# Quebec offer to admister a pension after bankrupty



## Eric (Oct 20, 2009)

*Quebec offer to admister a pension after bankruptcy*

I am expecting to receive in the near future the commuted value of my Nortel pension, reduced by 31%. The Quebec government is offering to manage the pension for 5 years to help the pensioners. I wonder if I should accept the offer. Here is an extract of the proposal:
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"...A pensioner whose pension is reduced will also have the option of transferring the commuted value of the pension to a life income fund (LIF) or requesting that the pension be administered by the Régie des rentes du Québec.

While acting as a prudent manager, the Régie will try to improve benefits. It can amend the plan to increase amounts paid to the retirees and beneficiaries whose assets are under its administration, particularly if surplus assets are produced.

If the assets under the Régie’s administration become insufficient to pay the reduced pensions that follow a plan’s termination or the withdrawal of an employer, or to pay the administration costs, the shortfall will be paid into the pension fund out of Québec’s Consolidated Revenue Fund..."
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I have looked into commercial annuities briefly and I came to the conclusion that they use a much lower rate than the one that will be used to calculate my CV. So a commercial annuity is out. I think the "Regie des rentes" will mirror my present (reduced) pension. I am not sure of that. Does anyone know?

I trust my ability to manage a LIF more than I trust the "Régie des rentes". However, the guarantee they are offering in case of a market crash is of value.

I am not sure what will happen at the end of the 5 years. Will I be able to transfer the CV to a LIF or would I be forced to buy a commercial annuity?

I would appreciate opinions or additional information.


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## sarahcolin1 (Dec 17, 2009)

*Reply:*

Thank you so much for sharing this information. I am sure it will help me in the future.

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