Defined Benefit Pension Plans
Many Defined Benefit Pension Plans will have a commuted value.
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The commuted value is the amount of money that the pension plan determines is owing to an employee should the employee decide to leave the plan all together. For many individuals, the commuted value of their pension could be of significant value.
We recently had several clients who, only after very careful consideration, elected to take commuted values worth several millions of dollars.
Any decision to remain in a DBPP or leave the plan should only be decided after all options have been examined and discussed with a financial expert. Some important topics you will want to discuss are:
- Conservative Retirement Income and Pension Plan Comparisons
- Annuity Comparisons
- Taxation and maximizing any available tax benefits
- Plan Health Benefits, if available
- Locked-In Retirement Account options
- Your age and work/retirement time frame
- Effects on your Estate planning
National Bank Financial – Wealth Management (NBFWM) is a division of National Bank Financial Inc. (NBF Inc.), as well as a trademark owned by National Bank of Canada (NBC) that is used under license by NBF Inc. NBF Inc. is a member of the Canadian Investment Regulatory Organization (CIRO), the Canadian Investor Protection Fund (CIPF), and a subsidiary of NBC, a public company listed on the Toronto Stock Exchange (TSX:NA).Products and services of the National Bank Financial — Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. All products and services are subject to the terms of the applicable agreement. The information in this Website is subject to change without notice. This communication does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should consult with their financial adviser to determine if these securities may lawfully be sold in their jurisdiction. This information is intended only for residents that reside in the provinces of Alberta, British Columbia, Ontario, Manitoba and Saskatchewan. NBF is not a tax advisor, and clients should seek professional advice on tax-related matters, including their personal situation. Please note that comments included in this letter are for information purposes only and are not intended to provide legal, tax or accounting advice. The comments reflect the opinion of their author and may not reflect the views of NBF. The information contained herein has been prepared by Jim Whitehouse, a Senior Wealth Advisor and Portfolio Manager at NBF. Insurance services and products are provided by National Bank Insurance Firm (NBIF). NBIF is not a member of Canadian Investor Protection Fund, and the products sold or provided by NBIF are not guaranteed by the Canadian Investor Protection Fund.
