# Pension



## Iamwhatiam (Jul 11, 2011)

I have a pension.
Recently I left my job.

I can move the pension into a special RRSP that I can't get access to until later in age.

Does anyone see any danger to moving this from where it is (HOOP/Hospital pension plan) into a locked in RRSP.

I was considering moving it to the Royal Bank.

Thoughts? Ideas? Suggestions?

Thanks


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## OhGreatGuru (May 24, 2009)

HOOPP is a defined benefit plan. It's rarely a good idea to give up a DB pension (in a reliable organization) in exchange for a self-directed locked-in RRSP.

The "danger" is that you are very unlikely to be able to generate as good a retiremnt income stream.


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## Iamwhatiam (Jul 11, 2011)

*Thanks*

Well right now I'm not with the company so why would I leave it with HOOP is it growing at a superior rate than it would to transfer it to a locked in RRSP.

To be honest I would rather draw on it ... in fact I would like to liquidate the whole thing but apparently I can't.

Why am I saving up money for later in my life so I can blow all the money I saved throughout my life on healthcare or a nursing home. Saving up to give it right back ...

Anyway with that said - what is the best thing in the RRSP family to put it onto in the RBC bank ... is there only one option?

Thanks guys.


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## Daniel A. (Mar 20, 2011)

I'm reluctant to respond given your negative outlook on your future.

Here goes even in a locked in RRSP I believe your limited on withdrawal rate based on a percentage of the total each year.

In the HOOP the money is much more secure, less risk.
At a time when many wish they had such a plan you seem more than willing to throw it away.

How many years were you in the plan ?


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## DanFo (Apr 9, 2011)

Not sure if your plan is modelled the same but in my plan if i were to leave the company early....(just got my pension statement friday)

I could leave my money in the plan and recieve an indexed adjusted pension once I reach 65 (can do it earlier but the rate is reduced) 

I could withdrawl the commuted value and deposit it in an RRSP..however i think the government only allows 50K to go into the RRSP and i can't touch this money until i am at least 55..the remaining value of the pension would be given to me as cash along with the nice tax bill associated with it.

I'd say if the commuted value is not overly larger then the RRSP transfer limit it may be worth transfering it if your pension isn't indexed to inflation.

If you believe your pension is secure where it is your probably better off leaving it there unless your in dire need of the money.


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## Iamwhatiam (Jul 11, 2011)

*Okay*

Well I've just seen people make it to the Golden age and there is nothing Golden about it. It looks very sad. 

It's just life so I figure best enjoy life while your body ... works ... just a fact of life. 

Anyway what I would do is go into RBC and say I want to open a what special pension RRSP? 

I think for sure I'm going to transfer it ... just trying to figure out the best steps required.

Thanks guys.


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## Square Root (Jan 30, 2010)

I'm sorry you are so down on your prospects. I think you might be making a big mistake taking your money out of the pension. Doesn't sound like you are very experienced in these matters so probably better to leave the money with professionals. Good luck, I hope things improve for you.


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## carverman (Nov 8, 2010)

Well, I certainly agree with his view on the "Golden age"...life can throw you many curves..as in my case...

but isn't there a limit on taking a tax sheltered lump sum and putting it into a personal rrsp (available rrsp contribution room?)

The remainder of this lump sum is added on to your income and taxed away at a much higher rate as soon as you file your taxes?
not counting the 
10 or 20% withholding tax on tax sheltered investments.


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## OptsyEagle (Nov 29, 2009)

Sounds like we have another that the taxpayer is going to get the pleasure of looking after in his later years. 

And people ask why the government forces a locking in mechanism on these plans!


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## Iamwhatiam (Jul 11, 2011)

*Hey ...*

I am sorry about your ignorance for saying that I wish you the best.


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## Iamwhatiam (Jul 11, 2011)

*...*

http://www.youtube.com/watch?v=ZPWH5TlbloU


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## Daniel A. (Mar 20, 2011)

A locked in RRSP is not treated the same as a regular RRSP.
In a regular RRSP you may take out what you want when you want this is not the case in a locked in RRSP.
Yes you can transfer to any financial institution you wish RBC included and have control of where the funds are invested that is up to you.

Remember though to check on the withdrawal rules from a locked in RRSP.


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## OptsyEagle (Nov 29, 2009)

Well if you don't plan on saving anything for your later years and I am assuming that you don't plan on offing yourself at 65, how is the taxpayer going to escape this cost?


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## OhGreatGuru (May 24, 2009)

Iamwhatiam said:


> ...
> To be honest I would rather draw on it ... in fact I would like to liquidate the whole thing but apparently I can't.
> 
> Why am I saving up money for later in my life so I can blow all the money I saved throughout my life on healthcare or a nursing home. Saving up to give it right back ...
> ....


That's the other risk with a locked in RRSP - that you will be tempted to unlock and spend as much as you are allowed, instead of saving for your retirement.


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## Bullseye (Apr 5, 2009)

As a HOOPP member, and quite familiar with the plan, you're making a huge mistake transferring out of it, assuming you have any significant amount in there. It is a great DB plan, you can start drawing at 55, and get payments every month for the rest of your life, no matter what the markets do. 

If you transfer it out, you still can't use it now, it's locked up. And then that money is at the mercy of the markets, you carry all the risk.


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## sags (May 15, 2010)

The HOOPP plan has a surplus, is very well managed, and is getting a good return on their investments. They also provide a small life insurance package, indexing, and spousal benefits.

It is highly improbable an individual investor could obtain a better return for their money.


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