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Two or More Years of Pensionable Service

Terminating Employment with the Federal Public Service

Explore these links to see what pension benefits may be available to you upon termination:

The Administrative Process

When you decide to terminate your employment, the Government of Canada Pension Centre (Pension Centre) will require certain documents and forms from you to start the termination process to determine your pension entitlement.

When terminating employment you must also remember to notify your employer of your intention of leaving, as there may be other termination payments payable to you. Where possible, this should be done at least three months in advance of your termination date.

If you are on leave without pay and will not be returning to work prior to your termination of employment, the effective date of your cessation of employment will be the day following the date the Pension Centre is notified by your employer of your termination. If the Pension Centre is advised by your employer in advance of your termination date, the effective date of your termination will be the date indicated by your employer.

For more information, please consult the Your Public Service Pension and Benefits Portal or contact the Pension Centre.


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Pension Benefits

The pension benefits you will be entitled to when you leave the public service depend on your age and the number of years of pensionable service you have accumulated.

In addition, the date you became a member of the public service pension plan determines when you will be eligible to receive your pension benefits:

Plan Member on or before December 31, 2012

If you became a member of the public service pension plan on or before December 31, 2012, you are eligible to receive an unreduced pension benefit at age 60 with at least two years of pensionable service (or age 55 with 30 years of service).

The public service pension plan offers several types of pension benefits depending on your circumstances at termination:

Description of Pension Benefits - before December 31, 2012

Monthly Benefits - before December 31, 2012

There are three different types of monthly pension benefits payable under the public service pension plan. Your public service pension can be paid as an Immediate Annuity, an Annual Allowance or a Deferred Annuity, depending on the circumstances of your retirement.

Each pension benefit includes a lifetime pension which is payable until your death and a temporary bridge benefit which is payable until the first of the month following your 65th birthday or until you receive disability benefits from the Canada or Quebec Pension Plan (CPP or QPP), whichever happens first.

If you are eligible to receive a monthly pension payable immediately, you should expect to receive your first payment within 45 days of termination of employment, provided all required documentation has been submitted by your compensation advisor and yourself prior to your termination of employment.

Your pension is payable in monthly installments at the end of each month. Your pension payment is deposited directly to your bank account through direct deposit, on the third last banking day of each month.

The formula to calculate a pension benefit is:

Lifetime pension

When you retire, you will receive a lifetime pension. Your annual lifetime pension is based on your average salary and years of pensionable service, as follows:

1.375%*
X
Your average salary up to the AMPE**
X
Your years of pensionable service (maximum 35 years)
PLUS

2%
X
Your average salary in excess of the AMPE**
X
Your years of pensionable service (maximum 35 years)

Note: If your pension includes part-time service, the benefits are adjusted to reflect the part-time assigned hours of work compared to the full-time hours of the position.

* This percentage applies if you will reach age 65 in 2012 or later, i.e. you were born in 1947 or later. The percentages if you were born before 1947 are indicated below:

  • Before 1943 = 1.3%
  • 1943 = 1.315%
  • 1944 = 1.330%
  • 1945 = 1.345%
  • 1946 = 1.360%

** This value, set by the Canada Pension Plan, is the average maximum pensionable earnings for your year of retirement.

Bridge Benefit

If you retire before age 65, you may also receive a bridge benefit payable until age 65 or until you become entitled to CPP or QPP disability benefits. The bridge benefit amount was previously referred to as the CPP or QPP reduction. If you receive early or late CPP or QPP retirement benefits (before or after age 65), your bridge benefit will still stop at age 65 (or earlier if you start receiving CPP or QPP disability benefits). The bridge benefit is calculated as follows:

0.625%*
X
Your average salary up to the AMPE**
X
Your years of pensionable service (maximum 35 years)

* This percentage applies if you will reach age 65 in 2012 or later, i.e. you were born in 1947 or later. The percentages if you were born before 1947 are indicated below:

  • Before 1943 = 0.700%
  • 1943 = 0.685%
  • 1944 = 0.670%
  • 1945 = 0.655%
  • 1946 = 0.640%

Total Pension

Your total pension (lifetime pension and bridge benefit), payable until age 65 or until you become entitled to CPP or QPP disability benefits, will be equal to 2 per cent of your average salary.

If you are age 65 or older when you retire, the bridge benefit is not paid.

Immediate Annuity

An immediate annuity is a monthly pension benefit payable immediately if you terminate employment:

  • on or after age 60 with at least two years of pensionable service;
  • at any age if approved for a medical retirement, with at least two years of pensionable service;
  • between ages 55 and 60 with at least 30 years of pensionable service.

If you qualify for an immediate annuity, you can calculate your benefit by using the Pension Benefits Calculator located in the Compensation Web Applications, Active Member Pension Applications.

Annual Allowance

An annual allowance is a monthly pension benefit payable if you are between ages 50 and 60 with at least two years of pensionable service. It is reduced to take into account early receipt of the pension benefit. This reduction is permanent, except if you become disabled and are entitled to an immediate annuity before reaching age 60. An annual allowance is payable from the later of your 50th birthday, date of termination or date of option. It is important to note that if you are 50 years of age or over and wish to receive your annual allowance at date of retirement, your option for an annual allowance must be made prior to your retirement date.

The reduction applied to the pension is calculated according to age and/or service. The reduction is calculated based on one of the following formulae:

FORMULA 1: (if you are between 50 and 60 years of age with less than 25 years of service)

  • The reduction is 5% for every year you are under age 60 (60 - age [to the nearest tenth of a year]).
  • If you terminate employment prior to age 50, the reduction is determined using Formula 1 only, regardless of the number of years of pensionable service you have.
  • If you terminate employment and opt for an annual allowance prior to age 50, the age used in Formula 1 will always be 50, which is the age at the time the allowance becomes payable.

Note: Formula 1 is only used to calculate the reduction if you have less than 25 years of pensionable service.

FORMULA 2: (if you are between 50 and 60 years of age with at least 25 years of service)

The reduction is the greater of a) or b):

  1. 5% for every year you are under age 55 (55 - age [to the nearest tenth of a year]).
    or
  2. 5% for every year that your pensionable service is less than 30 years (30 - service [to the nearest tenth of a year]).

If you are age 55 and over with at least 25 years of service, compare Formula 1 and 2 and apply the lowest reduction.

If you qualify for an annual allowance, you can calculate this benefit by using the Pension Benefits Calculator located in the Compensation Web Applications, Active Member Pension Applications.

Deferred Annuity

A deferred annuity is an unreduced pension benefit payable at age 60, if you have at least two years of pensionable service.

You must make a pension option within one year of leaving the public service. After one year, if you have not made your option for a benefit, you will be deemed to have opted for a deferred annuity.

