CPP - pension question
 

My first time here in over 2 years. I guess that means it's all going good. ;)
Anyway, hubby recently changed jobs. He had been paying in to a company pension for the time there, and now has an amount that he has to decide what to do with. The new company doesn't do the same, so, we have to figure out where to put the money.
The new company said that he might be able to start drawing the money he has accumulated with the old company (hubby will be 61 this year), but I'm really not sure. Anybody able to shine some light on the pension thing for us?

Re: CPP - pension question
 

One can draw CPP at 60 at a reduced rate. A financial advisor would be best placed to tell you using full knowledge of your financial circumstances. If he has been investing in RRSP with matching from an employer, the RRSP stays the same, whether it is worth it, depends on your personal circumstances. Income from all sources is cumulative for tax purposes. You can apply in writing to get a CPP estimate, takes a few weeks to come through. Some pension funds are retained in the company (e.g.Sears), some work out better than others.
It would be best in my view to develop a strategy with an adviser, each individuals circumstances are different.

Re: CPP - pension question
 

Company Pension Plans typically have different rules depending on whether the plan was a Defined Benefit plan or a Defined Contribution plan.
In the case of a Defined Benefit plan you normally can't move it after so many years in the plan and after reaching age 55. My Company shut down the DB pension plan 4 years ago and I tried to get the money transferred out of the plan but because I was 58 at the time I was not allowed to transfer out. It goes up with the retail price index each year, and because I plan to retire at age 63 in March I will get a pension bridge until age 65. It was probably best that I wasn't able to transfer it, in hindsight.
Since the DB pension closed I then had to start into the Company Direct Contribution plan. When I retire in March I then have the option to take that money as a drawdown pension or transfer it into another financial institution. I am seriously thinking about doing that and consolidating with my external RRSP's held elsewhere.

Re: CPP - pension question
 

The poster is a little unclear ...... the heading says CPP, but her OP says "company pension"


CPP is not a company pension plan ............. Canada Pension Plan is a government pension plan.

Some companies pay part of the premiums, others do not.

Aviator's advice re drawing reduced CPP at 60 was based on the title. But his advice to consult a financial planner is the best advice, IMHO

Perhaps TheCanes would like to clarify the actual situation??

Re: CPP - pension question
 

To add, some companies have their own pension plan, some match RRSP contributions. As you say the OP is extremely vague.