Saskatchewan Pension Plan (SPP) lump-sum payments

Important notice
For 2010 and later taxation years, SPP contributions are subject to the same rules as RRSP contributions. For more information, see Saskatchewan Pension Plan.

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 receive from the SPP as a member;
• payments that you receive as the current or former spouse or common-law partner of a member on the breakdown of your relationship; or
• payments that you receive as the current or former spouse or common-law partner of a member due to their death.

Lump-sum payments from an SPP that you receive 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 must 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 years old 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.