Benefits for Retired Members June 2011

Introduction

This booklet is your guide to the pension and other benefits payable to you and your dependants under the Public Service Superannuation Act (PSSA). Inside are details about your pension cheque, the coordination of benefits with the Canada and Quebec Pension Plans, annual increases payable to help offset increases in the cost of living, the effect of re-employment on your pension, and other important pension subjects. Please read the booklet carefully and keep it with your personal papers. You can record your pension data on the inside cover.

You and your family can turn to the Public Service Pension Centre (Pension Centre) for help with your questions relating to pension and insurance benefits. Section 1, "Public Service Pension Centre - Contact Information", describes how and where you can direct your inquiries.

This booklet is a general information guide, which contains important information. In the event of a discrepancy between the pertinent legislation and this guide, the legislation shall prevail.

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Glossary

Average Salary

Total salary received, or deemed to have been received, during the highest five consecutive years divided by five. Any salary revisions and lump sum payments which apply to periods of service during your best five year period are also included. Please note that overtime and certain other allowances are not considered as part of your salary for pension purposes. Normally, the average salary* period is your last five years of employment. For retirements* prior to June 17, 1999, the average salary* is calculated over a six-year period.

Average Maximum Pensionable Earnings (AMPE)

A five-year average calculated using

• the Year's Maximum Pensionable Earnings (YMPE) under the Canada Pension Plan (CPP) for the year of your retirement from the public service or the year in which your CPP or QPP regular retirement pension commences, whichever is earlier, and
• the YMPE for the four preceding years.

Prior to June 17, 1999, the AMPE was calculated over a three-year period.

Example:

The AMPE for someone retiring in 2004 is $39,080. This is the average of the YMPE for 2004, $40,500, and the YMPE for the four preceding years; [$39,900 (2003), $39,100 (2002), $38,300 (2001), $37,600 (2000)].

$195,400 (total YMPE) ÷ 5 = $39,080 (AMPE)

Bridge Benefit

A temporary amount payable from the date your pension begins until age 65 or when CPP or QPP disability benefits begin, whichever occurs first.

Child

A natural child, a stepchild, or an adopted child who at the time of death was dependent on the plan member for support.

Date of Retirement

The date on which the plan member most recently ceased to be employed, which is normally the day following the last day for which the plan member received salary. If the plan member was on leave without pay, the retirement date is the date specified by the plan member or the date notification of the retirement from the employing department is received by the Pension Centre, whichever is later.

Disabled/Disability

Occurs when a plan member becomes permanently unable to pursue any substantially gainful occupation prior to age 60. All disability cases must be confirmed by Health Canada.

Garnishment, Attachment and Pension Diversion Act

An Act to provide for the diversion of pension benefits payable under various Acts, including the Public Service Superannuation Act, to satisfy or partially satisfy an obligation to pay maintenance or support to a spouse, child or other dependant.

Immediate Pension

For purposes of Supplementary Death Benefit coverage, a pension that is payable immediately upon retirement or within 30 days after retirement.

Independent Contractor

A person who contracts to perform work or supply service at a fixed fee over a specific period of time. Service as an independent contractor does not normally qualify as pensionable service.

Lifetime Pension

The permanent portion of your pension payable from the date your pension begins until your death.

Pensionable Service

The total period of service from the date you started contributing under the Public Service Superannuation Act to the date of retirement. This includes any prior service that you have purchased (for which you are still making payments), and service credited by a transfer from another plan. It does not include periods of strike, suspension, unauthorized leave, leave without pay that you chose not to count as pensionable service, or any other periods during which you were not required to contribute to the plan. The maximum period of pensionable service, including other pensionable service in the federal public sector such as Canadian Forces (CF) or Royal Canadian Mounted Police (RCMP) service, is 35 years.

Pension Benefits Division Act

An Act to provide for the division of pension benefits payable under the Public Service Superannuation Act (and various other federal statutes) after the breakdown of a marriage or a conjugal relationship. An application for division may be submitted if an agreement or court order states that the plan member's pension is to be divided.

Public Service Superannuation Act (PSSA)

An Act to provide pension benefits to eligible federal public servants and their dependants.

Retirement

(see "Date of retirement")

Retirement Compensation Arrangement (RCA)

A plan which provides benefits that exceed the allowable limits for a registered pension plan under the Income Tax Act.

Return of Contributions

Return of the total monies paid under the Public Service Superannuation Act by the plan member together with interest compounded quarterly.

Survivor

The plan member's legal spouse, including a spouse who was separated but not divorced from the plan member at the time of his death. A survivor can also be a person who had been living with the plan member in a conjugal relationship as a common-law partner since before the plan member's retirement and for at least one year prior to his death.

Your Pension Data

An image describing Your Pension Data From top to bottom on the image - Pension Number, Effective Date of Pension, Pensionable Service, Years and Days, Average Salary, Total Monthly Pension Amount, Lifetime Pension, Bridge Benefit, Indexation (Cost of Living Pension Increases) including the Year, Percentage and New Monthly Pension Amount.

Survivor's Pension Data

An image describing Survivor's Pension Data From top to bottom on the image - Pension Number, Effective Date of Pension, Plan Member's Pensionable Service, Years and Days, Plan Member's Average Salary, Monthly Pension Amount, Children's Allowances, Indexation (Cost of Living Pension Increases), Year, Percentage and New Monthly Pension Amount.

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