Is the commuted value made up of both employee and employer contributions?
Yes. Plan rules state a member’s contributions can make up only half of the commuted value, with the employer’s contributions providing the other half. If the amount of member’s contributions in your account exceeds half the commuted value, you will be paid the difference. We call this “excess contributions”. The payment of excess contributions won’t be transferred to your LIRA. You can be paid by cheque, less withholding tax, or transfer the payment tax-free to your RRSP.
Related Questions
- What Are the Dangers of Accepting Accumulated Contributions (Employee and/or Employer or Otherwise) As the Present Value of a Defined Benefit Plan?
- Can an employee be eligible for other coverage from an employer and still be eligible to make or receive contributions to an HSA?
- Is the commuted value made up of both employee and employer contributions?