Should you choose this option, at any time between age 50 and 60, you may request a reduced pension payable immediately. Please refer to the Annual Allowance section above for more details. If you become disabled before reaching age 60, you may be entitled to an immediate annuity, if Health Canada certifies that you are disabled.

If you qualify for a deferred annuity, you can calculate your benefit by using the Pension Benefits Calculator located in the Compensation Web Applications, Active Member Pension Applications.

Lump Sum Benefits

There are lump sum pension benefit options available in lieu of receiving a monthly pension benefit. These options are explained below in greater detail.

Transfer Value

If you leave the public service before you reach age 50, you may choose to receive your earned pension benefits as a transfer value lump sum payment rather than as a future monthly pension. A transfer value is a lump sum equal to the value of your future pension benefit (deferred pension). If you choose this option, you must do so within one year of leaving the public service otherwise, you will be deemed to have opted for a deferred annuity. Once the choice is made, the transfer value option is irrevocable.

Note: If you become re-employed in the public service and a plan member after having received a transfer value, you would be covered under the current pension rules where the normal retirement age is 65. To learn more, visit the Information concerning changes to the public sector pension plans page of the Treasury Board of Canada Secretariat's Web site.

The rate of return made by funds invested in a locked-in vehicle depends on the rates of return that are available over time in the market place as well as your investment decisions, which will in turn determine the eventual level of income available to you and your dependants. The investment risk is your full responsibility.

If you choose this option, there is no survivor benefits payable under the public service pension plan in the event of your death. In addition, there is no guarantee that the eventual pension income will be equal to the deferred annuity, associated survivor benefits and pension indexing entitlement payable in the future, had the assets been left in the public service pension fund.

The transfer value is calculated as of the valuation date, which is the later of your termination of employment or the date of option, and is based on a number of economic assumptions including net interest rate assumptions. The payment amount may differ from the estimate amount due to the fluctuation in interest rates. These interest rate assumptions vary monthly and the rates in effect, at the later of the date of option or termination date, determine the amount of the payment.

If you are making service buyback payments, only the service paid for up to the date of the option can be included in the transfer value. Therefore, it is important to consider the possibility of paying the balance owing on your service buyback before making your transfer value option in order to increase the payment amount.

Unpaid deficiencies in contributions due to a period of leave without pay or defaulted payments on service buybacks will be recovered from your transfer value payment unless you make payment arrangements before the transfer value is paid.

In accordance with the limits specified in the Income Tax Regulations, a transfer value payment may have three components:

Amount within tax limits

This portion of the lump sum must be moved directly into a Registered Pension Plan (RPP), a locked-in Registered Retirement Savings Plan (RRSP), or a financial institution in order to purchase an annuity.

The amount within the tax limit is calculated as follows: multiply the annual pension payable at age 65 by the age factor at payment date.

Attained Age Present Value Factor
Under 50 9.0
50 9.4
51 9.6
52 9.8
53 10.0
54 10.2
55 10.4

In order for the Government of Canada Pension Centre to issue your payment, you and your financial institution must complete and return the following forms:

Direct Transfer of a Single Amount under Subsection 147(19) or Section 147.3 (T2151)

Certification of Lock-in for Purposes of the Public Service Superannuation Act or the Pension Benefits Division Act (PWGSC-TPSGC 2347-18)

Amount in excess of tax limits

Where a portion of the transfer value exceeds the tax limit amount, the payment will be made directly to you and that amount becomes part of your taxable income in the year it is paid. If you have sufficient RRSP contribution room, no tax will be deducted on the amount that you transfer to your RRSP.

If you wish to transfer all or a portion of this amount to a RRSP, you must provide us with one of the following documents:

  1. Signed and dated letter certifying that you have checked with the Canada Revenue Agency (CRA) and that you have sufficient RRSP contribution room available. Your letter must also indicate the name and address of your financial institution, your RRSP account number and the specific amount of the payment that is to be transferred to a RRSP; or
  2. Copy of your latest "Notice of Assessment" from CRA indicating the available RRSP deduction limit. You must sign and date this notice and also provide us with the name and address of your financial institution, your RRSP account number and the specific amount of the payment that is to be transferred to a RRSP.

Amount under the Retirement Compensation Arrangement (RCA)

The Income Tax Act places restrictions on the pension benefits accrued per year of service. Pension benefits, which are within the limits allowed under the Income Tax Act, will be paid under the Public Service Superannuation Act, with the remainder being paid from the RCA. The RCA is a plan which provides benefits that exceed the allowable limits for a registered pension plan. If your average salary or your projected survivor benefits exceeds the public service pension plan maximum benefit threshold, the transfer value calculation will include an amount in addition to the two amounts described above. This amount would be paid under the RCA, established under the Special Retirement Arrangements Act. The RCA transfer value amount cannot be transferred to a tax-sheltered vehicle; it must be paid directly to you and taxed as required by the Income Tax Regulations.

Return of Contributions

If you terminate your employment with less than two years of pensionable service, a Return of Contributions is your only benefit entitlement under the public service pension plan. A Return of Contributions is a lump sum equal to the pension contributions you paid into the plan, plus accrued interest. The rate of interest payable on a Return of Contributions is calculated at the annual rate of return of the public service pension fund, compounded quarterly to the end of the quarter preceding the date of payment.

If you have two or more years of pensionable service for which you have an established pension benefit entitlement and you voluntarily resign before completing two years of continuous employment in the public service, you are only entitled to a Return of Contributions for that later period of service which could include a service buyback made during your last period of employment.

If you cannot acquire two or more years of pensionable service because you are already entitled to a pension based on more than 33 years of pensionable service either under the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, you may have a choice of benefits other than a Return of Contributions.

You have the option of having your Return of Contributions paid directly to you or transferring it to a RRSP or a RPP. If you choose to have your return paid directly to you, federal and provincial income tax will be deducted at source based on your province of residence (or country of residence for non-residents). A pension adjustment reversal will be reported to the Canada Revenue Agency to restore your RRSP room, if applicable.

Note: If you become re-employed in the public service and a plan member after having received a return of contributions, you would be covered under the current pension rules where the normal retirement age is 65. To learn more, visit the Information concerning changes to the public sector pension plans page of the Treasury Board Secretariat's Web site.

Additional Options

Medical Retirement

You will qualify for a Medical Retirement if Health Canada certifies that you meet the following definition of disability:

A physical or mental impairment that prevents the individual from engaging in any employment for which the individual is reasonably suited by virtue of his education, training or experience and that can reasonably be expected to last for the rest of the individual's life.

If you retire because of disability at age 60 or older, your benefits will be the same as if you had retired due to age.

If you have to retire because of disability before you reach age 60, you will receive an immediate annuity unless you have less than two years of pensionable service.

If you become disabled and receive an immediate annuity, but later regain your health and return to work as a plan member, your immediate annuity is terminated and converted to a deferred annuity payable at age 60. If you then wish to convert the deferred annuity to an annual allowance, you may do so at any time after reaching age 50, if you are not employed as a plan member at that time.

