GM Pensions CV Option
Members at General Motors who are retiring continue to have questions about commuted value pension options. Jo-Ann Hannah, Unifor Pensions and Benefits Director has provided the following information, which I highly recommend you read prior to retirement and signing your papers.
Two Important Changes to Members Taking CV Option November 1st 2014
As of December 2014, members who take the CV on retirement and have a cash payment in excess of the maximum transfer value allowed under the income tax act, will be able to transfer the excess funds to an RRSP. The forms are attached. The member will be responsible for ensuring that they have RRSP room.
GM will no longer provide the CV option to members retiring after their 65th birthday. This is due to recent changes in the Pensions Benefits Act. Although the changes were not intended to affect the CV option, they do and the regulator has said “too bad.”