Sign In

Terminating Your Contract

Resignation or Terminat​​ion

If you resign from your contract or your contract is terminated, your contributions stop and you must decide what to do with your benefit. Read the publication, Benefits at Termination, then complete the Employee Termination Notice​ and return it to ATRF.

Entitled to an Immediate Pension​​

If you are age 55 or older with sufficient pensionable service, you are entitled to receive an immediate pension. You may elect to:

  • receive your pension,
  • transfer your benefit to another pension plan with which ATRF has a reciprocal transfer agreement, or
  • if you plan to continue employment with another ATRF employer, leave your pension benefit in the Plan and apply for your pension at a later date.

Once you reach age 55 and are entitled to a pension from the Plan, you cannot withdraw your benefit from the Plan.

Entitled to a Deferred Pe​nsion

If you have enough pensionable service to be eligible for a pension, but you are not yet age 55, you may elect to:

  • transfer your entitlement to another pension plan with which ATRF has a reciprocal transfer agreement,
  • leave your pension benefit in the Plan and start your pension at age 55 or older, or
  • withdraw or transfer your pension benefit to a registered retirement savings plan (RRSP) or locked-in retirement account (LIRA).

Deferred pensions will receive cost-of-living adjustments from the later of:

  • the termination of the last teaching contract,
  • the last accrual of pensionable service with ATRF, or
  • the last substitute pensionable service purchased.

You are responsible for advising your designated beneficiary that they should contact ATRF in the event of your death.

To begin receiving your pension, you should contact ATRF four months before your 55th birthday.

Leaving Your Pension Benefit in the P​lan

If you leave your pension benefit in the Plan:

  • you may make a different choice at a later date, and
  • your contributions accumulate interest annually based on the average of five-year fixed-term deposit rates paid by the chartered banks in the preceding year.

You are responsible for advising your designated beneficiary that they should contact ATRF in the event of your death.

To begin receiving your pension, you should contact ATRF four months before your 55th birthday.

Withdrawing or Transferring Your Pensio​n Bene​​​​​​fit

If you are not eligible for an immediate pension when you resign or leave teaching, application can be made to withdraw your pension benefit from the Plan. The benefit is different for pensionable service before and after September 1, 1992.

The benefit payable for pensionable service before September 1, 1992 is equal to your contributions with interest, and:

  • may be paid to you in cash with income tax deducted, or
  • may be transferred directly to a registered retirement savings plan (RRSP), with no income tax deducted. This direct transfer will not affect your RRSP contribution room.

The benefit payable for pensionable service from September 1, 1992 depends on whether you have sufficient pensionable service to be eligible for a pension:

  • If you are not eligible to receive a pension, your benefit from the Plan is equal to your contributions with interest. This benefit may be paid to you directly with income tax deducted or transferred to an RRSP with no income tax deducted.
  • If you are eligible to receive a pension, the benefit is the greater of
    • your contributions with interest, or
    • the commuted value of your pension. This benefit must be transferred directly to a locked-in retirement account (LIRA). LIRAs are restricted RRSPs that require that funds in the LIRA be used to provide a lifetime pension on or after age 50 but before the end of the calendar year in which you reach age 71. All financial institutions offering LIRAs and life income funds (LIFs) to customers must be on the Superintendent’s List of Financial Institutions offering locked-in pension products in order to accept transfers or locked-in funds. A list of these financial institutions is available on the Alberta Treasury Board and Finance website or from ATRF.

To initiate a transfer to an RRSP or LIRA, you must complete a Canada Revenue Agency Form T2151E Record of Direct Transfer of a Single Amount. This form is available from ATRF, Canada Revenue Agency or your financial institution.

Payment will be made as soon as possible after you terminate employment with your ATRF employer and after the required documentation has been received from you and your last employer.

If benefits are paid to you directly, they are taxable in the year in which you receive them. ATRF will issue a T4A Supplementary Form with your cheque detailing the payment and the tax withheld. You may also receive a pension adjustment reversal (PAR) that may result in additional RRSP contribution room.

Transfer to Another Pension P​lan

If you become a member of another pension plan, you may be eligible to transfer pensionable service to that pension plan provided it has a reciprocal transfer agreement with ATRF. Refer to Changing Employment​ for more information.

Refer to the publication, Benefits at T​ermination, for more information.

© Copyright 2015, Alberta Teachers' Retirement Fund Board
Legal Information