Saskatchewan Pension Plan (SPP) lump-sum payments

The following SPP lump-sum payments can be transferred directly to your RRSP, your RRIF, or to buy yourself an eligible annuity:

• payments that you were entitled from the SPP as a member;
  

• payments that you were entitled as the current or former spouse or common-law partner of a member on the breakdown of your relationship (see Note below); or
  

• payments that you were entitled to as the current or former spouse or common-law partner of a member due to their death.

Note
Lump-sum payments from an SPP that you were entitled to under a court order or written agreement relating to a division of property between you and your current or former spouse or common-law partner in settlement of rights arising from the breakdown of your relationship may be transferred directly to an RRSP or to a RRIF.

You and your spouse or common-law partner had to be living separate and apart at the time of the transfer because of the breakdown of your relationship.

These lump-sum payments may also be used to purchase an annuity.

Amounts cannot be transferred to an RRSP if you were over 71 (under proposed legislation) at the end of the tax year.

Completing your tax return

If you transferred the amount directly, do not claim a deduction for the amount directly transferred and do not report the income on your return.

However, if you received the payment in cash or by cheque before making the transfer, the transfer is not tax free. Report the amount on line 130 of your return in the tax year the payment is received.