Office of the Superintendent - Pension Commission

OSPC - FAQS - Overview of Manitoba Pension Laws

Transfer Deficiency

1. What is a transfer deficiency?
   
   A transfer deficiency occurs when you, as a pension plan member, are entitled to transfer the value of your pension benefits away from the company plan, but the plan you are a part of is not fully funded.
2. What happens if there is a transfer deficiency?
   
   When a transfer deficiency exists, an initial amount of your benefit will be transferred, based on the percentage of funding the plan has. The employer must contribute to the pension plan within five years the rest of the funds needed to provide the remainder of your benefit (or the transfer deficiency) and then must transfer the remainder of the benefit, plus interest to you.

   For example:

   The plan is 90 percent funded and your total benefit entitlement is:

   $100,000

   Initial benefit will be:

   $100,000 x 90% = $90,000

   Remaining benefit will be:

   $100,000 - $90,000 = $10,000 plus interest

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