Reddit Reddit reviews The Pension Puzzle: Your Complete Guide to Government Benefits, RRSPs, and Employer Plans

We found 1 Reddit comments about The Pension Puzzle: Your Complete Guide to Government Benefits, RRSPs, and Employer Plans. Here are the top ones, ranked by their Reddit score.

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The Pension Puzzle: Your Complete Guide to Government Benefits, RRSPs, and Employer Plans
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1 Reddit comment about The Pension Puzzle: Your Complete Guide to Government Benefits, RRSPs, and Employer Plans:

u/HandcuffsOfGold ยท 7 pointsr/CanadaPublicServants

I don't know any specifics about CSIS nor do I know whether employees of that organization have a DC plan, but I do know a bit about pension plans and can answer your questions regardless:

>Is this true? If so, how does it affect those who are retired?

Changes to pension plans are generally forward-looking with no impact on previously-accrued benefits. When a plan is converted from DB to DC, employees still receive credit for all years of service up to the point of the conversion, and their future pension is comprised of two portions - the defined benefit portion (paid out as a calculation of years of service multiplied by a salary factor, again multiplied by a percentage), and a defined contribution portion (provided to the employee as a lump sum to be invested).

>And most importantly, if I already have a defined pension with another department, how will this affect it?

If you have an existing DB plan, it'd work the same way as it would if you left government employment and joined any other employer with a DC plan - you'd be able to transfer your pensionable service if there's an agreement in place between both plans, or you'd retain your pensionable service in the DB plan and join the DC plan as a new member. You could also, if you wanted, take a cash payment (transfer value) of the value of your DB pension to put into an individual retirement account, subject to tax sheltering limits.

It's a little outdated, but I recommend picking up The Pension Puzzle if you want more information about the different types of pension plans and how they work. It's an older book, so your library probably has a copy.