in account as of age 55, even if you are still an active member of the plan.
However, the entire balance of the sums credited to your locked-in account must be transferred when your active membership ends. The transfer must be made within 90 days after the date on which your statement of the end of active membership is sent.
Not locked-in account
With a few exceptions, you can, at any time, transfer a part or all of the sums credited to your not locked-in account, even if you are still an active member of the plan.
Exceptions for the transfer of member contributions
It may be that your member contributions cannot be transferred before you turn 55 or before the end of your active membership (whichever comes first), except to take advantage of a Home Buyers Plan (HBP) or a Lifelong Learning Plan (LLP).
In all cases, the entire balance of the sums credited to your not locked-in account must be transferred when your active membership ends. The transfer must be made within 90 days after the date on which your statement of the end of active membership is sent.
Once the financial institution has been informed that your active membership has ended, the institution has 60 days to send you a statement. The statement includes information on the balance of the sums credited to your locked-in and not locked-in accounts.
To whom the transfer application is made
You must make your application for a transfer to the financial institution that administers your SIPP.
You can find out who to contact by referring to your statement of cessation of active membership or by using our online service for Pension plans supervised by Retraite Québec.
What instruments can receive a transfer from an SIPP?
You can choose the destination of a transfer of the sums credited to your locked-in and not locked-in accounts.
The following choices are available:
- a locked-in retirement account (LIRA)
- a life income fund (LIF)
- a life annuity contract (deferred or immediate) purchased from an insurer
- the supplemental pension plan sponsored by your new employer, if that plan accepts transfers
- an RRSP or a registered retirement income fund (RRIF), for sums that can be refunded to you
Entitlement to a cash payment (refund)
In some situations, you are entitled to a cash payment (refund).
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