I Have Less Than 5 Years of Service
If you leave your SFPP employer before you have 5 years of pensionable service, 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.
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. After this payment, you will no longer have a benefit 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 (from a Locked In Retirement Account (LIRA) for instance) 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 T2033 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 transfer agreements in place with the Local Authorities Pension Plan (LAPP) and the Royal Canadian Mounted Police (RCMP) Pension Plan. If you start working for an employer who participates in LAPP or start working with RCMP, you may be eligible to transfer your service. After you join LAPP or the RCMP Pension plan, contact us for the next steps.
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.