Glossary—Pension portability package

Actuarial assumptions
Used in determining the value of the pension benefits being transferred under the terms of a Pension transfer agreement (PTA). The factors can include mortality, interest, indexation, withdrawal, disability and retirement rates, rate of salary and earning increases, proportion of contributors married at death and the age difference between the spouse and plan member.
Actuarial value
A pension value based on a set of actuarial assumptions.
Deferred annuity (DA)
A retirement benefit under the Public Service Superannuation Act (PSSA) that becomes payable at age 60.
Demographic assumptions
r disability benefit being paid to you, or on your behalf.
Economic assumptions
Include the "real rate of return" (the difference between the gross interest rate and the rate of inflation) that the amount transferred could be expected to earn.
Employer transfer amount
An actuarial value calculated by an outside employer's plan actuary in accordance with the terms of the Pension transfer agreement (PTA). It is the amount required under the outside employer's plan to fund the period of service being transferred. This applies to both transfers in or out of the PSSA.
Federal transfer amount (Defined benefit)
An actuarial value calculated by the Minister's actuary in accordance with the terms of the Pension transfer agreement (PTA). It is the amount required under the Public Service Superannuation Act (PSSA) to fund the period of service being transferred. This applies to both transfers in or out of the PSSA.
Federal transfer amount (Defined contribution)
An amount equal to the Transfer Value as defined in the Public Service Superannuation Act (PSSA) up to the prescribed limits set under the Income Tax Act.
Government of Canada pension centre
The primary office responsible for the administration of the pension plan for federal public service employees. It is a sector of Public Services and Procurement Canada (PSPC).
Office of the superintendent of financial institutions (OSFI)
Organization that regulates federal financial institutions and pension funds. The OSFI provides the actuarial services for the Government of Canada.
Past service pension adjustment (PSPA)
The PSPA is the value of the benefit accrued for a period of post-1989 elective service. The PSPA is not related to the cost of past service; it is the pension value assigned to that service and is used to reduce an employee's Registered Retirement Savings Plan (RRSP) "room" for the year that the PSPA is approved by the Canada Revenue Agency (CRA).
Pension indexing
Provides for annual increases, based on the full consumer price index, on pensions payable out of the Public Service Superannuation Act (PSSA) to offset the cost of living.
Pension portability
A means to transfer pension credits from one pension plan to another.
Pension transfer agreement (PTA)
An agreement between the Government of Canada and an outside employer. It is a mechanism used to facilitate mobility between employers by transferring the actuarial value of an eligible employee's accrued pension credits.
Pensionable employment (PE)
Any employment outside the federal public service for which there is an established superannuation or pension fund/plan approved for Public Service Superannuation Act (PSSA) purposes.
Pensionable service credit
Service to the credit of a plan member under a registered pension plan.
Public Service Superannuation Act (PSSA)
The Act that provides pensions for federal public service employees.
Reciprocal transfer agreement (RTA)
An agreement between the Government of Canada and an outside employer. It was a mechanism used in the past to facilitate mobility between employers.
Service buyback
Purchase of prior pensionable service that a contributor may count as pensionable, at his option, subject to certain conditions.
Transfer value (TV)
A transfer value is a lump sum amount representing the present value of a contributor's future pension entitlement.
Transfer value guarantee
The minimum transfer value guaranteed to be paid, on behalf of an eligible employee, when transferring out under the terms of a Pension transfer agreement (PTA), regardless of whether the individual would have otherwise been entitled to a transfer value benefit under the Public Service Superannuation Act (PSSA).
Treasury Board of Canada, Secretariat (TBS)
The administrative arm of the Treasury Board. The TBS provides advice and support to the Treasury Board. The President of the Treasury Board is the minister responsible for the Public Service Superannuation Act (PSSA), including financial management of the Public Service Superannuation Account and the Public Service Pension Fund.
Date modified: