Locked Pension Funds in Canada

[ljrascoe 0]

Hi Everyone, I am hoping someone can help me.

I was approved of my greencard here in the US last week.

I have locked in pension funds still in Canada, from where I left my work to move here with my husband.

Does anyone know if I am allow to take those funds out now that I no longer live in Canada?

Any suggestions or information will be helpful?

I have no problems leaving them there until I can retire and then draw upon them but just wondering if I can cash them out?

Thanks

Lana

[Chica Yeyé 41]

I was able to cash my Alberta Public Pension plan; but not a dime out of my CPP.

Let's see if someone with more wisdom chips in with ideas !!!!

[Kathryn41 3,205]

Nope. I have locked in pension funds as well in Canada in two separate plans as well as CPP. I am just leaving them there until I am old enough to claim them as retirement funds.

[Krikit 1,164]

Work-related pension funds must remain locked in an investment account in Canada. Speak to your former HR benefits person. You may be allowed to transfer the funds to an investment portfolio through a financial advisor. I use Halton Financial Group. They are very familiar with Canadian and US law (licensed in both Canada and the United States) and have lots of Canadian clients living in the US.

ETA: I can also go online and check on how my portfolio is doing in real time, rather than being dependent upon a quarterly report or a phonecall.

Edited February 7, 2008 by Krikit

[Udella&Wiz 325]

Good lord - are you reading my mind? I am having this very same issue.

I left work back in Nov, moved, received the paperwork for the 2 tiers of my pension, both locked in. All good. I sent the first paperwork back indicating my transfer choice to new Plan 'X' Dec 11.,,,,,, hear nothing

Jan 15 - I call to talk about the 2nd portion of the plan and they inform me that because I am not longer a canadian resident (defined as on Canadian soil - nothing to do with taxes) I cannot authorize them to transfer my OWN money. So I say..well, it's ok..back in Dec I already opened Plan 'X' and that's where I want to put this money as well.

She looked and said...'we have no record of that'. LOVELY. She goes on to explain that either I can go visit the nearest Canadian consulate to 'pretend' that I'm on Canadian soil to sign it or I can authorize someone to be my POA. Can you picture me pulling up to the Can. consulate in Washington DC and saying 'Do you mind if I come in for a Timmies? I just need to sign my pension paperwork and be on my way'....yah right

I contacted the first set of people who then said, yes, we've found it..we're processing it and you will see the new plan shortly. Today, they finally decided that I need to have the POA as well. I am pissed off to say the least.

More ticked because I have to write the letter - find 2 people to witness it (cannot be my husband or any other relative here) and frankly I don't know 2 people. Don will take it to work and see if 1 of our World of Warcraft friends mind signing. I'm sure they won't mind of course

Then send it to Canada to my little brother, have him sign it,,,then he has to truck down to my old place of work, which is also the pension provider...Sun Life Financial and then he has to be involved with authorizing MY financial stuff

All hopefully in time before the 3 month window close and I am screwed for life with the default retirement choice that they offer slackers

Oh...I am mad

[Chica Yeyé 41]

So I have a question -- will we ever get the $$$$ the lovely Canadian government took away for the CPP when we retire? Or will they just pocket it?

[Krikit 1,164]

So I have a question -- will we ever get the $$$$ the lovely Canadian government took away for the CPP when we retire? Or will they just pocket it?

We'll get it. We just need to apply for it when it's time.

[Udella&Wiz 325]

Ahh...but will we get it if we're US citizen's? That is my concern too.....I've made contributions for good long time...does that negate my right to it.

Also - anyone know....in the US, am I eligible for Old Age security when I retire in like 40 years if not a US citizen? I guess it will always be deducted from my pay

Edited February 7, 2008 by Udella&Wiz

[Chica Yeyé 41]

So I have a question -- will we ever get the $$$$ the lovely Canadian government took away for the CPP when we retire? Or will they just pocket it?

We'll get it. We just need to apply for it when it's time.

I am worried about the fact that neither Bren or pretty-Me were Canadian citizens --- wonder how this works. For all teh time we were in grad school we had the same deductions as everyone else, not that it means much.

[Flames9_RN 358]

I have no clue on claiming CPP when you no longer reside in Canada, but awhile back some one posted a link that explained it! There is some formula they use, based on your claimable years working in Canada and the USA.

[Krikit 1,164]

Ahh...but will we get it if we're US citizen's? That is my concern too.....I've made contributions for good long time...does that negate my right to it.

Also - anyone know....in the US, am I eligible for Old Age security when I retire in like 40 years if not a US citizen? I guess it will always be deducted from my pay

Taken from this post:

Dual citizenship does not affect your CPP and OAS benefits as

long as you meet the conditions mentioned above.

I have a lot of saved links on the topic which provide excellent information. Here's another excellent one:

CPP & OAS Pension, Canada/US Treaty and what it means to you

Len, I haven't done any research on your particular situation, but just at a glance it appears you are not excluded from applying. You can let us know, though.

[zyggy 9]

Basically you have a choice...

You can get the $ in CPP from your credits in Canada

You can get the $ in SOcial Security from your credits in the US

Or you can combine the credits from the two and get a bigger benefit in the US or in Canada through the treaty (depending on where your residence is)...

It's up to you..

Edited February 7, 2008 by zyggy

[Chica Yeyé 41]

Basically you have a choice...

You can get the $ in CPP from your credits in Canada

You can get the $ in SOcial Security from your credits in the US

Or you can combine the credits from the two and get a bigger benefit in the US or in Canada through the treaty (depending on where your residence is)...

It's up to you..

Oh cool. Is it automatic or do I have to jump through 10 thousand hoops? Another question I can think of is: both our Canadian SIN's had an expiry date (next month actually) -- how does that factor in the equation?

[zyggy 9]

Basically you have a choice...

You can get the $ in CPP from your credits in Canada

You can get the $ in SOcial Security from your credits in the US

Or you can combine the credits from the two and get a bigger benefit in the US or in Canada through the treaty (depending on where your residence is)...

It's up to you..

Oh cool. Is it automatic or do I have to jump through 10 thousand hoops? Another question I can think of is: both our Canadian SIN's had an expiry date (next month actually) -- how does that factor in the equation?

There are hoops involved. But I'm not exactly sure how it works. You paid into the system an they're not giving those numbers to anyone else. The expiry coincides with your legal status to work in Canada... whether the SIN's expire or not is not of consequence..

[Chica Yeyé 41]

Basically you have a choice...

You can get the $ in CPP from your credits in Canada

You can get the $ in SOcial Security from your credits in the US

Or you can combine the credits from the two and get a bigger benefit in the US or in Canada through the treaty (depending on where your residence is)...

It's up to you..

Oh cool. Is it automatic or do I have to jump through 10 thousand hoops? Another question I can think of is: both our Canadian SIN's had an expiry date (next month actually) -- how does that factor in the equation?

There are hoops involved. But I'm not exactly sure how it works. You paid into the system an they're not giving those numbers to anyone else. The expiry coincides with your legal status to work in Canada... whether the SIN's expire or not is not of consequence..

zyggy, you're the man. I just hope I remember all this stuff when i retire!!!