As we announced in August, participants in a registered pension plan (RPP)1, VRSP2, RRSP or DPSP who will be turning 71 before the end of 2018 were sent a benefits statement in September encouraging them to convert their accumulation plan into a retirement income vehicle, such as a registered retirement income fund (RRIF), a life income fund (LIF) or an annuity.
Certain participants have not yet contacted us to let us know how they wish to proceed with their retirement savings. Please note that these participants must convert their plan by December 31, 2018, at the latest.
If Desjardins Insurance does not receive any instructions from these participants, we will need to transfer any non locked-in amounts to a RRIF, and any locked-in amounts to a LIF. If the participant’s balance is less than 20% of the maximum pensionable earnings (MPE), which is $11,180 in 2018, the amount will be reimbursed in a lump-sum payment and will therefore taxable for the 2018 fiscal year.
Please advise all concerned participants.
Participants can call our Customer Contact Centre at 1-800-968-3587 This link will launch your default phone software. if they require assistance.