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Originally posted by KumarM
I am thinking to move my RRSP $ to pension plan. I am told that it has to be done by the bank without me touching it. This gives me an opportunity for pension buyback option. I am not sure how it would help apart from increasing the pension (and the taxes). Else once I start drawing from RRSP, it would be taxed anyways.

Any suggestions?

KM

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This is a complex issue and there are various factors at play here.
While this is technically possible, I am sure you are aware that there are key differences between RRSP and pensions.
Whether this move is a good move for you or not depends on your overall situation - now and post-retirement.
I am assuming this is a DBP pension you are talking about.
If not (i.e. it's a DCP) then it's most likely not worth it.
Assuming it's DBP, you need to be aware of the following key differences between RRSP and a DBP specific to this discussion:

1. Once moved into a DBP, you lose all withdrawal rights, such as RRSP withdrawal for HBP, higher education and general withdrawal.
RRSP has very liberal rules around cash withdrawals, whereas DBPs are extremely strict.
Cash withdrawal is either not possible at all or possible under very rare circumstances and also depends on the province.

2. DBP has not left-over value, unlike RRSP.
Upon the death of the beneficiary, the payments ends.
OTOH, RRSP gets un-registered and becomes part of the deceased's estate and taxes are paid and the residue goes to a beneficiary (usually spouse or children or anyone else named in a will).

3. This will be a one-time deal and you will not be able to claim a tax deduction beyond the current year.
I'm not sure whether a DBP buyback will give you a tax deduction anyway or not.

4. You lose the ability to manage your investments (assuming this is a self-directed RRSP). This may or may not be a good thing, depending on how good the pension plan return is.

5. You lose the ability to decide when to start drawing down your retirement benefits.

6. You will need to liquidate your investments on the date of transfer. Unlike RRSP-to-RRSP, there is no transfer in-kind.

There are other differences as well and there may be things specific to your situation.