Phased retirement and pension plans

Your pension plan is an asset for keeping expertise within your company.

You can offer your retirement-age workers or your retirees certain phased retirement measures, which let them draw benefits under a pension plan while continuing to work on a full-time or part-time basis. Depending on the situation, they can also accumulate new benefits under the plan and thereby increase their future retirement income. The measures and conditions vary according to plan type and your specific agreement with the worker.

Contact the plan administrator for information on plan conditions and how to amend them, if necessary.

• If you offer a defined benefit plan
• If you offer a defined contribution plan
• If you offer a simplified pension plan (SIPP)

If you offer a defined benefit plan

You can give eligible workers the option to:

• reduce their work hours and receive a refund or a cash payment under their defined benifit plan
• receive a phased retirement benefit under their defined benifit plan while working full or part-time.

If you offer a defined contribution plan

You can also give eligible workers the option to:

• reduce their work hours and receive a refund or a cash payment under their defined contribution plan
• receive a phased retirement benefit under their defined contribution plan while working full or part-time.

If you offer a simplified pension plan (SIPP)

Your employees age 55 or over can draw a retirement income by transferring part or all of the sums in their locked-in account. You do not have to reach an agreement with them for that purpose, and they do not have to reduce their work hours.