Pension options after leaving your job
Discover the many different options available to you for the contributions you've made into the plan.
Transfer your commuted value
The commuted value of a pension benefit is the amount of money that needs to be set aside today, using current interest rates, to pay for your future pension when you retire.
If you chose to transfer your commuted value, your financial institution must certify on the Termination selection statement that the funds will be locked-in in accordance with the Pension Benefits Standards Act. Locked-in means the pension plan funds must be used to provide a lifetime pension benefit.
When we calculate a commuted value, we guarantee the amount quoted until the guarantee date on your Termination selection statement. We must receive your signed selection and required documents by this date. If we don’t, we will need to recalculate a commuted value for you, if you are still eligible. The recalculated value will be higher or lower, depending on interest rate fluctuations since the original calculation.
You are not eligible to receive a commuted value payment once you reach the earliest retirement age of 55.
The BC Pension Corporation, following Standards of Practice prescribed by the Canadian Institute of Actuaries and approved by the WorkSafeBC Pension Plan Pension Committee, calculates the commuted value using the 2014 Canadian Pensioners Mortality Table with generational mortality projection using improvement scale CPM-B on a 45% male 55% female unisex basis.
The Income Tax Act limits the amount of a commuted value payment that can be tax-sheltered. Any part of your commuted value over the limit must be taken as a cash payment and will have income tax withheld.
If you choose a commuted value payment for any period of service, you cannot reinstate the commuted value transfer if you return to work at WorkSafeBC and rejoin the plan.
Watch the video to learn more about how the decisions you make today can impact your retirement income in the future.