LAPP has transfer agreements with a number of other public-sector pension plans in Canada. This means we may be able to transfer the service you have earned in LAPP directly to your new employer's pension plan so you can buy more pensionable service there.
Every pension plan has its own pension-benefit formula, and your new plan will calculate the cost of buying your LAPP service based on this.
If this is something you might wish to do, contact LAPP's Member Services Centre through Secure Messages in Your Pension Profile, by phone at 1-877-649-LAPP (5277), or contact your new employer's Human Resources Payroll & Benefits area immediately to ask about the transfer process.
You will not be able to transfer your service out of LAPP if you are able to receive an unreduced pension. In other words, if you are:
Timelines vary between agreements. You should check on your eligibility to transfer as soon as possible so you don't miss a deadline.
Under the National Transfer Agreement
If you want to start the transfer, please fill in the form at Appendix A: Transfer Information Request and Authorization Form under the National Transfer Agreement
The National Transfer Agreement covers the following pension plans:
Under the Federal Transfer Agreement
There is currently no transfer agreement in place from LAPP into Federal Public Service. If you have any questions about the status of transfers, please contact us.
Will it Cost You Money to Transfer Service?
Possibly, but not necessarily.
Pension plans use different rules to figure out the relative worth of their members' contributions and benefits. The plan you are transferring into will calculate the cost of bringing the service you earned from LAPP, and then send you a package with those details before you decide whether or not you want to proceed.
All pension plans are "priced" differently. The benefit you earned in LAPP might not match the cost of buying the same amount of service in your new plan. If your LAPP benefit cost at least as much the new plan benefit, you will not have to pay anything else, and the full amount of service will be credited to your new plan.
On the other hand, if the cost of buying the new service is more than the benefit from LAPP, this is called a shortfall. You will receive a portion of the service credit you originally earned with us, but you will have the option of buying back the difference. Paying for this buyback means you could retire earlier with a larger pension than if you do not buy the service.
What if I Am Transferring Service to a Plan That is Not on the List?
If your new plan is not on the list, you may still be able to buy the service you earned with LAPP through a process called a buyback.