Please note that if you become a member of the public service pension plan, your pension will only be payable when you terminate your employment. Furthermore, a medical examination will be required if you wish to retire (for the second time) on medical grounds.

If you wish to pursue retirement for medical reasons, please notify the Pension Centre and they will provide you with further information.

Pension Transfer Agreement

If you have accepted or plan to accept a position with an employer outside the public service following your termination of employment, you may wish to consider transferring your pension credits to your new employer. This can be done if a Pension Transfer Agreement exists between the new employer and the Government of Canada (certain deadlines and restrictions apply). Further information can be found in the Pension Transfer Out section of the Pension Portability Package or by contacting the Pension Centre.

Note: If you transfer your pension credits to a new employer's pension plan under the general portability rules or a Pension Transfer Agreement and you become re-employed in the public service and a plan member, you will be covered under the current pension rules where the normal retirement age is 65. To learn more, visit the Information concerning changes to the public sector pension plans page of the Treasury Board Secretariat's Web site.

Transfer to the Canadian Forces or the Royal Canadian Mounted Police pension plan

If you have accepted or plan to accept a position with the Canadian Forces or Royal Canadian Mounted Police, you may wish to consider transferring your pensionable service from the public service pension plan to their pension plan. Further information can be obtained from the Service Buyback Package.

Note: If you transfer the pension accumulated under the public service pension plan to the Canadian Forces or the Royal Canadian Mounted Police pension plan but you are later re-employed in the public service and you become a plan member, you will be covered under the current pension plan rules where the normal retirement age is 65. To learn more, visit the Information concerning changes to the public sector pension plans page of the Treasury Board Secretariat's Web site.

Plan member on or after January 1, 2013

If you became a member of the public service pension plan on or after January 1, 2013, you are eligible to receive an unreduced pension benefit at age 65 with at least two years of pensionable service (or age 60 with 30 years of service).

The public service pension plan offers several types of pension benefits depending on your circumstances at termination:

Description of Pension Benefits - after January 1, 2013

Monthly Benefits - after January 1, 2013

There are three different types of monthly pension benefits, payable under the public service pension plan. Your public service pension can be paid as an Immediate Annuity, an Annual Allowance or a Deferred Annuity, depending on the circumstances of your retirement.

Each pension benefit includes a lifetime pension which is payable until your death and a temporary bridge benefit which is payable until the first of the month following your 65th birthday or until you receive disability benefits from the Canada or Quebec Pension Plan (CPP or QPP), whichever happens first.

If you are eligible to receive a monthly pension payable immediately, you should expect to receive your first payment within 45 days of termination of employment, provided all required documentation has been submitted by your compensation advisor and yourself prior to your termination of employment.

Your pension is payable in monthly installments at the end of each month. Your pension payment is deposited directly to your bank account through direct deposit, on the third last banking day of each month.

The formula to calculate a pension benefit is:

Lifetime pension

When you retire, you will receive a lifetime pension. Your annual lifetime pension is based on your average salary and years of pensionable service, as follows:

1.375%*
X
Your average salary up to the AMPE**
X
Your years of pensionable service (maximum 35 years)
PLUS
2%
X
Your average salary in excess of the AMPE**
X
Your years of pensionable service (maximum 35 years)

Note: If your pension includes part-time service, the benefits are adjusted to reflect the part-time assigned hours of work compared to the full-time hours of the position.

* This percentage applies if you will reach age 65 in 2012 or later, i.e. you were born in 1947 or later.  The percentages if you were born before 1947 are indicated below:

  • Before 1943 = 1.3%
  • 1943 = 1.315%
  • 1944 = 1.330%
  • 1945 = 1.345%
  • 1946 = 1.360%

** This value, set by the Canada Pension Plan, is the average maximum pensionable earnings for your year of retirement.

Bridge Benefit

If you retire before age 65, you may also receive a bridge benefit payable until age 65 or until you become entitled to CPP or QPP disability benefits. The bridge benefit amount was previously referred to as the CPP or QPP reduction. If you receive early or late CPP or QPP retirement benefits (before or after age 65), your bridge benefit will still stop at age 65 (or earlier if you start receiving CPP or QPP disability benefits). The bridge benefit is calculated as follows:

0.625%*
X
Your average salary up to the AMPE**
X
Your years of pensionable service (maximum 35 years)

* This percentage applies if you will reach age 65 in 2012 or later, i.e. you were born in 1947 or later. The percentages if you were born before 1947 are indicated below:

  • Before 1943 = 0.700%
  • 1943 = 0.685%
  • 1944 = 0.670%
  • 1945 = 0.655%
  • 1946 = 0.640%

Total Pension

Your total pension (lifetime pension and bridge benefit), payable until age 65 or until you become entitled to CPP or QPP disability benefits, will be equal to 2 per cent of your average salary .

If you retire at age 65 or older, the bridge benefit is not paid.

Immediate Annuity

An immediate annuity is a monthly pension benefit payable immediately if you terminate employment:

  • on or after age 65 with at least two years of pensionable service;
  • at any age if approved for a medical retirement, with at least two years of pensionable service;
  • between ages 60 and 65 with at least 30 years of pensionable service.

Annual Allowance

An annual allowance is a monthly pension benefit payable if you are between ages 55 and 65 with at least two years of pensionable service. It is reduced to take into account early receipt of the pension benefit. This reduction is permanent, except if you become disabled and are entitled to an immediate annuity before reaching age 65. An annual allowance is payable from the later of your 55th birthday, date of termination or date of option. It is important to note that if you are 55 years of age or over and wish to receive your annual allowance at date of retirement, your option for an annual allowance must be made prior to your retirement date.

The reduction applied to the pension is calculated according to age and/or service. The reduction is calculated based on one of the following formula:

FORMULA 1: (if you are between 55 and 65 years of age with less than 25 years of service)

  • The reduction is 5% for every year you are under age 65 (65 - age [to the nearest tenth of a year]).
  • If you terminate employment prior to age 55, the reduction is determined using Formula 1 only, regardless of the number of years of pensionable service you have.
  • If you terminate employment and opt for an annual allowance prior to age 55, the age used in Formula 1 will always be 55, which is the age at the time the allowance becomes payable.

Note: Formula 1 is only used to calculate the reduction if you have less than 25 years of pensionable service.

FORMULA 2: (if you are between 55 and 65 years of age with at least 25 years of service)

The reduction is the greater of a) or b):

  1. 5% for every year you are under age 60 (60 - age [to the nearest tenth of a year]), or
  2. 5% for every year that your pensionable service is less than 30 years (30 - service [to the nearest tenth of a year]).

If you are age 60 and over with at least 25 years of service, compare Formula 1 and 2 and apply the lowest reduction.

