Pension plan comparisons

Question: My husband has three options now that he is no longer working for the Ontario Government:

1. Keep the funds in the OPSEU Pension Plan

2. Transfer to a locked-in RRSP

3. Transfer to his current employer (OMERS)

What would be your suggestion? He has to direct them as to his decision by the end of the month or the money will stay where it is. – B.B.


I cannot provide a specific answer to this type of question. However, as a general rule, a defined benefits pension plan is a better choice than a locked-in RRSP because the amount of the payment at retirement can be determined, at least in approximate terms. The payment from an RRSP will depend entirely on the performance of the invested money.

As to whether staying in OPSEU or moving the money to OMERS is the better choice, it would require a pension consultant to do a comparative analysis. There are companies that specialize in this field but, as a first step, your husband should sit down with a representative of the administrator of both plans and ask them to give him comparisons of what would happen in each case. – G.P.