Cash withdrawals are permitted from non locked-in funds. To determine whether you have non locked-in pension funds, refer to your last statement of account or your termination or retirement package, or sign in to your account at mysunlife.ca/ubcfpp, and then select my financial centre > Accounts > Balances > Details.
To make a cash withdrawal, contact the Sun Life Client Care Centre at 1-844-822-3131 (1-844-UBC-3131) and select option 2. No forms are required and no administration or transaction fees are charged for withdrawals.
Cash withdrawals are considered taxable income in the year that they are withdrawn. Tax will be deducted on any cash payment and will be withheld at source.
For Canadian residents, the withholding tax rate is between 10% and 30%. In Quebec, the rate is between 5% and 15% plus provincial withholding tax.
|If you withdraw:||Withholding tax rate (except Quebec)||Withholding tax rate in Quebec|
|Up to $5,000||10%||5%|
|Between $5,001 and $15,000||20%||10%|
|More than $15,000||30%||15%|
If you are not residing in Canada at the time of the benefit payment(s), tax withheld is based on your country of residence, at a fixed rate of 25% or lower if there is a tax treaty.
The above rates are set by the Canada Revenue Agency. These rates do not represent the actual tax that may be owed by an individual plan member. Taxes owing is determined by the plan member’s personal tax rate when filing his or her tax return for the year in which the benefit payment(s) is received.