Client Service Bulletin - January 2009

Table of Contents

• Confidentiality of Information
• 2009 Annual Increase
• 2008 Tax Statements
• Pension Income Splitting
• Marriage After Retirement
• Integration of Benefits with the Canada and Quebec Pension Plans (CPP/QPP)
• Reminders
• Our Web Site
• Contact Information

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Confidentiality of Information

All information in our files is protected under the Privacy Act. If you wish to allow someone to receive information on your behalf, you must provide the Public Service Pension Centre with a written consent.

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2009 Annual Increase

The rate of the annual increase for 2009 is 2.5%. If you retired before 2008, you will receive the full rate. If you retired during 2008, you will receive a prorated portion of the rate for 2009. This increase also applies to recipients of survivors' benefits. For more information on how the indexing is applied, please refer to the pamphlets entitled Your Public Service Pension - Annuitants' Benefits, or Your Public Service Pension - Survivors' Benefits.

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2008 Tax Statements

The annual tax statements will be released during the month of February. Please allow sufficient time for postal delivery. Requests for replacements can be made after March 15.

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Pension Income Splitting

Beginning with the 2007 income tax return, Canadian residents who are in receipt of eligible pension income can allocate up to one-half of their eligible income to their resident spouse or common-law partner for income tax purposes. Essentially, eligible income is that which qualifies for the existing pension income tax credit. For more information on what constitutes eligible income and on how to request income splitting, you may contact the Canada Revenue Agency at 1-800-959-8281 or visit their Web site at: CRA.

Marriage After Retirement

If you marry after your retirement from the Public Service, you can choose to have survivor's benefits paid to your spouse following your death, subject to your pension being reduced. Information concerning this coverage, including estimates of the allowance and reduction amounts, can be obtained from the Public Service Pension Centre. 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.

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

Note: This section applies only to former Public Service employees and not their survivors.

When you become entitled to disability benefits at any age or normal retirement benefits at age 65 under the CPP or QPP, your Public Service benefits must be reduced. This reduction in benefits is related to the fact that while employed, you paid less into the Public Service pension plan due to the integration of contributions with the CPP and QPP. You must inform the Public Service Pension Centre immediately when you receive a disability benefit under the CPP or QPP. Failure to do so could result in an overpayment of your pension, which would have to be repaid.

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Reminders

• Keep the January cheque stub or direct deposit statement for future reference. The next direct deposit statement will be issued when your net pension amount changes by $2.00 or more, or next January, whichever occurs first.
• Please ensure you have your Pension Number (Superannuation Number) ready when contacting the Public Service Pension Centre. It is found on the cheque stub or the direct deposit statement. As well, our address and telephone numbers are on these documents. Your Public Service Pension File cannot be accessed with your Public Service Health Care Plan number.
• It is important that you provide the Public Service Pension Centre with accurate, up-to-date address and banking information to ensure that you continue to receive your payments and related information. Please verify whether the information on your January cheque or direct deposit statement is accurate and inform the Public Service Pension Centre if there are any errors or changes to be made. Address updates may be made in writing or by telephone with proper identification.

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Our Web Site

Your Public Service Pension and Benefits Web Portal contains information on a variety of topics of interest to Public Service retired members and their survivors. Simply choose Retired Member.

We are aware that the survivors and dependants of active and retired Public Service pension plan members are seeking pension-related information. For this reason, information specific to survivors and dependants will be added to the Portal in 2009.

Contact Information

There are several ways of communicating with us. Consult our Contact Us - Public Service Pension Centre page for further details.