Ready, Set, Retire!
The CLAC Pension Plan is pleased to announce that it is launching a new feature for members—the retirement income account.
Plan members who are age 55 or older now have the option to start receiving a regular retirement income directly from the CLAC Pension Plan by transferring their funds into a retirement income account (RIA) in their name. The RIA allows members to receive a regular retirement income for life.
Members have flexibility regarding the frequency of their payments and how much money they would like to receive, within minimums and maximums prescribed within the Income Tax Act. These limits ensure the money will last long enough to support you in your retirement years.
Member Eligibility
• Age 55 or older, and
• CLAC Pension Plan member who is no longer actively contributing
Flexible Payment Options
• Choose between monthly, quarterly, semiannual, or annual payments.
• Payments will be issued by direct deposit or by cheque, if requested.
• Payment amounts and frequency can be changed at any time.
Manage Your Retirement
• Plan members continue to be eligible for the investment glidepath, which makes the investment mix of your account more conservative as you age and helps to protect your funds from market volatility.
• You will continue to receive annual statements and tax slips from the plan.
• You can access your retirement account online through myCLAC and manage your payment options by contacting the CLAC Retirement Team.
• Similar to the CLAC Pension Plan, funds in your RIA are payable to your spouse/common-law partner or named beneficiary(ies)/estate when you pass away.
Opening a CLAC Pension Plan RIA is easy and now included as one of the standard portability options.
Not Ready for Retirement Payments Just Yet?
If you are not ready for retirement payments, but like the idea of the RIA, leave your funds in the plan!* You can transfer to the RIA whenever you are ready to start receiving a retirement income.
* Note that in the year you turn 71, any funds remaining in the CLAC Pension Plan must be converted to an income stream whether by transferring them into an RIA within the plan or by transferring your funds to a life income fund (LIF) at a financial institution.
Advantages of a Retirement Income Account (RIA)
• Professionally managed investment funds
• Low investment management fees—considerably lower than the fees charged by the average Canadian mutual fund
• Ability to consolidate and transfer-in any existing registered funds you may have when you open an RIA, including locked-in and nonlocked-in funds that you hold within the CLAC Group RSP or at a different financial institution
• Ability to transfer out RIA funds to another financial institution at any time, even once payments have started
• Continued access to all the financial resources available from iAcquaint
For more information about RIAs, or to receive a retirement income projections package, contact the CLAC Retirement Team at 1-800-210-0200 (8 a.m. to 8 p.m. ET) or retire@clac.ca