A Major Asset About Your MTS Pension Plan How Does My Pension Plan Work? How Do I Become A Member Of The Plan? Who Contributes What? What Will I Get From The Plan? Can You Give Me An Example? When Can I Retire? How Is My Pension Paid? Does My Pension Offer Any Inflation Protection? What Happens If I Leave MTS Before I Retire? What If I Become Disabled? Are My Survivors Protected? What If I Need More Information?

You are in: The Plan : Publications : Employee Booklet : What Happens If I Leave MTS Before I Retire?   What Happens If I Leave MTS Before I Retire? There is no guarantee that you will spend the rest of your active work days with MTS. Not to worry. In most cases, the benefit you earn as a member of the MTS Pension Plan is yours to keep, regardless of whether you retire from the Company or not. Under the terms of the MTS Plan, you have a legal or "vested" right to your pension once you complete two full years of Continuous Service. If you leave MTS before you complete two full years of Continuous Service, you will receive a lump-sum refund of your Plan contributions, plus interest. You can take this money in cash, less withholding tax. Or you can continue to defer tax on this money by transferring it directly to a personal Registered Retirement Savings Plan (RRSP). The choice is yours. If you leave the Company after completing two full years of Continuous Service, you will have a full vested right to the benefit you have earned as a Plan member. At that time, you will have a number of options to consider. You may: use the value of your vested benefit to purchase an immediate or deferred annuity; transfer the value of your vested benefit to a Locked-in Retirement Account (LIRA) (formerly known as a Locked-in RRSP); transfer the value of your vested benefit to a Life Income Fund (LIF); or transfer the value of your vested benefit to your new employer’s pension plan, provided that this plan permits transfers (Note: plan-to-plan transfers remain locked-in under current legislation). You may also elect to leave your benefit in the Plan until you qualify for retirement. In this case, you would qualify for regular cost of living increases. (For a full discussion on regular adjustments, please see Does my pension offer any inflation protection?.) If you elect to receive your deferred pension prior to age 65, early retirement reductions may apply. (See When Can I Retire? for a full description of these early retirement factors.) A Quick Look At Your Options All vested benefits are "locked in" under current pension legislation. In other words, you can’t cash this money out; you must use it to provide a retirement income beginning sometime prior to your 70th birthday. Following is a quick description of your available options. Retirement Vehicle Description Annuity Provides you with a level of guaranteed income payable for your lifetime. LIRA (Locked-in Retirement Account) Formerly known as a Locked-in RRSP Similar to a personal RRSP, a LIRA gives you control over your investments. However, the LIRA cannot be cashed out; it must be used to provide ou with a retirement income sometime prior to age 70. You may use your LIRA to purchase an annuity or transfer it to a Life Income Fund. LIF (Life Income Fund) Provides you with an added degree of flexibility. The LI gives you complete control over the fund investments. It also lets you decide how much you will withdraw in a given year (subject to certain restrictions). You must, however, convert your LIF to annuity when you reach 80 years of age. We would strongly suggest that you confer with a financial advisor before making your decision. Copyright 2004. All rights reserved.