Persons Required to Contribute to the Public Service Pension Plan

Contributing under the public service pension plan depends on the nature and the duration of the position the employee is appointed to. The following rules explain when a person is considered to be employed in the federal public service and when he will become a contributor.

A person becomes employed in the public service the earlier of:

  1. The first day for which he is paid as a full-time employee, or
  2. The first day which he received remuneration as a part-time employee with a 12 hours or more assigned work week.

Rule 1:

Every person employed in the public service on a full-time basis is required to contribute under the public service pension plan.

Rule 2:

Part-time employees initially hired on or after July 4, 1994 to work an average of at least 12 hours per week are required to contribute under the public service pension plan.

Rule 3:

Members of the public service pension plan become subject to the Retirement Compensation Arrangement (RCA) Regulations, No. 1Footnote * the later of:

  1. December 15, 1994, and
  2. The day on which the plan member's annual salary is in excess of the annual threshold amount.

Footnotes

Footnote 1

Due to income tax rules for registered pension plans, a portion of pension benefits for high salaried plan members is payable out of a separate RCA account.

Return to footnote * referrer