What can Jarrod do with his vested benefits upon terminating his employment?

When Jarrod terminates his employment, one of the key options available to him regarding his vested benefits is to transfer them into a locked-in retirement account (LIRA). This option is beneficial because it allows him to maintain the tax-deferred status of his retirement savings. A LIRA is specifically designed to hold pension plan benefits that have been transferred from an employer's plan, ensuring that the funds continue to grow tax-free until retirement.

Choosing this option is aligned with retirement planning, as it prevents premature access to the funds, thereby helping to ensure that the savings are preserved for future retirement needs. The legal framework surrounding pension plans often mandates that when an employee leaves a job and has vested benefits, these funds must either be left in the employer’s plan or transferred to a LIRA, ensuring they are safeguarded for retirement.

While there may be other actions he can take, such as cashing out or leaving funds in the employer's plan, the transfer to a locked-in retirement account is the most prudent and common approach for someone focused on securing their retirement future.