Cessation of Membership within the R-10 period - Entitlement to a Deferred Pension

Document Properties

  • Type of Publication: Guidance
  • Category: Benefits
  • No: 2008-012

Subsection 2(1) of the Pension Benefits Standards Act, 1985 (PBSA) defines pensionable age as the earliest age at which a pension benefit is payable under the terms of the pension plan without the consent of the administrator and without reduction by reason of early retirement.

Section 17 of the PBSA provides that a vested plan member who terminates employment is entitled to a deferred pension benefit. The member may choose to commence their pension benefit at pensionable age (as defined by the terms of the plan) or may choose to commence an early retirement pension within 10 years before that pensionable age (the R-10 period).

If a member ceases employment within the R-10 period, the plan administrator must permit that member to defer their pension benefit until pensionable age and cannot force the member to take an immediate early retirement pension.

Replaces Article Published in PBSA Update, Issue No. 5 May 1992