Since 2001 we have helped hundreds of people who worked in the UK to transfer their company pensions, tax free, to a Canadian Registered Retirement Saving Plan (RRSP).
Follow these three steps and you will soon be enjoying the benefits of having your pension plan in Canada.
There are basically three types of pension plan:
1. Occupational Plans
Part of a remuneration package, an employer provides a retirement plan for employees (sometimes employees are allowed or are required to make extra contributions).
2. Personal Plans
Individuals (and or employers) make contributions which are invested to provide retirement income, and
3. Old Age Pensions
Occupational Pension plans can be transferred to a special type of Canadian Registered Retirement Savings Plan (RRSP).
Personal Plans can also be transferred provided that a contribution has been made by an employer (i.e. a personal plan cannot be transferred if only the beneficiary (employee) has made contributions.
The UK State or “Old Age” Pension can be paid to beneficiaries in Canada but it cannot be transferred as a lump sum. For more details see https://www.gov.uk/state-pension-if-you-retire-abroad/how-to-claim
Any pension that has already started to pay out cannot be transferred.
The above is not intended to be a definitive analysis of tax law. The comments contained herein are general in nature and professional advice regarding your particular tax position should be obtained in light of your specific circumstances.
You wish to transfer an occupational pension plan and/or a personal pension plan that an employer has made a monetary contribution (i.e. you are not the only person that has made contributions). To effect the transfer on your behalf, an Investment Adviser will require the following information:
N.B. If you intend to transfer multiple plans, you should have the last four information items for each of the plans.
If you do not have this information, you will need to contact your Pension Plan Administrators. Feel free to contact us if you need some help.
When you have collected all of the information detailed in Section 2 for each plan that you wish to transfer, you are ready to initiate the transfer process.
Please call or e-mail us.
We will review the information that you have collected with you and talk about options. This will include transferring to an RSP or a self-invested plan and choosing an investment adviser if you do not already have one. Any fees and expenses will be fully disclosed in advance before you make the final decision to transfer your plan.
Once the investment advisor is selected and you are introduced he/she will work with you to review your financial goals. Forms will be completed, signed and sent to the pension plan trustees/administrators. Following the required process by the transferring company, the money will be sent by the old trustees directly to the new trustees and the investment adviser will invest the monies in accordance with your goals. Unfortunately the time to completion is variable and cannot usually be predicted. We have transferred pensions in a couple of weeks. Some have taken two months.
After the funds have been transferred you will receive regular statements and your investment adviser will be in regular contact to ensure your pension goals are being met.
An international banker with worldwide experience. Emigrated to Canada in 1987 and runs his own successful consultancy advising financial institutions. Ron has an M.B.A. from Cranfield University, England and is qualified as an Associate of the Chartered Institute of Secretaries and Administrators and as an Associate of The Institute of Bankers in Scotland. Based in Toronto, Canada.
A former partner in a major Toronto investment house with more than 30 years in the business. A former chairman of the Investment Dealers Association of Ontario. Based in Toronto, Canada.
A business consultant specialising in providing strategic and organizational support and advice with over 30 years experience in industry and finance. Currently a senior associate with a consultancy, he is a graduate of the University of Wales and a post-graduate of the Management Centre at the University of Bradford. Based in Kent, England.