I Have Fewer Than 2 Years of Service
If you leave your SFPP employer before you have two years of pensionable service (five years, if you left before April 1, 2020), you are not eligible to collect an SFPP pension (unless you are 65+ when you leave the Plan).
You will be sent a Termination Statement outlining your options, as listed below. If you don't respond within 90 days, your funds will remain with SFPP and earn interest.
Leave Your Pension Contributions and Interest Earned With SFPP
If you return to the Plan, any new pensionable service you earn will be added to your existing service. Once you reach two years of pensionable service in SFPP, you'll be vested and eligible to collect a lifelong pension.
Receive a Refund of Your Contributions With Interest
Your contributions, with interest, will be paid to you by cheque or direct deposit, with income tax withheld as applicable. After this payment, you will no longer be eligible for benefits with SFPP.
Transfer Your Contributions With Interest to a Registered Retirement Savings Plan (RRSP)
You can transfer your contributions to an RRSP. No income tax will be withheld from this transfer.
Please note: If you previously transferred service into SFPP or used locked-in funds (such as those from a Locked-In Retirement Account (LIRA)) to buy prior service, those funds cannot be transferred to an RRSP. They will need to be transferred to another locked-in vehicle.
You will need the transfer form provided with your Termination Statement or CRA's T2151 Direct Transfer form.
After this transfer, you will no longer have a benefit with SFPP.
Transfer Your Pension Benefit to Another Pension Plan
SFPP has a transfer agreement in place with several public sector pension plans across Canada through the National Transfer Agreement (NTA), as well as a transfer agreement with the Royal Canadian Mounted Police (RCMP) Pension Plan. If you start working for an employer who participates in one of those pension plans, you may be eligible to transfer your service. After you join your new pension plan, contact them for the next steps.
After this transfer, you will no longer have a benefit with SFPP.
Time-Sensitive Considerations
Leaves of Absence
You have 30 days from the date you leave the Plan to apply to buy a leave of absence. If you're already paying for a leave, you have 90 days from the date you leave the Plan to complete that purchase.
Prior Service Purchases
If you intend to buy prior service (referred to as a buyback), you must notify us before you leave your SFPP employer. If you're already making prior service payments, you'll have 90 days to complete your buyback purchase.
In both scenarios, if you don't complete the purchase, you'll be credited only for the amount of service for which you have paid.