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Benefits for Retired Members
June 2011 - Section 4

Coordination of Benefits with the Canada and Quebec Pension Plans (CPP and QPP)

When the CPP and QPP came into effect on January 1, 1966, the contribution rates under the federal public service pension plan were coordinated with those under the CPP and QPP rather than added to them. Since contributions were coordinated, pension benefits also had to be coordinated. As a result, the public service pension formula was adjusted to take into account the requirement to pay contributions to the CPP or QPP.

Your public service pension includes a lifetime pension payable until your death and a temporary bridge benefit. Because of the coordination of benefits, the bridge benefit stops once you reach age 65, which is the age when CPP or QPP benefits normally begin. It stops earlier if you start receiving CPP or QPP disability benefits before age 65.

The bridge benefit is a temporary pension benefit which is designed to provide you with a relatively stable pension income over the course of your retirement once your CPP or QPP benefits are taken into consideration. The cessation of the bridge benefit was previously described as a reduction in your public service pension at age 65.

Since indexing is calculated on the total pension benefit payable under the public service pension plan, once the bridge benefit stops, there is also a corresponding adjustment in the indexing amount paid (see Section 6).

Survivors' pensions are not affected by the coordination of benefits with the CPP and QPP.

Normally, the cessation of the bridge benefit occurs on the first of the month following your 65^th birthday, regardless of whether or not you are receiving benefits under the CPP or QPP. However, if you start receiving disability benefits under the CPP or QPP before you reach age 65 and are receiving a public service pension the bridge benefit portion of your pension will stop immediately.

If you begin to receive your public service pension before you reach age 65 and you are not receiving CPP or QPP disability benefits, you will receive both your lifetime pension and the bridge benefit from the date your pension becomes payable until the first day of the month following your 65^th birthday.

When you retired, you completed a form declaring whether or not you were entitled to a CPP or QPP disability pension, and authorizing the Pension Centre to verify this information with CPP or QPP authorities. While we will be requesting such confirmation periodically, it remains your responsibility to notify us immediately by either forwarding a copy of the CPP or QPP award letter or calling the Pension Centre if you become entitled to CPP or QPP disability benefits before your 65^th birthday. Any delay in notification will result in an overpayment of the bridge benefit that will have to be recovered.

Please note that you must apply for CPP or QPP benefits; you do not receive them automatically. For more information, contact your nearest CPP or QPP Office.

The CPP and QPP currently contain provisions permitting individuals to opt for CPP or QPP retirement benefits as early as age 60 or as late as age 70. Receipt of these early or deferred benefits will not change the date on which the bridge benefit will stop. The bridge benefit payable under the public service pension plan will end on the first of the month following your 65^th birthday or on the date that you become entitled to a CPP or QPP disability benefits, whichever is earlier.

The bridge benefit is based on the number of years of pensionable service to your credit under the public service pension plan since January 1, 1966 and on the average maximum pensionable earnings (AMPE) under the CPP or QPP. If your average salary used to calculate your public service pension is below the AMPE, your average salary will be used to calculate the bridge benefit.

The factor used to calculate the bridge benefit portion of your public service pension is determined based on the year you reach age 65. The following chart sets out the applicable factor used in the calculation of the bridge benefit.