Can I transfer a severance package or retiring allowance into the CSS pension Plan?
If you receive a severance package or retiring allowance from your employer member of the Plan, it can be tax sheltered (up to the Canada Revenue Agency – CRA retiring allowance limits) and transferred to the CSS Pension Plan. Your first step in this process is to set up an RRSP with a financial institution. You and your employer must then complete a TD2 form to transfer your severance package/retiring allowance to this RRSP. Then using a T2033 be provided by the CSS Pension Plan, this RRSP can then be transferred to the CSS Pension Plan (NOTE: a photocopy of the TD2 must accompany the T2033 to the Pension Plan). The maximum amount of a severance package or retiring allowance that an employee member can tax shelter in accordance with CRA limits: is $2,000 for each year or part-year, up to and including 1995, when the employee was employed by the employer member (and other employer members if service has been continuous); plus an additional $1,500 for each year or part-year before 1989
