Loss of Pension Benefit Upon Transfer to the Supplementary Reserve

Topic

Loss of Pension Benefit Upon Transfer to the Supplementary Reserve

Case number

• 2014-031 (F&R Date: 2014–08–22)

Description

Primary Reserve members electing to transfer to the Supp Res upon retirement may lose up to 12 months of pension benefits if they are unaware of the policy. Therefore, the Release Form should be revised as soon as possible in order to further reduce the likelihood of confusion and error.

Recommendation

The Committee recommended changes to the Release Form as follows:

• Clauses 16 and 19 should either be consecutively numbered or linked together in the same clause by the word “however”, so that it is clear that choosing to transfer to a sub-component includes choosing not to receive one’s pension benefits for 12 months.
• Because this clause is so important, it should be located at the beginning of the Release Form rather than at the end. Furthermore, it should be in bold font to capture the reader’s attention.

Final Authority Decision

Pending