Retirement

Redemption conditions

Retirement: 7 things you should know

1. Eligibility

You are eligible if:

  • You are between 45* and 64 years of age;
  • You have contributed to the Québec Pension Plan for at least one year;
  • You are already retired;
  • You have owned your shares for at least 730 days.

*You can redeem your Fonds shares as of age 45 provided you collect retirement benefits under an employer’s pension plan.

2. When to submit your request

You can request a redemption as soon as you are entitled to pension benefits even if you are still working. However, you must retire within three months after we receive your request.

3. Shares eligible for redemption

The Fonds can redeem all shares held for at least 730 days.

4. Share redemption price

Share price is usually published around January 5 and July 5. Shares redeemed after these dates are redeemed at the share price then in effect.

However, there is a transition period between the end of each six-month period and the date the share price is published:

• between November 30 and January 5;

and

• between May 31 and July 5.

Please refer to the simplified prospectus or contact Shareholder Services to find out the options available to you if your retirement redemption request is submitted during one of these transition periods and you retire during a transition period or within three months after the end of a transition period.

5. Taxes
When you cash in all or part of an RRSP, the amount is taxable and must be included in your income tax return in the year you withdraw the funds. Income tax on RRSP shares is calculated based on the rates in effect at the time of redemption.

However, no tax is withheld if you transfer your Fonds RRSP to another plan such as another RRSP, an annuity or a Registered Retirement Income Fund (RRIF).

Tax withheld on amounts withdrawn from an RRSP*

 Amount cashed in 
 (gross) 

Tax withheld

Québec

Federal

Total

 $5,000 or less

16 %

5 %

21 %

 $5,000.01 to $15,000

16 %

10 %

26 %

 $15,000.01 $ or more

16 %

15 %

31 % 

*These figures are subject to change.

6. Request processing time

If you provide all the required documents, your request will be processed within 30 days from the time the Fonds receives your request.

7. Share purchase after a redemption

While you can purchase Fonds shares again after a redemption for retirement, you will not be entitled to any tax credit.

Securifonds

A NEW FINANCIAL PRODUCT: SÉCURIFONDS™

Are you planning for retirement or have you already retired? You can now roll over your RRSP to a RRIF with SÉCURIFONDS, a new financial product created just for Fonds shareholders.

To learn more, click here

 

Contact us

Did you know?

According to Statistics Canada, in 2008, Canadians had set aside $1.8 billion for retirement through different plans.
Fonds de solidarité FTQ © 2011