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Cost and Tax Considerations

The money available to transfer under the agreement is based on the actuarial value of your pension. The value reflects your salary, your credit and plan features, such as early retirement options, inflation protection and survivor benefits. Because of different plan features, the credit you receive in your new pension plan may not equal the credit you have in Ontario Teachers'.

Shortfall of funds

If there is a shortfall of funds, you may be able to top up all or part of the difference.

Tax implications

The transfer of pension credit for service accumulated after 1989 may result in a past service pension adjustment (PSPA). A PSPA will reduce your RRSP contribution room. A PSPA is usually generated if your new pension plan and Ontario Teachers' have different benefit formulas, or if you top up any shortfall of funds being transferred.

A PSPA must be approved by the Canada Revenue Agency (CRA) before the transfer can be completed. CRA usually takes 60 to 90 days to do that. If the PSPA is not approved, you may not be allowed to transfer credit.