If you move outside of Canada and/or are considered a non-resident by the Canada Revenue Agency (CRA), your pension benefit payments or transfer out requests may require special attention.
- Determine Your Residency Status
- Leaving Your Funds Invested in the Plan
- Withdrawing Cash
- Transfer My Funds to Other Registered Plans
- Canadian Government Income Security Programs
Determine Your Residency Status
It is important that you know your residency status and the income tax rules that apply to you while you are outside Canada. Review Taxation for Canadians travelling, living or working outside Canada on the Government of Canada website to determine your residency status and implications.
Leaving Your Funds Invested in the Plan
If you elect to leave your funds in the Plan, you will continue to receive your quarterly Statement of Account and pension correspondence by mail to the address on record. Please ensure that your mailing address and contact information is kept up to date. No further action is required until you request a pension benefit payment(s).
Non locked-in funds can be withdrawn in cash. The amount of tax withheld will be based on Non-Resident tax rates if, in the year of withdrawal, you are a non-resident of Canada for more than 183 days.
Locked-in funds may be unlocked if you satisfy the CRA’s requirements for being a non-resident of Canada. You can withdraw cash from your locked-in funds at any age if you have resided outside of Canada for at least 2 years.
Prior to your cash withdraw request:
- Complete a Determination of Residency Status (NR73) Form and file it with CRA.
- Once your application has been evaluated, you will receive a letter from them confirming the effective date of your non-residency.
- Send a copy of the letter to Sun Life Financial at the address below and upon receipt of the letter, Sun Life Financial will be able to accept your cash withdrawal instructions:
Sun Life Financial
Group Retirement Services
PO Box 11001 Stn CV
The withholding tax rate is 15% or 25%, depending on your country of residence and it will be deducted at source from your gross payment amount.
Cash payments will be paid out in Canadian currency unless otherwise specified.
Transfer My Funds to Other Registered Plans
You may transfer your funds to a registered plan(s) with a financial institution or employer in Canada. There are no reciprocal transfer provisions that permit tax-sheltered transfers between registered plans to other countries.
If you wish to transfer your funds to a registered plan(s) in Canada, contact your financial institution. Refer to ”Transfer to Other Registered Plans” for additional information and required forms..
UBC FPP Retirement Income Options
If you will be or are receiving income from one or more of the UBC FPP Retirement Income Options and reside outside of Canada, you must completed a NR301 Declaration of eligibility for benefits (reduced tax) under a tax treaty for a non-resident person form with your retirement income application or when you cease to be a resident of Canada.
Canadian Government Income Security Programs
Canada also has agreements with a number of other countries that offer comparable pension programs. These agreements allow for the co-ordination of two countries’ social security programs and make the benefits portable between the countries. For example, most social security programs require contributions during a minimum number of years. Under these agreements, periods of residence in Canada or contributions to the CPP may be used to satisfy the eligibility conditions of the other country’s social security system. For more information, visit Lived or living outside Canada – Pension and benefits – Overview on the Government of Canada website.
Note: If you are a non-resident of Canada, get Form NRTA1, Authorization for Non-Resident Tax Exemption for more information on transfers.