When a plan member terminates employment (including retirement) with an employer, they have a number of transfer options. They can require the plan administrator to pay an amount equal to the account balance (for defined contributions plans) or commuted value of the member’s benefits (for defined benefit plans) to:
- the pension fund of a new employer;
- to a prescribed retirement product;
- for the purchase for the member of a life annuity that starts on a date not earlier than the earliest date the member would have been entitled to receive payment of pension benefits under the plan; and
- to a financial institutions pension plan.
Members are required to advise the administrator of the option they have chosen in writing within ninety days from their date of termination. If a member does not deliver the written direction mentioned above, the administrator will place the value of their account balance or benefit in the most conservative investment option they offer.