Deferred Annuity

A deferred annuity is an unreduced pension benefit payable at age 65, if you have at least two years of pensionable service.

You must make a pension option within one year of leaving the public service. After one year, if you have not made your option for a benefit, you will be deemed to have opted for a deferred annuity.

Should you choose this option, at any time between age 55 and 65, you may request a reduced pension payable immediately. Please refer to the Annual Allowance section above for more details. If you become disabled before reaching age 65, you may be entitled to an immediate annuity, if Health Canada certifies that you are disabled.

Lump Sum Benefits

There are lump sum pension benefit options available in lieu of receiving a monthly pension benefit. These options are explained below in greater detail.

Transfer Value

If you leave the public service before you reach age 55, you may choose to receive your earned pension benefits as a transfer value lump sum payment rather than as a future monthly pension. A transfer value is a lump sum equal to the value of your future pension benefit (deferred pension). If you choose this option, you must do so within one year of leaving the public service otherwise, you will be deemed to have opted for a deferred annuity. Once choice is made, the transfer value option is irrevocable.

The rate of return made by funds invested in a locked-in vehicle depends on the rates of return that are available over time in the market place as well as your investment decisions, which will in turn determine the eventual level of income available to you and your dependants. The investment risk is your full responsibility.

If you choose this option, there is no survivor benefits payable under the public service pension plan in the event of your death. In addition, there is no guarantee that the eventual pension income will be equal to the deferred annuity, associated survivor benefits and pension indexing entitlement payable in the future, had the assets been left in the public service pension fund.

The transfer value is calculated as of the valuation date, which is the later of your termination of employment or the date of option, and is based on a number of economic assumptions including net interest rate assumptions. The payment amount may differ from the estimate amount due to the fluctuation in interest rates. These interest rate assumptions vary monthly and the rates in effect, at the later of the date of option or termination date, determine the amount of the payment.

If you are making service buyback payments, only the service paid for up to the date of the option can be included in the transfer value. Therefore, it is important to consider the possibility of paying the balance owing on your service buyback before making your transfer value option in order to increase the payment amount.

Unpaid deficiencies in contributions due to a period of leave without pay or defaulted payments on service buybacks will be recovered from your transfer value payment unless you make payment arrangements before the transfer value is paid.

In accordance with the limits specified in the Income Tax Regulations, a transfer value payment may have three components:

Amount within tax limits

This portion of the lump sum must be moved directly into a Registered Pension Plan (RPP), a locked-in Registered Retirement Savings Plan (RRSP), or a financial institution in order to purchase an annuity.

The amount within the tax limit is calculated as follows: multiply the annual pension payable at age 65 by the age factor at payment date.

Attained Age Present Value Factor
Under 50 9.0
50 9.4
51 9.6
52 9.8
53 10.0
54 10.2
55 10.4

In order for the Government of Canada Pension Centre to issue your payment, you and your financial institution must complete and return the following forms:

Direct Transfer of a Single Amount under Subsection 147(19) or Section 147.3 (T2151)

Certification of Lock-in for Purposes of the Public Service Superannuation Act or the Pension Benefits Division Act (PWGSC-TPSGC 2347-18)

Amount in excess of tax limits

Where a portion of the transfer value exceeds the tax limit amount, the payment will be made directly to you and that amount becomes part of your taxable income in the year it is paid. If you have sufficient RRSP contribution room, no tax will be deducted on the amount that you transfer to your RRSP.

If you wish to transfer all or a portion of this amount to a RRSP, you must provide us with one of the following documents:

  1. Signed and dated letter certifying that you have checked with the Canada Revenue Agency (CRA) and that you have sufficient RRSP contribution room available. Your letter must also indicate the name and address of your financial institution, your RRSP account number and the specific amount of the payment that is to be transferred to a RRSP; or
  2. Copy of your latest "Notice of Assessment" from CRA indicating the available RRSP deduction limit. You must sign and date this notice and also provide us with the name and address of your financial institution, your RRSP account number and the specific amount of the payment that is to be transferred to a RRSP.

Amount under the Retirement Compensation Arrangement (RCA)

The Income Tax Act places restrictions on the pension benefits accrued per year of service. Pension benefits, which are within the limits allowed under the Income Tax Act, will be paid under the Public Service Superannuation Act, with the remainder being paid from the RCA. The RCA is a plan which provides benefits that exceed the allowable limits for a registered pension plan. If your average salary or your projected survivor benefits exceeds the public service pension plan maximum benefit threshold, the transfer value calculation will include an amount in addition to the two amounts described above. This amount would be paid under the RCA, established under the Special Retirement Arrangements Act. The RCA transfer value amount cannot be transferred to a tax-sheltered vehicle; it must be paid directly to you and taxed as required by the Income Tax Regulations.

Return of Contributions

If you terminate your employment with less than two years of pensionable service, a Return of Contributions is your only benefit entitlement under the public service pension plan. A Return of Contributions is a lump sum equal to the pension contributions you paid into the plan, plus accrued interest. The rate of interest payable on a Return of Contributions is calculated at the annual rate of return of the public service pension fund, compounded quarterly to the end of the quarter preceding the date of payment.

If you have two or more years of pensionable service for which you have an established pension benefit entitlement and you voluntarily resign before completing two years of continuous employment in the public service, you are only entitled to a Return of Contributions for that later period of service which could include a service buyback made during your last period of employment.

If you cannot acquire two or more years of pensionable service because you are already entitled to a pension based on more than 33 years of pensionable service either under the Canadian Forces Superannuation Act or the Royal Canadian Mounted Police Superannuation Act, you may have a choice of benefits other than a Return of Contributions.

You have the option of having your Return of Contributions paid directly to you or transferring it to a RRSP or a RPP. If you choose to have your return paid directly to you, federal and provincial income tax will be deducted at source based on your province of residence (or country of residence for non-residents). A pension adjustment reversal will be reported to the Canada Revenue Agency to restore your RRSP room, if applicable.

Additional Options

Medical Retirement

You will qualify for a Medical Retirement if Health Canada certifies that you meet the following definition of disability:

A physical or mental impairment that prevents the individual from engaging in any employment for which the individual is reasonably suited by virtue of his education, training or experience and that can reasonably be expected to last for the rest of the individual's life.

If you retire because of disability at age 65 or older, your benefits will be the same as if you had retired due to age.

If you have to retire because of disability before you reach age 65, you will receive an immediate annuity unless you have less than two years of pensionable service.

If you become disabled and receive an immediate annuity, but later regain your health and return to work as a plan member, your immediate annuity is terminated and converted to a deferred annuity payable at age 65. If you then wish to convert the deferred annuity to an annual allowance, you may do so at any time after reaching age 55, if you are not employed as a plan member at that time.

Please note that if you become a member of the public service pension plan, your pension will only be payable when you terminate your employment. Furthermore, a medical examination will be required if you wish to retire (for the second time) on medical grounds.

