Termination

When you terminate employment with a Participating Employer(s) prior to meeting a retirement provision, you are entitled to a deferred pension benefit and may elect one of the following options:

  • Leave your pension benefit in the Plan and apply for a deferred pension at a later date, but no later than the first of the month following your 65th birthday 
  • Transfer the value of your pension benefit to a Locked-in Retirement Account (LIRA)
  • Transfer your pension benefit to an RRSP or receive a taxable lump sum payment. This option is only available if your pension is considered a small benefit under The Pension Benefits Act of Manitoba. Please refer to the Glossary - Pension Terms section for a definition of a small benefit
  • Transfer your pension benefit to another RPP through a reciprocal pension transfer agreement
  • Transfer your pension benefit to another RPP as a commuted value transfer, provided there is no reciprocal transfer agreement in place and basic eligibility requirements are met.

Note: Once you meet a retirement provision, you are no longer eligible to transfer the value of your pension benefit unless your pension benefit is considered a small benefit under The Pension Benefits Act of Manitoba.

Tax Withholding Rates

Income tax is deducted from your pension benefit if The Pension Benefits Act of Manitoba allows for the benefit to be taken as a cash payment. In most cases, the tax withholding rates for lump sum payments are:

  • 10% on amounts up to and including $5,000
  • 20% on amounts over $5,000 up to and including $15,000
  • 30% on amounts over $15,000.

© 2017 HEB Manitoba

 

Disclaimer - This website provides a basic overview of the Healthcare Employees' Pension Plan (HEPP) and the Healthcare Employees' Benefits Plan (HEBP) (collectively the HEB Manitoba Pension and Benefit Plans). Not all employers participate in all Plans. Please check your eligibility for benefits with your employer.

HEB Manitoba is a name notation registered by the Healthcare Employees’ Pension Plan – Manitoba and the Healthcare Employees’ Benefits Plan – Manitoba and under which each of their respective undertakings is carried out.

The information on this website is for convenience of reference only and has no official sanction. View our full disclaimer here.