Location: Retirement Process
After a retirement application has been received and uploaded to the database, a Retirement Calculation is performed and saved as 'Pending'. Then an option letter is generated and sent to the member. Upon receipt of the returned option form, Final Processing is performed to set Payment, Tax, and Deduction Instructions and change the Status to 'Process'. Lastly, the Disbursements/Payroll batch is run to disburse the benefit.
The following procedure describes the calculation and final processing stages of the retirement process.
Use the following steps as a guide to retire a member from a DC plan.
Ensure that the correct plan is selected and from the Retirement process, click to select the Retirement Calculation event. The system displays the Calculation wizard with the Calculation Type 'Retirement' selected.
If necessary, use the Calendar to change the defaults for Date of Retirement and Payment Date and then click Next to continue. In this case, the system displays a Custom Parameters page.
Enter optional data, if appropriate, and then click Next to display a Summary.
If the Summary is correct, click Next.
The system displays the Calculation Results worksheet for the selected member. Calculation tabs include Options,General, Service, Earnings, Funds, and Summary.
To save the calculation, click Finish. The system saves the calculation as Pending and displays the Calculation History browser from which you can open and review the calculation.
From the Retirement process, click to select the Final Processing event. The system displays the Disbursement options Summary.
In the Cash Payment section adjacent to Payment to Member, click the Modify button. Here, you can modify the Payout Instructions (Payment Type and/or Disbursement Fee). Change the Payment Type to Transfer to RRIF - T2033, and set the Disbursement Fee to $0.00.
Click Next to return to the Summary screen.
In the Cash Payment section adjacent to Tax Instructions, click the Modify button to modify Lumpsum Tax Instructions. In this case, with the Payment Type set to Transfer to RRIF, there is no tax withheld.
Click Next to return to the Summary screen.
In the Cash Payment section adjacent to Payment, click the Modify button to modify the Payment Instructions. Here you can modify the Payment Method. If the payment method chosen is Cheque, ensure that the Payee and Address is populated. If the payment method chosen is Direct Transfer (via an electronic file), insert the banking information (Financial Institution No., Account No. and Account Type. In this case, Internal Transfer is used to direct the money to a RRIF plan.
Change the Payment Method to Internal Transfer.
Ensure the Issue Method is Not to be Issued.
Under To Plan, elect the RRIF Plan from the drop-down list.
Click Next to return to the Summary screen.
If you are satisfied that the Summary is correct, click Finish.
The next step in the process is to run the Disbursements batch.
After the data is posted, the system automatically enrolls the member in the RRIF plan and deposits the cash benefit from the DC plan as an External Transfer In.
For more information, see DC Admin Process (Online).
Build 1123