If you wish to pursue retirement for medical reasons, please notify the Pension Centre and they will provide you with further information.

Pension Transfer Agreement

If you have accepted or plan to accept a position with an employer outside the public service following your termination of employment, you may wish to consider transferring your pension credits to your new employer. This can be done if a Pension Transfer Agreement exists between the new employer and the Government of Canada (certain deadlines and restrictions apply). Further information can be found in the Pension Transfer Out section of the Pension Portability Package or by contacting the Pension Centre.

Transfer to the Canadian Forces or the Royal Canadian Mounted Police pension plan

If you have accepted or plan to accept a position with the Canadian Forces or Royal Canadian Mounted Police, you may wish to consider transferring your pensionable service from the public service pension plan to their pension plan. Further information can be obtained from the Service Buyback Package.


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Supplementary Death Benefit (SDB)

The SDB plan is a form of decreasing term life insurance protection. The plan provides a benefit equal to twice your annual salary, rounded up to the next multiple of $1,000.

If you maintain coverage under this plan, you may name or change your beneficiary at any time. In order to do so, you must complete the Naming or Substitution of a Beneficiary (PWGSC-TPSGC 2196) form.

The SDB contributions will be determined based on your eligible annual salary at termination of employment and the type of pension benefit payable at termination.

Note: Certain agencies and public service corporations do not participate in the SDB plan. Former employees of those agencies or corporations cannot participate in this plan as pensioners. If you are unsure if your employer participates in the SDB plan, please contact the Pension Centre.

Note: If you choose to transfer your service to the Canadian Forces, you may have Supplementary Death Benefit coverage under their plan.

Supplementary Death Benefit (SDB) participant at regular rate

If you are entitled to receive an immediate pension benefit (immediate annuity or immediate annual allowance payable within 30 days of termination) Supplementary Death Benefit coverage automatically continues at the same contribution rate as an active plan member and will be deducted from your monthly pension.

Effective April 1st or October 1st, whichever comes first, following your 65th birthday, you will be credited with a $10,000 paid up coverage and your contributions will be reduced accordingly. In addition, your coverage and contributions will be reduced effective April 1st or October 1st following your 66th birthday, whichever comes first, by 10% yearly until age 75, at which time you will retain a paid up benefit of $10,000.

At any time after 30 days following your termination, you may cancel your coverage or reduce it to $10,000 by completing the Election to Reduce Benefit to $10,000 (PWGSC-TPSGC 2041-1) form.

If you are eligible to continue your SDB coverage at the regular rate after your termination of employment, please refer to the SDB Estimates Statement received from the Pension Centre or contact them for your coverage and contribution information.

Supplementary Death Benefit (SDB) participant at commercial rate

If you opt for a pension benefit payable in the future (deferred annuity or deferred annual allowance) or a transfer value, you may elect to continue your coverage under the SDB plan at the commercial rate. Contributions are paid annually in advance to the Pension Centre. When your deferred annuity or annual allowance becomes payable, you may choose to have your monthly deductions taken from your pension.

Commercial rates are higher than the regular contribution rate. Your estimated contribution rates are available on the SDB Estimates Statement received from the Pension Centre or by contacting them.

If you opt for a Return of Contributions and you have two years of continuous employment in the public service (without a break of more than three months) or you have been a SDB participant for at least two years including participation as a member of the Canadian Forces, you may choose to continue coverage at the commercial rate. If you are receiving a pension benefit under the Canadian Forces pension plan, you will be eligible to reinstate your SDB coverage under their plan.

If you are entitled to a lump sum payment, contributions are to be paid annually in advance to the Pension Centre.

To apply for continued coverage under the SDB plan, you must complete the form Election to Continue as Participant under The Supplementary Death Benefit (SDB) Plan (PWGSC-TPSGC 2017) and return it with your annual contributions to the Pension Centre within one year before or within 30 days after ceasing to be employed.

If you make a valid choice to continue participation in the SDB plan, your coverage and contributions will reduce by 10% per year effective April 1st or October 1st following your 66th birthday, whichever comes first. Your coverage will cease at age 75.


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Pension Indexing

Consumer Price Index

Your pension benefits increase each January after you terminate employment to take into account increases in the Consumer Price Index (CPI). The first increase payable the year after you terminate employment will be prorated to reflect the number of full months left in the year in which you terminated your employment. If there is no change in the CPI, or if it drops, your pension will not be adjusted that year.

If you are entitled to a deferred annuity when you terminate your employment, your pension, when it is payable, will be increased by the total accumulated percentage increases from your date of termination of employment.

Example: If an employee terminates employment on August 20, then he would be entitled to a pension indexing increase of 4/12 of the total adjustment for the following year.

Prorated Increase Table
Month of Termination Prorated Increase for the Following Year
January 11/12
February 10/12
March 9/12
April 8/12
May 7/12
June 6/12
July 5/12
August 4/12
September 3/12
October 2/12
November 1/12
December 0/12

When you stop receiving the bridge benefit, either at age 65 or when you start receiving CPP or QPP disability benefits, your indexing will be recalculated based on your lifetime pension amount only.

Effects of re-employment on indexing benefits

If you become re-employed in the public service and again become a plan member, the payment of your pension, including indexing, will cease. When you cease to be employed again, your indexing benefit will be based on the amount of your basic pension at that time. Your termination date for determining the increased annual percentage will be the most recent termination date.

The new combination of pension benefits, that is, your new annuity plus the increase based on the later year of termination of employment, could be lower than the previous total entitlement. If you are thinking of taking a job where you will become plan member, carefully consider if it would affect your total pension benefit.


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Group Insurance Benefit Plans

You may be eligible to continue coverage under certain benefit plans:

Quick Guide

What pension option should you choose? There are many things to consider in your decision including what group insurance benefits can continue. Eligibility to continue benefits is dependant on what pension option you choose. Below is a reference guide which contains a more detailed explanation of all insurance benefits.

Acronyms

IA
Immediate Annuity
AA
Annual Allowance
DA
Deferred Annuity
TV
Transfer Value
ROC
Return of Contributions

X – indicates that benefits can continue

Benefits IA AA DA TV ROC
Supplementary Death Benefit at regular rate X - Indicates that benefits can continue X - Indicates that benefits can continue      
Supplementary Death Benefit at commercial rate     X - Indicates that benefits can continue X - Indicates that benefits can continue X - Indicates that benefits can continue*
Public Service Health Care Plan X - Indicates that benefits can continue X - Indicates that benefits can continue X - Indicates that benefits can continue**    
Pensioners' Dental Services Plan X - Indicates that benefits can continue X - Indicates that benefits can continue X - Indicates that benefits can continue**    
British Columbia Medical Services Plan X - Indicates that benefits can continue X - Indicates that benefits can continue X - Indicates that benefits can continue**    
Medavie Blue Cross (Atlantic or Quebec residents) X - Indicates that benefits can continue X - Indicates that benefits can continue X - Indicates that benefits can continue**    
Canada Savings Bonds X - Indicates that benefits can continue*** X - Indicates that benefits can continue***      
Government of Canada Workplace Charitable Campaign X - Indicates that benefits can continue X - Indicates that benefits can continue X - Indicates that benefits can continue**    
  • * In certain situations only. Please contact the Pension Centre for details.
  • ** You may be entitled to apply for coverage/deductions only once your Deferred Annuity becomes payable.
  • *** You can only continue the Canada Savings Bonds deductions from your pension if you had an existing Canada Savings Bonds deduction from your salary prior to retiring.

