August 24, 2020 – The Globe and Mail
COVID-19 layoffs have workers wondering: Should I take a lump sum now or a future pension later?
By: Doug Chandler and Bonnie-Jeanne MacDonald
Defined benefit pension plan members facing pandemic-related permanent layoffs will have to make an important financial decision: take the lump sum now or the future pension later. Canadian pension plans must give terminating employees who are not eligible to start drawing their pensions yet the option of portability. That means giving up their lifetime monthly retirement pension for a lump sum settlement, known as the commuted value.