Overview
When leaving employment with your employer, you have several options for your LINK pension plan funds. The available choices depend on your vesting status, age, and years of service with your employer. Understanding these options and their tax implications is crucial for making informed decisions about your retirement savings accumulated through the LINK Defined Contribution pension plan.
LINK provides a Defined Contribution (DC) Plan
Employee and employer contributions are invested in chosen funds, along with voluntary funds if the employee chooses to contribute funds above the employer match.
Account value depends on contributions and investment performance
Offer flexible withdrawal options upon termination
Election Packages and Documentation
LINK will provide you with an Election Package shortly after your employer notifies LINK that you are leaving their employ. The Election Package is a comprehensive set of documents that outlines all your available options for your pension funds, required forms, and important deadlines.
LINK Election Package Contents:
Termination Statement / Annual Statement - Current value of your LINK pension account
Election Form - Available options for your LINK pension funds and deadlines
Transfer Forms - For transferring LINK pension funds to other registered accounts
Withdrawal Information - Providing EFT information for personal accounts (if applicable)
Tax Information - Withholding tax implications for LINK pension withdrawals (if applicable)
Understanding Locked-In vs Non-Locked-In Funds
Your LINK pension account may contain two types of funds with different withdrawal rules:
Locked-In Funds:
Employer contributions and associated investment earnings
Government-regulated pension funds that must remain locked-in until retirement age
Can only be transferred to other registered retirement accounts (LIRA, new employer plan)
Cannot be withdrawn as cash except in very limited circumstances
Non-Locked-In Funds:
Your own voluntary contributions above any employer match
Additional voluntary contributions and their investment earnings
Can be withdrawn as cash or transferred to various registered accounts
Provide more flexibility in your withdrawal options
Withdrawal and Transfer Options
1. Leave Funds in the LINK Plan
Eligibility: Available for terminated employees
Process:
Notify LINK of your intention to leave funds in the plan
Update contact information within the LINK platform
Receive statements showing your LINK pension account balance
Timeline: No immediate action required
2. Transfer to New Employer's Plan
Eligibility: New employer must accept transfers and plans must be compatible
Process:
LINK provides transfer forms via email (included in Election Package)
Employee fills forms and returns to LINK
Funds transferred directly between LINK plan and new employer's plan
Timeline: 2-4 weeks typical processing time from receipt of documentation
3. Transfer to Financial Institution
Eligibility: Available for all LINK pension plan members
Process:
Choose appropriate registered account at financial institution based on fund type:
Locked-In Funds: Must transfer to Locked-In Retirement Account (LIRA)
Non-Locked-In Funds: Can transfer to LIRA or RRSP
Open chosen account type with financial institution of your choice
Complete pension transfer form provided by LINK (included in Election Package)
Submit completed forms to LINK
Funds transferred to your designated account
Timeline: 2-4 weeks processing time from LINK plan
Note: Non-locked-in voluntary funds provide more flexibility and can also be withdrawn as cash (see Option 4 below).
4. Cash Withdrawal
Eligibility: Available only for non-locked-in funds
Process:
Complete withdrawal form provided by LINK (included in Election Package)
Provide EFT information for your personal account
Submit completed forms to LINK
Funds transferred to your designated bank account
Timeline: 2-4 weeks processing time from receipt of documentation
Tax Implications:
Fully taxable as income in year of withdrawal
Your employer will issue T4A slip for tax reporting
Withholding tax will be deducted at source
Consider impact on your total annual income and tax bracket
Important Notes
This guide provides general information and may not apply to all situations
Pension legislation and regulations change frequently
Individual circumstances vary significantly
Professional advice is strongly recommended before making any decisions
Need Help?
If you require additional support, please reach out to us through one of the following options:
Email: help@link-plans.com
Chat: Use the chat widget in the bottom corner of your screen within the LINK platform.
Phone: +1 (844) 707-3700
Support Hours:
Monday to Friday, 9:00 AM - 4:30 PM Mountain Time (11:00 AM - 6:30 PM Eastern Time)
We strive to respond to all inquiries within 24 hours.