Early Retirement Date

Equity that is not eligible for withdrawal from the Plan as cash. Locked-in equity includes:

• employee and employer required contributions (with investment earnings thereon) if the employee terminates employment after they become vested with the Plan; and
• any equity transferred to the Plan on a locked-in basis.

For the purposes of the Plan, marital status is defined as:

• Single: the Plan member does not have a married or common-law spouse (as described below). "Single" also includes Plan members who are legally divorced or widowed.
• Married: the Plan member has a spouse by legal marriage.
• Common-law: a Plan member who is not legally married and who is cohabiting with another individual as spouses for at least one year. "Common-law" also includes individuals of the same gender.

Equity that is eligible for withdrawal from the Plan as cash. Non-locked-in equity includes:

• employee required contributions (with investment earnings thereon) if the employee terminates employment before becoming vested.
• any additional voluntary contributions (with investment earnings thereon) made by the Plan member once the Plan member terminates employment with a participating employer.

A RRIF permitted under The Pension Benefits Act (Saskatchewan) as a retirement income option for Saskatchewan members of registered pension plans. Prescribed RRIFs operate the same as "ordinary" RRIFs (see below) except:

• if the Plan member has a spouse, the spouse's consent must be obtained before the prescribed RRIF can be established; and
• if the Plan member has a spouse, the spouse must be the beneficiary of the prescribed RRIF, unless the spouse waives the right.

See also RRIF

RRIFs are funds for individuals, established at financial institutions and registered under the Income Tax Act (Canada), that provide income in retirement. The equity of the RRIF is invested, based on the investment guidelines of the RRIF purchaser. At the same time, individuals are able to draw income from the RRIF.

Amounts withdrawn from RRIFs are taxable. A minimum amount must be withdrawn from a RRIF each year, beginning in the year after the RRIF is established. The maximum that may be withdrawn from a RRIF is the entire value of the RRIF. RRIFs provide flexibility in the amount of retirement income that may be received from year to year. RRIFs do not provide guaranteed lifetime retirement income. If withdrawals continue to exceed investment earnings, it is possible to "outlive" the RRIF.

A specified beneficiary relates to a Variable Benefit. If you have a spouse (married or common-law), your spouse is your specified beneficary. In the event of your death, your spouse as your specified beneficiary is entitled to receive the survivor benefits from your Variable Benefit account and may choose to:

• continue receiving periodic payments from the Variable Benefit account; or
• receive a lump sum, fully taxable payment of the entire balance remaining in the Variable Benefit account; or
• transfer all or part of the Variable Benefit account to a P-RRIF or LIRA with a financial institution.

For the purposes of the Plan, a spouse is defined as:

• a person who is married to a Plan member; or
• if the Plan member is not married, a person with whom the employee is cohabiting in a spousal relationship for at least one year.

Vesting refers to the point in time when a Plan member becomes unconditionally entitled to ownership of the employer's required contributions.

Vesting occurs at the earlier of:

• the completion of a period of employment established in a participating employer's adopting resolution (not to exceed 2 years of continuous service); or
• the completion of 2 years of employment with one or more participating employer(s); or
• the date of the Plan member's death; or
• the date the Plan member turns age 65.

The Variable Benefit is a pension income option available to Plan members within the Saskatchewan jurisdiction. You don't have to be currently living in Saskatchewan to be in the Saskatchewan jurisdiction. If you were employed in Saskatchewan when you made your last contribution to the Capital Pension Plan, you are eligible for a Variable Benefit when you retire, even if you no longer live in Saskatchewan.

The Variable Benefit operates much like a Prescribed RRIF that is available from many financial institutions. The exception is that your money remains with the Capital Pension Plan during retirement. Your investment earnings continue to accrue in you account on a tax-deferred basis.

At the same time, you receive regular retirement income from your Variable Benefit account. You have the flexibility to decide how much income you wish to receive, and to periodically adjust this amount to meet changing needs or cover unexpected expenses. All income or withdrawals from your Variable Benefit are fully taxable in the year they are received.

Life a P-RRIF, the Variable Benefit does not provide guaranteed lifetime income. Your payments and withdrawals must be monitored to ensure your money lasts the length of time you desire during retirement.