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This section describes what happens to your DB pension if you stop actively working for CBS before you retire.



If you become disabled

  • If you become eligible for benefits from the Long-Term Disability Plan, you stop making your contributions to the plan. Canadian Blood Services pays the contributions on your behalf until you return to work, terminate your employment, reach age 65, or die. These contributions are based on your pensionable earnings just before you became disabled.

If you go on sick leave

  • If you're on sick leave with pay, or are eligible for workers' compensation benefits, you and Canadian Blood Services continue contributing to the plan.

  • If you're on sick leave without pay, you may choose to continue contributing for the period of your leave. If you do, Canadian Blood Services contributes too.

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If you take a leave of absence

  • If you go on maternity, parental or adoption leave without pay, you can choose to contribute to the plan for the period of your statutory leave, plus one month. If you choose to contribute, Canadian Blood Services contributes too.

  • If you're on other forms of leave without pay, you may choose to continue contributing for up to one month. If you do, Canadian Blood Services contributes too. Your membership and contributions will resume automatically when you return to work.

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If you leave CBS

  • If you leave CBS before you retire, you receive benefits from the Defined Contribution (DC) plan; which benefit you receive depends on whether or not your benefits are vested.

  • Vesting refers to your right to receive CBS's contributions from the plan. See the Glossary for a full description of when vesting takes place.

Before your benefits are vested

  • If you leave CBS before your benefits are vested, you'll receive a refund of your required and optional contributions with the income they've earned while you've been in the plan. Instead of a cash refund, you can choose to have the money transferred to:

    • your personal RRSP, or other approved retirement savings arrangement,
    • your new employer's pension plan, if the plan accepts such transfers, or
    • an insurance company, to purchase a life annuity that will begin no later than December 31st of the year you reach age 71.

After your benefits are vested

  • If you leave CBS after your benefits are vested, you'll receive the value of your full retirement account, including your required and optional contributions, and those that CBS has made on your behalf, along with the income they've earned while you've been in the plan.

  • You decide whether the money is:

    • left invested in the plan until your eventual retirement,
    • transferred to a locked-in RRSP or other approved retirement savings arrangement,
    • transferred to your new employer's pension plan, if the plan accepts such transfers, or
    • used to purchase a life annuity from an insurance company, which will begin no later than December 31st of the year you reach age 71.
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If you die while working for CBS

Before your benefits are vested

  • Depending on the province where you worked, if you die before your pension benefits are vested, your surviving spouse or your designated beneficiary receives a refund of your contributions with the investment income they've earned while you've been in the plan.

After your benefits are vested

  • Your eligible surviving spouse receives the value of your full retirement account (including your required and optional contributions, and those that CBS has made on your behalf, along with the income they've earned while you've been in the plan), and may:

    • transfer the money to another registered pension plan (if the plan accepts such transfers),
    • transfer the money to another registered retirement arrangement,
    • use the money to purchase an immediate or deferred annuity, or
    • receive a lump-sum cash payment (this option is not available in some provinces).


  • If you have no surviving spouse (or if you and your spouse have completed a form waiving the automatic spousal benefit), your designated beneficiary will receive the lump-sum cash payment less income tax.

  • Morneau Shepell will provide your survivors with details.

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If you die during retirement

  • If you die during retirement, the benefits to be paid depend on the option you selected (annuity, transfer to personal RRSP, etc.) before you retired.


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