Pension plan – RCRUL

The Supplemental Pension Plan of Laval University (SPPUL) is a defined contribution pension plan. A defined contribution plan is a plan in which the costs are known in advance, for all participants, but the value of the pension depends on the returns.

Voluntary membership means that participation is not compulsory. However, in order to benefit from the employer’s contribution, you must contribute. Without your contribution, the University pays nothing.

To access the RCRUL, you must meet ONE of the following two conditions, either in the current year or in the previous year:

Have worked 700 hours (e.g. 20 weeks at 35 hours per week)
OR
Earned $19,215 (e.g. 25 weeks at $40,000 per year)

When you join the plan, you start contributing 7.6% of your gross salary. For example, on a salary of $40,000 per year, that’s $3040 per year, or $116.92 per pay.

In addition, the University pays 8% of gross salary from the same time. For example, on a salary of $40,000 per year, that’s $3200 per year, or $123.08 per pay.

These amounts belong to you in their entirety, in addition to the interest generated, and are not taxable when paid. However, they are taxable when withdrawn from the plan.

To have the details of the amounts and to know the options you have, you must contact the Retirement Office before the end of your internship.

Generally speaking, there are 5 possible options:

• Transfer to a locked-in retirement account in a financial institution OR transfer to another pension plan.
• Deferred annuity: The money stays in the LIRA until you retire, at which time you can withdraw an annuity.
• Refund OR transfer to an RRSP: Only if the amount is less than $10,720.

If you have been out of Canada for 2 years or more, you can also withdraw the entire amount, even if it is more than $11,060.

If you are over 55, these 2 options are also available to you

• Immediate annuity
• Life Income Fund