Pension Commutation and T2033's

Every week I have the opportunity to help advisors with pension commutation cases. A common need is an explanation for the client about how the money is going to flow after it leaves the pension plan administrator. With that in mind, I put together this simple one page flow chart of how the typical pension transfer is broken out. Often, I just write in longhand the amounts next to the boxes and the client gets the picture. If you ask about the client’s and client spouse’s RRSP room and TFSA room, you can usually divide the commuted value in the most tax efficient way. Let me know what you think and I’d be glad to modify it for your personal use. Commutation Flow Chart Secondly, we often encounter significant delays with RRSP transfers. The relinquishing institution always seems to find a reason to delay the transfer. Here’s a letter you can attach to the transfer form that may expedite the transfer, no promises, but it may help. I look forward to all of your comments. Remember, wealth cases count for Two by Tuesday! Take care, Scott Edgington Director of Wealth Qualified Financial Services 416.786.4140 ps. Don't forget to sign up for our PD Day on September 14th!