The process of transferring a pension is slightly different from other registered account transfers. For pension transfers, ModernAdvisor cannot initiate transfers from our end, instead it is the pension administrator who is primarily handling the transfer.
The pension administrator typically provides different options available to the client and the forms that should be completed based on the option selected. These forms can vary based on the employer and legislation. If one of the requirements is for the receiving institution to sign a form such as a locked in agreement, you can send it to us to have it signed. We would then send it back for you to include with the documents that are sent to the pension administrator.
Legislation:
The pension plans governing legislation determines what options the employee has when they leave their employer. The legislation depends on where the employee worked and earned the benefits and is not always where they currently reside.
Pensions can typically be transferred to an RRSP, LIRA, LRSP, RRIF, LIF, a new RPP, PRPP or SPP. We need to know the right legislation to open the right account.
Locked-in RRSP (LRSP's) and Locked-In Retirement Accounts (LIRA) have basically the same attributes and the terms are often used interchangeably. Provincially legislated plans tend to use LIRA while Federally legislated plans use LRSP.
Forms and Requirements
The requirements to complete the transfer vary depending on the legislation, age of the employee and the employer. They usually consist of company or pension administrator specific forms to be signed, spousal declarations or CRA tax forms
Not all pension administrators would require a T2151 to be filled out but if it is required, the client and/or advisor have to fill this out. Unlike a Locked In Agreement, our custodians do not complete or sign the T2151 before it is sent back to the pension administrator. When the account is opened with ModernAdvisor, you can complete Part D by ticking the first option 'Transfer the RPP to my registered retirement savings plan' and entering the LIRA account number in the space provided.
The receiving financial institution name and address for any forms is based on the account number. For the 10 digit account number it is CI Investment Services, for the 8 character account number it is Credential.
- CI Investment Services Inc, 15 York Street, 7th Floor, Toronto Ontario, M5J 0A3. 1-888-365-0075.
or:
-Credential Qtrade Securities 700-1111 West Georgia Street, Vancouver, BC, V6E 4T6, 1-855-714-3900.
Step by Step Process
Open the right Account Type at ModernAdvisor through the Dashboard.
When adding a new LIRA account to an existing client, enter the jurisdiction on the drop down menu. If you are entering a transfer-in to a LIRA that is already opened, please let support@modernadvisor.ca know the jurisdiction.
An additional form is sent to the client to sign, which is the Locked In Addendum based on their legislation.
Review the package from the pension administrator to see what the client must provide to them to complete the transfer.
If there is a Locked In Agreement that is requested to be signed, please email us and we will request our custodians, Credential Securities or CI Investment Services, to sign and we will return to the advisor.
Send a complete package to the pension administrator. If everything is in order they would send the funds or communicate directly with the client for anything that is outstanding.