Public Service Health Care Plan

If you opt for a benefit payable immediately (immediate annuity or immediate annual allowance) you may continue your coverage by having contributions deducted from your monthly pension. To change your current level of coverage, you must submit a signed application form Public Service Health Care Plan – Pensioner Application (TBS-SCT 006492) (www) (PDF, 91.4 KB, Help for PDF file).

If you opt for a pension benefit payable in the future (deferred annual allowance or deferred annuity) you or your survivors may be eligible to re-join the Public Service Health Care Plan at that time.

If you were not covered under this plan as an employee, you may still be eligible to join this plan once pension payments begin. We encourage you to contact the Pension Centre for confirmation of your eligibility. If you are eligible and your completed application is received within 60 days of the date you terminate your employment, coverage will take effect on the 1st day of the month following receipt of your form. If your completed application is received more than 60 days after the date you become eligible, coverage will only take effect on the 1st day of the 4th month following receipt of your form.

Should you choose a lump sum benefit payment (i.e. Transfer Value, Return of Contributions) you will not be eligible to maintain coverage under the Public Service Health Care Plan.

For Quebec residents, the employer's portion of insurance contributions is considered a taxable benefit and is subject to Quebec income tax.

For Quebec and Ontario residents, the plan member's premiums are subject to the provincial sales tax.

Further information on the Public Service Health Care Plan, the different levels of coverage and the current rates for pensioners, can be obtained by referring to Health Care Plan at a Glance.

Note: Certain agencies and public service corporations do not participate in the pensioners' Public Service Health Care Plan. Former employees of those agencies or corporations cannot participate in this plan as pensioners. If you are unsure as to whether your employer participates in this plan, please contact the Pension Centre.

Pensioners' Dental Services Plan

If you opt for a benefit payable immediately, (immediate annuity or immediate annual allowance) you may be eligible to join the Pensioners' Dental Services Plan. If you were entitled to dental coverage as an employee, your dental coverage as a pensioner would be uninterrupted if the Pension Centre receives your Pensioners' Dental Services Plan Enrolment form within 60 days of your pension entitlement date. If you choose not to apply within the initial 60-day period, you still have the opportunity to join the Pensioners' Dental Services Plan at a later date.

If your Enrolment form is received later than 60 days from the effective date of your pension entitlement, your membership will begin on the first day of the second month following the date the Pension Centre receives your Enrolment Form. Coverage for all dental services begins on the same day as your membership begins.

If you opt for a benefit payable in the future (deferred annual allowance or deferred annuity), you or your survivors may be eligible to join the Pensioners' Dental Services Plan at that time.

Should you choose a lump sum benefit payment, you will not be eligible to join the Pensioners' Dental Services Plan.

Further information on the Pensioners' Dental Services Plan may be obtained from the Enrolment Information and Plan Summary booklet.

If you choose to apply for coverage, you can obtain the form "Pensioners' Dental Services Plan" (PWGSC-TPSGC 439-E) from the Pension Centre. Current contribution rates can be found on the Monthly Contribution Rates Web page.

For Quebec residents, the employer's portion of insurance contributions is considered a taxable benefit and is subject to Quebec income tax.

For Quebec and Ontario residents, the plan member's premiums are subject to provincial sales tax.

Note: Certain agencies and public service corporations do not participate in the Pensioners' Dental Services Plan. Former employees of those agencies or corporations cannot participate in this plan as pensioners. If you are unsure as to whether your employer participates in this plan, please contact the Pension Centre.

British Columbia Medical Services Plan

For residents of British Columbia, monthly premiums may be deducted from your pension if you opt for a benefit payable immediately (immediate annuity or immediate annual allowance).

Further information on the British Columbia Medical Services Plan may be obtained from the Health Insurance BC (www) Web site or by contacting British Columbia Medical Services Plan directly at 604-683-7151 or 1-800-663-7100.

If you choose to have this monthly premium deducted from your pension, please complete and forward form Application for Group Enrolment with British Columbia Medical Services Plan (HLTH 167) to the Pension Centre.

The premiums paid by the employer on your behalf for this insurance in any one year will be considered a taxable benefit for income tax purposes.

Medavie Blue Cross (Atlantic or Quebec residents)

If you have coverage under this plan as an employee, monthly premiums for this plan may be deducted from your pension if you opt for a pension benefit payable immediately (immediate annuity or immediate annual allowance).

Before Medavie Blue Cross deductions can be taken from your pension, you must obtain a letter of authorization from Medavie Blue Cross. Atlantic residents may contact Medavie Blue Cross at 1-800-667-4511 and Quebec residents at 1-888-261-4033.

Deductions are taken one month in advance of the month in which coverage begins.

For Quebec residents, the employer's portion of insurance contributions is considered a taxable benefit and is subject to Quebec income tax. The plan member's premiums are subject to the provincial sales tax.


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General Information

There are other factors to consider before making a decision about your pension:

Survivor Benefits

If you opt to receive a monthly pension benefit, now or in the future, your eligible survivor and children will be entitled to an allowance in the event of your death.

A survivor's allowance is payable to a legal spouse or to a common-law partner with whom you have lived in a relationship of a conjugal nature for at least one year, as long as that relationship began prior to your retirement from the public service and continued without interruption until your death. For children to be eligible for an allowance, they must be under age 18 or a full-time student between 18 and 25 years or age. To be eligible, the child must have been born before retirement.

If you marry after retirement, your survivor would not normally be entitled to an allowance. However, you may choose to provide your survivor with a benefit by taking a reduction in your own pension. You must apply for this coverage within one year from the date of your marriage or one year from the date your pension commences, whichever is later.

Here are some examples to illustrate:

  • You retire on June 10, 2010 and get married on October 23, 2010. You were not in a common-law relationship before the marriage therefore your surviving partner is not automatically entitled to a benefit. You can, however, opt at a cost, to provide your spouse with a survivors benefit.
  • You retire on June 10, 2010 and you start living in a common-law relationship on September 27, 2010. Your surviving partner would not be entitled to a benefit.
  • You have been living in a common-law relationship since February 7, 2009 and you retire on June 10, 2010. On October 23, 2010 you marry. In this situation, your spouse may be entitled to a survivor benefit.
  • You have been living in a common-law relationship since December 14, 2009 and you retire on June 10, 2010. On October 23, 2010 you marry. If your death is on or before December 14, 2010, (one year from the start of your common-law relationship), your surviving spouse would not be entitled to a benefit.

