Sanjay (47) has been working for a federally regulated financial institution for over ten years, but...

 

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Sanjay (47) has been working for a federally regulated financial institution for over ten years, but now has decided to leave for another firm. Sanjay has accumulated a substantial account balance in his defined contribution pension plan that consists of his contributions, employer contributions, and investment growth. Sanjay has been a member of the plan long enough so that the contributions have vested. Sanjay also has a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA). When Sanjay asks you about his options for his pension plan now that he is leaving his employer, which of the following is a CORRECT response that you can provide Sanjay? Sanjay may cash out of the pension plan for the full vested amount. Sanjay may use the pension value to purchase an immediate annuity. Sanjay may leave the value of the pension in his former employer's plan. Sanjay may transfer the pension amount to his RRSP. Sanjay (47) has been working for a federally regulated financial institution for over ten years, but now has decided to leave for another firm. Sanjay has accumulated a substantial account balance in his defined contribution pension plan that consists of his contributions, employer contributions, and investment growth. Sanjay has been a member of the plan long enough so that the contributions have vested. Sanjay also has a Registered Retirement Savings Plan (RRSP) and a Tax-Free Savings Account (TFSA). When Sanjay asks you about his options for his pension plan now that he is leaving his employer, which of the following is a CORRECT response that you can provide Sanjay? Sanjay may cash out of the pension plan for the full vested amount. Sanjay may use the pension value to purchase an immediate annuity. Sanjay may leave the value of the pension in his former employer's plan. Sanjay may transfer the pension amount to his RRSP.

Answer rating: 100% (QA)

Correct answer is d From the given information its quite clear that Sanjay may transfer ... View the full answer