Benefits for Retired Members
June 2011 - Section 3

Your Pension Cheque

Your pension is payable in monthly installments. If you are receiving a cheque by mail, you should receive it by the third last day of each month. However, due to irregularities in the mailing date or mail delivery, you may find that your cheques do not always arrive on the same day each month. These cheques are negotiable on the date shown on the cheque.

Most pensioners now receive their pension by means of Direct Funds Transfer (DFT), which allows you to have your pension electronically deposited to your bank account. It is a secure and dependable alternative to receiving a cheque by regular mail. If you are currently receiving a cheque by mail and wish to enroll for DFT, simply send us a void cheque with your signed letter authoring us to deposit your pension in accordance with the information on the cheque. Please include your pension number on both your letter and the void cheque. Your monthly pension should be deposited to your bank account by the third last banking day of the month.

Lost or Stolen Cheques

If your cheque is lost or stolen, contact the Pension Centre immediately (see Section 1). A signed cheque is the equivalent of cash and could be negotiated by anyone. You should therefore sign your cheque only when you arrive at the bank. Your cheque may be deposited directly to your bank account if you prefer. To obtain details and the necessary forms, please contact the Pension Centre.

Deductions from Your Pension Cheque

You can ensure that the proper deductions are being made by reviewing your DFT statement or the stub attached to your cheque. This shows your gross monthly pension and the amounts being deducted. The number shown in the illustration below is your pension number. You will receive a DFT statement or cheque stub each January and in any month in which your net pension changes by more than two dollars.

An image displaying the location of the pension number.

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Incapable or Unable to Manage Own Affairs

If you have granted someone a Power of Attorney, you must supply a certified copy of this document to the Pension Centre if you want that person to manage some of your pension affairs including an address change and requests for information. Should you become incapable of managing your affairs, someone can be designated as your payee either by a Court judgment or a designation as a payee under the Public Service Superannuation Act. Additional information regarding these matters can be obtained from the Pension Centre (see Section 1).

Diversion of Pension Benefits

Normally, no portion of your pension can be diverted to a third party. However, in accordance with the Garnishment, Attachment and Pension Diversion Act, an amount may be deducted for the support of a spouse, former spouse, child or other dependant if a court order to that effect has been issued by a court in Canada. You will be notified and have an opportunity to respond if an application for diversion is received. Amounts may also be withheld from your pension to satisfy a debt due to the Crown, such as income tax arrears.

Division of Pension Benefits

Under the Pension Benefits Division Act, your pension can be divided following the breakdown of a marriage or a conjugal relationship. Your pension can be divided up to a maximum of 50 percent upon receipt of a formal application for pension benefits division by you or your spouse, former spouse, or former partner. A division will occur only if a court order or agreement exists that provides for division of the pension benefits. You will be notified if an application is received and you will have an opportunity to object if there are valid reasons to oppose the division. A spouse or partner, former spouse or former partner can also apply to receive an estimate of the value of the benefits that would be subject to division under the Act. Please contact the Pension Centre (see Section 1) for more details.

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Taxation

You should retain any cheque stubs or DFT statements that you receive so that you can verify the information on your income tax statement (T4A, Relevé 1, Relevé 2 or NR4) that will be forwarded to you annually. If you are receiving benefits from the Retirement Compensation Arrangement (RCA) you will also receive a T4A-RCA statement.

If you wish to increase the amount of income tax deducted from your pension, you may write or call the Pension Centre (see Section 1) specifying the additional amount to be deducted.

If you intend to reside outside Canada, you may obtain information about your tax situation from the pamphlet Non-Residents and Income Tax, available from the Canada Revenue Agency.