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How to Transfer Money into the Public Employees Pension Plan (PEPP) in Saskatchewan

Transferring money into your Public Employees Pension Plan (PEPP) account can help consolidate your retirement savings and simplify the management of your investments. This guide will walk you through the process, outlining the steps, requirements, and considerations to ensure a smooth and efficient transfer. Whether you’re moving funds from an RRSP, LIRA, or another pension plan, this guide provides all the information you need to make the transfer successfully.

Step 1: Understand Eligible Transfers

Before initiating a transfer, it’s important to know which types of accounts are eligible:

• Eligible Accounts: You can transfer funds from Registered Retirement Savings Plans (RRSPs), Saskatchewan Locked-in Retirement Accounts (LIRAs), other Registered Pension Plans (RPPs), and Prescribed Registered Retirement Income Funds (pRRIFs) into your PEPP account.
• Ineligible Accounts: PEPP cannot accept transfers from Locked-in RRSPs/LIRAs, Life Income Funds (LIFs), or Locked-in Retirement Income Funds (LRIFs) if the funds are locked-in outside Saskatchewan.

Step 2: Contact PEPP

Before proceeding with any transfers, it’s essential to contact PEPP:

• Initial Contact: Inform PEPP of your intention to transfer funds. This step is crucial, especially if you’re transferring from a Locked-In Retirement Account (LIRA) or a Registered Pension Plan (RPP). PEPP will help determine if the funds can be transferred under their legislation.

Step 3: Complete the Necessary Forms

To initiate the transfer, you’ll need to fill out specific forms provided by PEPP:

• For Non-Locked Transfers: PEPP will provide you with the Canada Revenue Agency (CRA) T2033 form.
• For Locked-In Transfers: PEPP will provide the CRA T2151 form.

Instructions for Completing the Forms:

1. Personal Information: Fill in your personal details in the form's required sections.
2. Financial Institution’s Section: The financial institution or pension plan that holds your current RRSP, LIRA, or RPP must complete the “Transferor” section of the form.
3. Submission: The financial institution will send the completed form and the transfer amount directly to PEPP.

Step 4: Investing Your Transfers

After the funds are transferred to PEPP:

• Investment Allocation: Your transferred funds will be invested according to your existing PEPP investment instructions. If you want to change how your funds are invested, notify PEPP as soon as possible.
• Investment Options: PEPP offers various investment funds. You may consider completing the PEPP Member Investor Profile, a questionnaire designed to help you choose the best investment options based on your financial goals.

Step 5: Special Considerations for VPB Members

If you are a Variable Pension Benefit (VPB) member:

• Spouse’s Consent: You must complete the “Spouse’s Consent for Member to Transfer Outside Registered Monies into Variable Pension Benefit (VPB)” form available on the PEPP website.
• Access to Funds: VPB members have full access to transferred funds at any time, unlike other members whose funds remain inaccessible until termination or retirement.

Step 6: Monitor and Confirm the Transfer

Once the transfer is initiated:

• Confirmation: PEPP will send you and your financial institution a confirmation once the transfer is complete.
• Review: Ensure that the transfer has been processed correctly and that your funds are invested according to your preferences.

Benefits of Transferring to PEPP

• Simplified Management: Consolidating your retirement funds into PEPP can simplify the management of your retirement savings.
• Professional Management: PEPP employs professional investment managers, offering the advantage of expert fund management with a single, low administrative fee.
• Creditor Protection: Funds transferred to PEPP are protected from creditors, offering an additional layer of security.

Other Considerations

• Inaccessibility During Employment: Transferred funds remain inaccessible as long as you are employed by a PEPP participating employer, except for VPB members.
• Spousal Beneficiary Requirement: You must designate your spouse as the beneficiary unless a spousal waiver is completed.

FAQs

Can I transfer funds from any RRSP into PEPP?

• Yes, you can transfer from any RRSP, including spousal RRSPs where you are the annuitant.

What happens if the funds are locked in a different province?

• PEPP cannot accept locked-in funds from outside Saskatchewan.

Are there any fees associated with the transfer?

• Some financial institutions may charge a fee for closing or transferring funds before maturity. Check with your financial institution.

Conclusion