Alberta 
100,000

55

Commuted value (before taxes)
A 
A
800,000

3,500

Annual pension  B 
B
42,000

Present value factor  C 
C
10.4

Maximum transfer value to LIF/LIRA (B times C)  D 
D
436,800

Taxable cash (A minus D)  E 
E
363,200

F 
F
50,000

Taxable amount (E minus F)  G 
G
313,200

Less taxes  H 
H
158,696

Aftertax amount (G minus H)  I 
I
154,504

Commuted value (after taxes) (D plus I)  J 
J
591,304

RRSP contribution  K 
K

Commuted value & RRSP contribution (J plus K)  L 
L

Monthly pension amount 
3,500

Pension received at start or end of month? 

2.00%

25

5.00%

Lump sum (present value) of lifetime pension 
740,315

Results  
Commuted value (after taxes)  
Lump sum (present value) of lifetime pension  
Assumptions
Calculations use marginal tax rates as of . Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit. The present value factor is based on age and is defined by the Canadian Income Tax Act.
Disclaimer
Calculations use marginal tax rates as of . Rates take all federal and provincial taxes and surtaxes into account and the basic personal tax credit. The present value factor is based on age and is defined by the Canadian Income Tax Act.
Disclaimer