Should you choose a lump sum benefit payment, your survivors will not be entitled to survivor benefits.

Additional information on survivor benefits may be obtained from the When Death Occurs Web page.

Canada Pension Plan or Quebec Pension Plan

If you opt for a monthly pension benefit under the public service pension plan, your pension will consist of 2 parts:

  1. a lifetime pension, which is payable from the date you terminate employment until your death, and;
  2. a temporary bridge benefit (previously referred to as a reduction at age 65) payable from the date you terminate employment until the first of the month following your 65th birthday or earlier if you are receiving Canada or Quebec Pension Plan (CPP or QPP) disability benefits. Receipt of CPP or QPP early benefits (ages 60 to 65) has no impact on this temporary bridge.

The bridge benefit is only payable for a specified period because the public service pension formula has been adjusted to reflect the requirement to participate under CPP or QPP.

It is important that you complete a Pension Information Release (PWGSC-TPSGC 2265) form to confirm whether or not you are in receipt of a disability benefit from the Canada or Quebec Pension Plan (CPP or QPP) prior to age 65. Until the Government of Canada Pension Centre receives the form indicating that you are not in receipt of a disability benefit, the Pension Centre will assume that you are receiving disability benefits from the CPP or QPP and the bridge benefit amount will not be paid to you from your date of entitlement or date of termination, whichever is later.

For information on the Canada or Quebec Pension Plan, please contact their office. Information about the Canada Pension Plan may be obtained from the Service Canada Web site.

Information about the Quebec Pension Plan may be obtained from the Quebec Pension Plan (www) Web site.

Old Age Security Pension

This Government of Canada monthly benefit is payable to all persons aged 65 or more who satisfy certain conditions of residency.

Information about the Old Age Security may be obtained from the Service Canada - Old Age Security Pension Web page.

Re-employment in the Federal Public Service

If you are re-employed in the public service as a plan member before having made your pension benefit option, you cease to be entitled to exercise an option until you cease employment again.

If you are in receipt of an ongoing pension benefit and choose to become re-employed in the public service as a plan member, your monthly pension, (including indexing if applicable) will cease. You cannot receive a pension under the public service pension plan and accumulate pensionable public service simultaneously. If however, you are re-employed in a position that does not require you to become a plan member of the public service pension plan, you can receive both your pension and the salary from your new position.

You should note that if you become re-employed as a plan member, your pension entitlement may be negatively affected in several ways. First, indexing would be calculated based on your most recent termination date and you would lose any annual cost-of-living increases (indexing) you may have accumulated. In addition, if you were receiving an annual allowance previously, your future pension benefit may be reduced, when you cease to be re-employed, to take into consideration the length of time you received the annual allowance.

Important: Plan members who were members of the public service pension plan before January 1, 2013 will not remain covered under the pre-2013 pension plan terms if they:

  • terminate with less than two years of pensionable service and receive a return of contributions, but are later re-employed in the public service and become plan members again on or after January 1, 2013; or
  • receive a transfer value, are later re-employed in the public service and become plan members again on or after January 1, 2013; or
  • transfer their pension credits to a new employer’s pension plan under the general portability rules or a Pension Transfer Agreement, are later re-employed in the public service and become plan members again on or after January 1, 2013.

To learn more, you may visit the Pensions page of the Treasury Board of Canada Secretariat’s Web site.

Due to the potential impact of re-employment on your pension entitlement and the indexing payable on your pension, it is highly recommended that you consult the Pension Centre before becoming re-employed in the federal public service. You should ensure that you understand how your re-employment will affect your pension benefit entitlement. Re-employment may also affect your coverage under the Supplementary Death Benefit Plan, the Public Service Heath Care Plan and the Pensioners' Dental Services Plan.

Potential Service Buyback

If you have any prior pensionable service that may be purchased under the public service pension plan, keep in mind that this service must be bought back prior to ceasing your employment in the public service. Service buybacks increase pensionable service time, which may increase the value of your pension benefit or change your pension benefit options.

For additional information, refer to the Service Buyback Package.

Current Service Buyback

If you are currently paying for a service buyback from your salary, this monthly payment will continue from your immediate monthly pension benefit. Otherwise, your monthly payments should be sent directly to the Pension Centre until you become eligible to receive a pension or become re-employed as a plan member.

If you do not receive an immediate pension benefit, you may choose to delay your service buyback payment until your pension becomes payable. It is important to note that if you choose this method, interest of 4% per year is charged on your defaulted payments. This may result in a substantially higher monthly amount to be deducted from your pension when it becomes payable.

You may choose to pay the balance of your service buyback using termination payments payable by your employer. Please advise us if you wish to pursue this payment method, and we can provide you with an estimate of the balance owing on your service buyback. A copy of this information must then be provided to your compensation advisor for recovery action.

You can make a lump sum payment at any time to either pay off your balance owing, decrease your monthly payment amount or shorten your repayment period. You may also increase the amount of your monthly payment at any time to shorten your repayment period.

Leave without Pay

If you are on leave without pay at date of termination, you have the option of not counting as pensionable service the leave without pay period which extends after the first three months. In order to exercise this option, you must complete an Election Not to Count Leave Without Pay as Pensionable Service (PWGSC-TPSGC 2480) form and forward it to the Pension Centre prior to your official termination date. This choice will not be valid if you sign it after ceasing to be employed.

Deficiencies in Public Service Pension Plan and Supplementary Death Benefit contributions

If you have any public service pension plan and/or Supplementary Death Benefit contributions owing due to a period of leave without pay or for any other reason, these must be paid. If you choose not to count your leave without pay in excess of three months, only the amount of deficiencies for the first three months must be paid. You would have the following repayment options:

  • Pay the full amount from termination payments (see Note below).
  • Pay the full amount by personal cheque payable to the Receiver General for Canada.
  • Pay the public service pension plan amount through a RRSP transfer. (Supplementary Death Benefit contributions as well as any deficiencies in Retirement Compensation Arrangement contributions cannot be paid by RRSP transfer).
  • Pay the full amount through deductions from your monthly pension cheque (if applicable).

Note: The Pension Centre will provide you with an estimate of the amount of contributions owing for public service pension plan and Supplementary Death Benefit. However, if you wish to have the amounts owing recovered from a termination payment payable by your employer, you must advise your compensation advisor.

Debts Due to the Crown

If your employer informs the Pension Centre that you owe a debt to the Crown, such as overpaid salaries and allowances, these amounts will be recovered from your pension benefit. You will be advised of such recovery in writing.

