OSAP vs Pension

[Real Beef]

I couldnt find anything regarding OSAP and pensions. There is a specific line for RRSPs within the OSAP award calculator but there isnt anything for Pension.

 

My pension is locked in and can not be accessed unless I apply for hardship circumstances which is kind of stupid because then you get taxed at 40%, while through the Life Long Learning program you can access your RRSP interest free for up to 20k (10k per year x 2 years) without much hassle.

 

So a pension and RRSP are two different beasts. I am hesitant to put my pension under the general 'assets' column because it can not be tapped easily without significant penalities and possible loss of employer contribution so I do not consider accessible really.

 

I have sent an email to my OSAP contact at NOSM but havent heard back yet. There will be a financial aid session on Tuesday which I will attend via webcast and can send in questions but thought I would throw it out there and see if anyone knows what the deal is.

 

Beef

[MCATwannabe]

I couldnt find anything regarding OSAP and pensions. There is a specific line for RRSPs within the OSAP award calculator but there isnt anything for Pension.

 

My pension is locked in and can not be accessed unless I apply for hardship circumstances which is kind of stupid because then you get taxed at 40%, while through the Life Long Learning program you can access your RRSP interest free for up to 20k (10k per year x 2 years) without much hassle.

 

So a pension and RRSP are two different beasts. I am hesitant to put my pension under the general 'assets' column because it can not be tapped easily without significant penalities and possible loss of employer contribution so I do not consider accessible really.

 

I have sent an email to my OSAP contact at NOSM but havent heard back yet. There will be a financial aid session on Tuesday which I will attend via webcast and can send in questions but thought I would throw it out there and see if anyone knows what the deal is.

 

Beef

 

I'm no expert at this, but if Pension is locked in, then why do you have to declare it in OSAP? I thought they only care about your account that are accessible to you that you can use for living. If you can't take out your pension funds normally, then why would they care about it? Again I am no expert at this. Better call school to confirm.

[Real Beef]

I'm no expert at this, but if Pension is locked in, then why do you have to declare it in OSAP? I thought they only care about your account that are accessible to you that you can use for living. If you can't take out your pension funds normally, then why would they care about it? Again I am no expert at this. Better call school to confirm.

 

Yeah I sent an email to the financial aid officer at NOSM re: this. I just figured OSAP may be picky because they consider things like boats and 4 wheelers assets which you can tap into .... i.e. sell to fund school so I feel that they would similarly expect you to claim 'hardship' circumstances and cash out your pension prematurely. Thanks for your input. I will find out the official word on Tuesday I guess because I still havent received an email from the financial dude ... he must be on vacation because he usually replies within 24 hours and its been about 72.

 

Ill report back on here so that future people with the same question can check it out.

[maybeadoc]

Similar here but im in bc

 

 

Will be quitting job and have been contributingto pension. Since it will only provide a small amt if kept till age 65, i will be given the option to cash out or keep it locked in till 65. I will get this option in december/jan...

 

Right now i have no idea of value and it is not for certain that i will have access to these funds so i didnt declare em!!!

 

However... When i get options and if one is to cash it out... I was thinking of waiting till june to exercise it ... So that when $$ comes it will be out of study period and will only affect next years studenbloan a bit... I have a family thus expenses are high

 

Lets see what happens!!

[Real Beef]

 

Right now i have no idea of value and it is not for certain that i will have access to these funds so i didnt declare em!!!

 

 

I am leaning towards this ...

 

Thanks for your insight.

[MCATwannabe]

I mean you can tap into Pension by claiming hardship. But you can also tap into disability insurance by claiming disability. You don't list those in your OSAP. So I'm not 100% best to wait until you get word from school.

[Real Beef]

Ok, I got the word from the bird at NOSM and pensions are NOT considered an asset .... Woo hoo!! Therefore I will be eligible for OSAP afterall which is great because of the grants and money you get that you dont have to pay back as opposed to a LOC where every penney needs to be paid back plus interest on top of the money you use during your studies!

 

Beef

[Satsuma]

If you can transfer your pension into an RRSP, I would also consider that option so you can take out your 20k for your studies. As you know, OSAP won't cover even the tuition of med school. So you do need extra.

 

That is what I did when I started med school. And it is nice to not have this random pension to remember about. I am now paying back my RRSP, and I know where my $ is ,and what is happening to it, which is nice.

[NutritionRunner]

If you can transfer your pension into an RRSP, I would also consider that option so you can take out your 20k for your studies. As you know, OSAP won't cover even the tuition of med school. So you do need extra.

 

That is what I did when I started med school. And it is nice to not have this random pension to remember about. I am now paying back my RRSP, and I know where my $ is ,and what is happening to it, which is nice.

 

I think that totally depends on your pension. When I left the public service, I had to put the funds I had contributed towards my pension into a "locked in" RRSP, that I can't touch at all until I am 65. So I was unable to withdraw any funds from that RRSP to return to school through the lifelong learning plan. Fortunately, I did have another RRSP (much smaller) that was not locked in, that I was able to access to help pay for the first year of my second degree.

[Real Beef]

Yes I will be using my personal RRSP with a bit over 10k for the purpose of paying for half of tuition using that Life Long Learning program. The Pension I have however I dont think can convert to an RRSP, as the literature I got on it was to move it into a LIRA ... whatever that is and soem other 'L' word ... so it is off bounds as far as I know. I will be able to save 10k before school starts so along with OSAP I will be fine for first year.

 

Beef