Reciprocal Transfer Agreements

The Saskatchewan Teachers’ Retirement Plan has reciprocal transfer agreements with other provincial teacher pension authorities and other registered retirement plans in Saskatchewan. A reciprocal transfer agreement is a negotiated agreement made between two or more registered pension plans.

Members may transfer pension service/benefits from one registered plan to another according to the terms and conditions specified in the agreement. Depending on the particular agreement, the transfers are based on pension values.

Transfer Deficiency Holdback

An estimated actuarial valuation as at April 1, 2020 indicates the Saskatchewan Teachers’ Retirement Plan has a solvency ratio of 71.4 percent. In accordance with The Pension Benefits Act, 1992, Saskatchewan, and Section 28 of its regulations, if a valuation reveals a solvency ratio of less than 100 percent, a portion of the benefit payable upon termination from the Plan must be held back. This is called a transfer deficiency. The amount of the transfer deficiency held back will be 28.6 percent (100 percent – 71.4 percent) of the payment calculated at the final payout date.

Although the transfer deficiency holdback does not apply to reciprocal transfers to other provincial teachers’ pension plans, this requirement does apply to the other reciprocal transfer agreements in which the STRP participates.

The amount held back will be paid out, including interest, at the end of the five-year period following the date of the termination payment, or sooner, if the Plan becomes fully solvent before then.