ARCHIVED Pension Transfer Services Process for Compensation Advisors
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Note This document has been modified. The changes are identified by a vertical line "|". Revision (|)
(Revised June 16, 2011)
| Effective May 30, 2005, the administration of all pension transfer services activities (pension transfer agreements [PTA]/reciprocal transfer agreements [RTA]), including providing advice to employees or potential plan members, will be the responsibility of the Public Service Pension Centre (Pension Centre) in Shediac, New Brunswick.
| A Pension Portability Information Package has been introduced with the new pension transfer services (PTA/RTA) process to provide employees or potential plan members with general information on pension portability options, including any service buyback information. The document also includes the eligibility criteria, the performance standards, the associated timelines and the procedures. This information package is available at the following address: Pension Portability Package
A chart outlining the roles and responsibilities of all stakeholders involved in the PTA/RTA process has been included with this Superannuation Administration Manual (SAM) Special Bulletin. The following is an outline of the new process.
Pension Transfer Inquiry
- | A request for PTA/RTA information or related inquiries received by a compensation advisor, either from an employee or potential plan member, shall be directed to the Pension Centre. A Pension Transfer Advisory Service team has been established to administer all inquiries regarding pension transfer services (PTA/RTA).
- | The compensation advisor provides employees or potential plan members with the pension transfer services contact information, which has been included with this SAM Special Bulletin. The contact information includes the necessary information to reach the Pension Centre, such as the service hours, the toll free telephone number, the facsimile number, the mailing address, and the Web site address to access the Pension Portability Information Package.
- | Employees or potential plan members are referred to the Pension Centre even if an agreement is not in place or has not yet been negotiated. The Pension Centre is responsible for providing clients with the respective steps to follow to initiate the negotiation of an agreement.
- | The Pension Centre is responsible for determining the client's eligibility for a pension transfer agreement.
- | The Pension Centre is responsible for completing the employee's information section of the Appendix A/A1 - Request for transfer estimate.
- | The Pension Centre is responsible for providing service buyback estimates for all types of service when an employee is eligible for a pension transfer and referred to the Pension Centre. If the client opts to count the service under the service buyback provision, the Pension Centre will also provide the client with all respective forms required, including medical examination requirement.
| Compensation advisors continued to be responsible for providing all other service buyback estimates, including estimates for pensionable employment, until the centralization of service purchase in February 2009.
Pension Transfer Estimates
- | A request for a pension transfer estimate (PTA/RTA) received by the compensation advisor, either from an employee or a potential plan member, shall be directed to the Pension Centre. Their office will be responsible for the administration of all pension transfer estimate activities.
- | Calculation of the PTA/RTA estimates will be performed, with few exceptions, based on data available in the Public Works and Government Services Canada (PWGSC) system and data received from other plan administrators. However, as a proactive measure to expedite the pension transfer payment process, the Pension Centre may request certification of salary and service records from the compensation advisor while processing the PTA/RTA estimates.
- | An individualized information package on pension portability options, including the pension transfer estimate, service buyback information and the impact on the plan member's pension benefits will be provided to employees by the Pension Centre. The package will also include the eligibility criteria, the associated timelines, the procedures and the relevant forms.
| Pension transfer estimates will be provided by the Pension Centre to employees who are on leave without pay (LWOP) and are considering cessation of employment to pursue a pension transfer. However, cessation of employment is a requirement before the actual pension transfer payment can be finalized.
Election for balance of service unpurchased by the pension transfer
- | Upon finalization of the transfer, the Pension Centre will forward a copy of form PWGSC-TPSGC 2057 titled "Estimate of Cost for Service Buyback" to the plan member and/or form PWGSC-TPSGC 2097 titled "Service Buyback Notice". Compensation advisors will receive a copy of form PWGSC- TPSGC 2097.
- | If an employee wishes to elect for the balance of the service unpurchased by the pension transfer, the Pension Centre will ask the employee to complete and return the original copy of form PWGSC-TPSGC 3006 titled "Election Form for Elective Pensionable Service" to their office.
- | The compensation advisors are responsible to start deductions upon receipt of a "Notice to Start Service Buyback Deductions" (Public Works and Government Services Canada (PWGSC)- TPSGC 2270). Immediate action to start the deductions should be taken upon receipt of the form.
Salary and Service Certification
Transfer to the public service pension plan
- | While processing the PTA/RTA estimate, the Pension Centre may request a certification of salary and service records from the plan member's compensation advisor in anticipation that the client will proceed with the transfer after reviewing the estimate information. For this purpose, the "Confirmation of Salary and Service" (PWGSC-TPSGC 2020) and "Request to Certify a Salary Rate" PWGSC-TPSGC 2201) forms may be required by the Pension Centre.
- | The compensation advisor must provide the salary and service certification within 20 working days, as requested by the Pension Centre, to ensure that we are providing the best quality service to our employees.
Transfer from the public service pension plan
| Plan members, on termination of employment, should be advised to contact the Pension Centre for information on the possibility of a Pension Transfer out. In addition, as with all terminations of employment, compensation advisors must forward the "Termination/Retirement Information" (PWGSC-TPSGC 2386) form to the Pension Centre within five business days of the temination of employment transaction.
- | Upon completion of the pension transfer, the Pension Centre will update the pension system and inform the plan member accordingly.
- | For a pension transfer to the public service pension plan, a copy of the "Service Buyback Notice" (PWGSC-TPSGC 2097) form will be sent to the compensation advisor to be placed on the plan member's personnel file.
- | Any further pension transfer inquiries by the plan member shall be directed to the Pension Centre.
- | The Pension Centre will return telephone calls on pension transfer related general inquiries within 48 hours.
- | The compensation advisor must certify the salary and service within 20 working days from receipt of the Pension Centre request.
- Service standards have been established for various steps in the administration of the pension transfer services. These standards are outlined in detail in the Pension Portability Information Package.
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