Collecting Your SPP Pension
To start collecting pension payments, between the age of 55 and 71, there are a few options you can consider. All the decisions that come along with the big one – retirement – can make this an overwhelming time.
If you’re an existing SPP member, please visit Member Services.
We’ll help you explore your options and provide education to get you started.
WHEN IT COMES TO COLLECTING YOUR PENSION,
YOU HAVE MULTIPLE OPTIONS:
- SPP ANNUITIES
- VARIABLE BENEFIT
- TRANSFER OUT
- COMBINATION OPTION
SPP ANNUITY: INCOME FOR LIFE
Annuities offer an income certainty that many people prefer—without the potential risk that comes with other options. You receive your pension as a monthly payment for your lifetime. The monthly pension amount is determined by a number of factors, but the amount will never go down.
VARIABLE BENEFIT: FLEXIBILITY
Variable benefit, available to all SPP members no matter which province you live in, offers the ability for you to direct your investment choice and ability to control how much retirement income your draw each year. This product is similar to a prescribed RRIF and allows you to remain actively invested in SPP’s funds.
TRANSFER OUT: MOVE TO ANOTHER FINANCIAL INSTITUTION
You may transfer part or all of your pension to another financial institution in the form of a Prescribed Registered Retirement Income Fund (PRRIF), Locked-in Retirement account (LIRA), or Life Annuity. These options are best discussed with the financial institution you plan to invest with.
COMBINATION OPTION: USE A MIX OF ANNUITY AND TRANSFER
Use a portion of your balance to purchase an SPP annuity, and transfer the remaining funds to a LIRA or PRRIF to ensure a guaranteed monthly payment for your lifetime while maintaining the flexibility to manage your investment and income.
Frequently Asked Questions
Can I get my money out in a lump sum?
After the age of 55, if you have a pension benefit of $28.54 or less per month, you may choose to take your money out in cash less a 10% withholding tax (sent to Canada Revenue Agency) or transfer your account into an RRSP.
Will my monthly pension ever change?
No. Every month we set the earnings and annuity rates according to current markets. The month you retire determines your monthly benefit for the rest of your life.
Will my SPP annuity income qualify for the Pension Income Tax Credit?
Yes, your SPP annuity payment qualifies for the Pension Income Tax Credit.
View all questions