Hi there,
I worked at a Canadian University with a hybrid pension plan where you received the greater of DB or DC for pension. My DB amount is low ($3500 a year), but my DC skyrocketed with strong interest rates year over year.
Now this old plan is being converted into the Ontario UPP plan, so I have the choice to accept a deferred pension from UPP (of roughly the same amount) or transfer the lump sum (without limits of $80,000) to a LIRA.
I'm 46 years old and plan to work at my current university--which will not let me merge this old pension into the current one... so the 4.92 years of service from the old school just remain in the deferred one--until 68 or so. It seems to me that since my years of service at the old job will never go up because I'll never work there again I should think about moving everything to a LIRA. Even with a 5% return and management fees of 0.45% with this investment, I'll walk away with over $225,000 upon retirement. I can also move half (I'm in Ontario) to my RRSP at 55. LIRAs have max and min withdrawals, but things will still be higher than what the DB deferred option offers me.
Any thoughts? I'm not sure what to do. I'd appreciate advice and can respond with more details if anyone has thoughts.
Thanks!