Janice’s company has a portability option in the defined contribution pension plan. Janice quits to go work for a competitor. What will happen to her pension? A.Janice will receive future benefits based on the contributions made to the plan by her and her company on her behalf. B.Janice will lose the value of her retirement savings, since she quit.C.Janice can move the pension to her new employer or roll it over to a locked-in RRSP.D.Janice will only receive future benefits based on the contributions made to the plan by her.
Question
Janice’s company has a portability option in the defined contribution pension plan. Janice quits to go work for a competitor. What will happen to her pension? A.Janice will receive future benefits based on the contributions made to the plan by her and her company on her behalf. B.Janice will lose the value of her retirement savings, since she quit.C.Janice can move the pension to her new employer or roll it over to a locked-in RRSP.D.Janice will only receive future benefits based on the contributions made to the plan by her.
Solution
C. Janice can move the pension to her new employer or roll it over to a locked-in RRSP.
This is because the portability option in a defined contribution pension plan allows an employee to transfer their pension to a new employer's plan or to a personal retirement savings plan, such as a locked-in RRSP, when they leave the company. The exact options available may depend on the specific rules of the pension plan and the regulations in the jurisdiction where the plan is registered.
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