A pension provision whereby employees who change jobs can transfer the lump sum value of the pension they have earned to a locked-in RRSP or their new employer's pension plan is called what?

Question

Quizplus · Accepted Answer

The description given in the question matches the concept of portability, which allows employees to transfer their pension value to another pension plan or a locked-in RRSP when they change jobs. Therefore, option E is the correct answer. The other choices are unrelated or incorrect. Non-funding implies a pension plan that is not funded or not being contributed to, which is not relevant here. Vesting refers to the point when an employee becomes entitled to their pension benefits after meeting certain conditions, but it is not the same as portability. A non-locked-in provision does not restrict access to pension benefits, but this is also not the same as portability. Finally, while flexible pensions do exist, this is too vague a term to be sure it describes the concept mentioned in the question.

A Pension Provision Whereby Employees Who Change Jobs Can Transfer