Direct Deposit

As part of the Government of Canada's efforts to reduce paper consumption, the Pension Centre issues its pension payments by direct deposit. At the time of making your pension option, you will be required to provide your banking information to start direct deposit. Your monthly pension cheque will then be deposited to your bank account on the third last banking day of the month.

Income Tax

If you opt for an ongoing pension, income tax (federal and provincial) will be deducted at source based on your province of residence (for non-residents, based on the country of residence). If you wish to claim more than the basic personal amount, you must complete the Personal Tax Credits Return (TD1) form and the applicable provincial or territorial form, which can be found at TD1 forms.

Quebec residents should use the federal Personal Tax Credits Return (TD1 forms) and the provincial Source Deductions Return (TP 1015.3 V) (www) form.

Canada Savings Bonds

If you already had an existing Canada Savings Bonds deduction from your salary prior to termination, you may choose to continue to have this deducted from your monthly pension. However, Canada Savings Bonds deductions cannot be transferred to a RRSP once you become a pensioner.

Government of Canada Workplace Charitable Campaign (GCWCC)

If you opt for an ongoing benefit payable immediately (immediate annuity or immediate annual allowance) you may have the remaining deductions pledged as an employee deducted from your monthly pension.

You may also choose to complete your pledge by making payments directly to the GCWCC. Arrangements can be made by contacting 613-228-6700. More information can be found on the GCWCC (www) Web site.

Federal Superannuates National Association

The Federal Superannuates National Association is a non-profit organization bringing together pensioners from the public service, the Canadian Forces and the Royal Canadian Mounted Police as well as spouses and surviving spouses of these pensioners. The association promotes measures beneficial to its members and ensures that pensioners are kept informed with regard to their rights. More information can be found on their Web site Federal Superannuates National Association (www) or by calling 613-745-2559.


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Retirement Courses

As a member of the public service pension plan, your plan specific retirement planning information is delivered to you by way of either half-day session or as a component of a comprehensive two or three day retirement planning information session (formerly referred to as pre-retirement seminar). It is recommended that you attend such an information session at least five to ten years prior to retirement. Depending on the department, agency or Crown corporation with whom you are employed, several types of retirement planning information sessions may be available to you. Consult your manager for additional information or to register.

Also available, the You and Your Pension Plan video series, based on the half-day retirement courses. They offer you the opportunity to learn more about specific pension and group benefit topics that are important to you with unlimited access to the videos anytime, anywhere.


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Documents

Contact the Pension Centre. When you advise the Pension Centre of your intention of leaving the public service and your expected termination date, the Pension Centre will provide you with your personalized Pension Benefit Options Statement outlining your particular pension choices. They can answer other questions you may have. The Centre may also request the following documents:

  • Your Birth Certificate
  • Your Spouse's Birth Certificate
  • Your Children's Birth Certificate
  • Your Children's Adoption Certificate
  • Your Spouse's Death Certificate
  • Your Marriage Certificate
  • Evidence of Conjugal Relationship for Common Law or Same Sex Partners (Please see section 12 of the Annuitant's Benefits booklet for more details.)
  • Divorce Decree
  • Separation Agreement
  • Naming of Beneficiary form

It is important to have these documents on your file such as your birth certificate since age affects the type of pension benefit you can receive. In the event of your death, certificates related to your family are necessary for the payment of survivor and child allowances.


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Forms

All forms on this Web site are available in Portable Document Format (PDF). This means that you need a PDF software reader to view, print, or download these documents.

If you do not have a PDF software reader you can download and install one of the following free PDF software programs:

If you choose not to use a reader, you can have the PDF file converted to HTML or American Standard Code for Information Interchange (ASCII) text by using an online conversion service such as one offered by Adobe online conversion (www) or Google’s view as HTML (www) feature.

Once you have reviewed your personalized Pension Benefit Options Statement and have made your pension choice, the Pension Centre will require certain documents from you to start the process. These forms should be completed as soon as possible. Below is a guide outlining the required and optional forms based on your chosen pension option.

Acronyms

IA
Immediate Annuity
AA
Annual Allowance
DA
Deferred Annuity
TV
Transfer Value
ROC
Return of Contributions

X - Mandatory, O - Optional

Forms IA AA DA TV ROC
Pension Benefit Options Statement (PWGSC-TPSGC 2011E-PF) X X X X X
Pension Information Release (PWGSC-TPSGC 2265) X X      
Deductions from Annuity or Annual Allowance (PWGSC-TPSGC 1422) X X      
Certification of Lock-in for Purposes of the Public Service Superannuation Act or the Pension Benefits Division Act (PWGSC-TPSGC 2347-18)       X  
Direct Transfer of a Single Amount under Subsection 147(19) or Section 147.3 (T2151)       X  
Federal & Provincial Personal Tax Credits Return O O      
Naming or Substitution of a Beneficiary (PWGSC-TPSGC 2196) O O O O O
Election to Reduce Benefit to $10,000 (PWGSC-TPSGC 2041-1). O O      
Election to Continue as Participant under The Supplementary Death Benefit (SDB) Plan (PWGSC-TPSGC 2017)     O O O

This table outlines the required and optional forms based on your chosen pension option.

Note that the Pension Benefit Options Statement (PWGSC-TPSGC 2011E-PF) and the Pensioners' Dental Services Plan Form (PWGSC-TPSGC 439-E) must be obtained directly from the Pension Centre.

In order to have any of the deductions outlined in this package taken from a monthly pension benefit payable immediately, you must sign and return the form Deductions from Annuity or Annual Allowance (PWGSC-TPSGC 1422) to the Pension Centre. In addition, if choosing to have coverage under an optional Group Insurance Benefit Plan, an application may or may not be required. Reference should be made to the applicable section of the Group Insurance Benefit Plans for confirmation.

The Pension Benefit Options Statement (PWGSC-TPSGC 2011E-PF) form should be completed and returned to the Pension Centre regardless of which benefit you choose.

Canada Revenue Agency Forms

To obtain hard copies of these forms which have been designed to meet the needs of visually impaired people, please contact the Canada Revenue Agency.

Complete the TD1 Personal Tax Credits Return Form as well as the corresponding provincial form if you wish to increase your tax credit beyond the basic personal amount.

Alberta

British Columbia

Manitoba

New Brunswick

Newfoundland and Labrador

Northwest Territories

Nova Scotia

Nunavut

Ontario

Prince Edward Island

Quebec

Saskatchewan

Yukon


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Post Retirement

Here are some facts to keep in mind after you retire:

  • As a pensioner, you may contact the Pension Centre for further information regarding your pension plan.
  • The Pension Centre is usually able to process your first pension payment within 45 days of your termination date, provided your compensation advisor and yourself, have submitted all of the required documentation prior to your termination of employment.
  • All future pension payments will be deposited to your bank account on the third last working day of each month instead of once every two weeks as you did when you were an employee.


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