GM Employees

We Can Help

For more information, please contact Jordan McCormack to schedule a no-fee consultation.

Email: jmccormack@campbellwealth.ca
Cell: 289-697-5174

Jordan will review your specific situation and present your retirement options in greater detail.

GM Employees - Understanding your retirement options

Are you a current GM employee or soon to be GM retiree?

Keep your pension with GM

Advantages

  • Provides Income for life with no market risk
  • Income payments pre-determined for life.
  • Pension income splitting

Disadvantages

  • Continued income depends on financial health of the company’s Defined Benefit Pension Fund.
  • No protection from inflation
  • Once DB plan income starts, you can’t exchange your expected income stream for a lump sum cash payment.
  • Limited coverage in case of plan insolvency

 

Take the lump sum payout of your pension’s commuted value

Advantages

  • More control and flexibility with your money
  • Potential to leave for your estate

Disadvantages

  • Returns are subject to market fluctuations
  • Insufficient RRSP room can generate large tax liabilities upon commuting.
  • No LIF/RRIF income splitting until age 65

 

Transfer your pension to a “Copycat” annuity from a Canadian Insurance Company

Advantages

  • Provides Income for life with no market risk
  • Income payments pre-determined for life.
  • Backed by Assuris in case of Insurance company insolvency – Covers monthly annuity income payments of $2000/month or 85% of your benefit –whichever is higher.
  • Annuity income splitting
  • Potential for surplus funds to be directed back to pension holder

Disadvantages

  • No protection from inflation
  • Once annuity income starts, you can’t exchange your expected income stream for a lump sum cash payment.