Pension portability option restored for retirees

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The York University Pension Plan has a "portability" option (Section 7.05) that allows retiring members to elect to transfer the "commuted value" of their pension out of the plan as a lump sum as an alternative to receiving a retirement pension. Two years ago, the Employer began to prohibit such transfers for those over age 65, by citing 2012 changes to the Pension Benefits Act (PBA), which were interpreted to exclude those over age 65 from transferring the commuted value of their entitlement to another registered vehicle.

In the 2017 provincial budget, the Ontario government amended the PBA to make clear that the portability option is acceptable. We are pleased to let our members know that this option is once again available.

YUFA has an active grievance challenging the Employer's decision to revoke portability, which could still apply to members who may have preferred to take a lump sum transfer and were prevented from doing so in 2015 and 2016.

If this applies to you, please contact YUFA right away: email [email protected] or phone 416-736-5236.