New to the Canadian Armed Forces—Reservists in the Regular Force Pension Plan

The Canadian Armed Forces (CAF) Pension Plans provide you, as a member, with peace of mind today and for years to come.

The CAF Plan Enrolment Information Package is available for new or re-enrolled members and will be mailed to you by the Government of Canada Pension Centre. Some aspects of the plan are time-sensitive, so it's suggested that you review this document as soon as possible.

As a contributor under the Regular Force Pension Plan, you accumulate both pensionable service and Canadian Forces (CF) service. Combined, they determine your benefit eligibility under the Regular Force Pension Plan.

Pensionable service determines the type and the amount of the benefit. While a given period of service may or may not be pensionable, only paid days of service are considered CF service.

CF service is used to determine when you join the Regular Force Pension Plan and if you are eligible for an unreduced pension at release.

Pension credits transferred from other plans (Public Service and Royal Canadian Mounted Police) to the Regular Force Pension Plan increase your pensionable service, but not your CF service.

Listed below are some common questions and answers that may be of interest to you as a member of the CAF.

You may want to know

When do I join the plan?

Reserve Force members automatically join the Regular Force Pension Plan once they accumulate 1,674 days (55 months) of Canadian Forces (CF) service within a period of 60 consecutive months. Usually, you first join the Reserve Force Pension Plan when you have met the criteria to join that plan and then the Regular Force Pension Plan.

Service since 1 April 1999, counts towards determining if you have met the criteria for joining the Regular Force Pension Plan.

Once you join the Regular Force Pension Plan, you remain in that plan – even if you no longer serve full-time – until you:

  • release or retire from the Reserve or Regular Force, or die or
  • do not have any Reserve Force earnings for 12 months

Generally, only Reserve Force long-term Class "B" and Class "C" members qualify for the Regular Force Pension Plan.

Do I have to join the plan?

Yes. Once you meet the criteria, you must join the plan. Pension contributions will start to be deducted from your pay automatically when you join.

How do I know when I join the plan?

The Government of Canada Pension Centre will monitor your service and earnings and the Plan Enrolment Package will be mailed to you using the address we have on file. This package includes a letter with the Web address for the "Welcome to the Regular Force Pension Plan" orientation information kit, the Enrolment Information and "Acknowledgement of Plan Membership" (CF-FC 571-PF) form, as well as the "Notification of Plan Membership" (CF-FC 2018-PF) form. Pension contributions for the Regular Force Pension Plan will start being deducted from your pay when you join.

If you believe you have met the criteria to join and have not received a letter, contact the Government of Canada Pension Centre.

How are the Canadian Armed Forces pension plans governed?

The Canadian Armed Forces (CAF) pension plans are legislated pension plans. The provisions of the pension plans are set out in the Canadian Forces Superannuation Act (CFSA), the Canadian Forces Superannuation Regulations (CFSR), and the Reserve Force Pension Plan Regulations (RFPPR).

What happens to my pension if I was a member of the Reserve Force Pension Plan and now have qualified for the Regular Force Pension Plan?

Your service under the Reserve Force Pension Plan, including any service you bought back, will be automatically transferred to – and recognized under – the Regular Force Pension Plan. If you are paying for a buy-back in monthly instalments, you will continue paying them under the Regular Force Pension Plan.

The contribution rate under the Reserve Force Pension Plan is lower than the rates under the Regular Force Pension Plan. While you were a member of the Reserve Force Pension Plan, you contributed at a lower rate and, if you bought back previous Reserve or Regular Force service while you were a member of the Reserve Force Pension Plan, the cost was based on the lower contribution rates. As you paid lower contributions for this service, it will not provide full credit under the Regular Force Pension Plan.

You can choose to "top-up" your contributions to provide full credit under the Regular Force Pension Plan. "Topping up" means paying the difference in the contribution rates between the two pension plans for those periods of service.

You have a strict deadline to decide to top-up. When you join the pension plan, the Government of Canada Pension Centre sends you a letter indicating you are eligible to top-up. You must choose to top-up within one year after the date of the letter from the Government of Canada Pension Centre.

Please note that the Government of Canada Pension Centre will not send out a letter advising that the deadline has been missed.

What if I have previous service with the Reserve Force that I have not yet bought back?

If you have not already carefully considered whether or not to buy back your previous service, you should carefully consider it now. You have a strict deadline to buy back this previous service.

If you have previous service with the Reserve Force, please refer to the "Increasing your PensionReserve Force" Life Event.

What happens if I previously was a member of the Reserve Force Pension Plan and I rejoin the Reserve Force or again have earnings in the Reserve Force?

It depends on the pension benefit you received when you left the Reserve Force Pension Plan. Please refer to the "Re-enrolling after Retirement" Life Event for more information.

What happens if I previously served in the Regular Force and I join the Reserve Force?

It depends on the pension benefit you received when you left the Regular Force. Please refer to the "Re-enrolling after Retirement" Life Event for more information.

What happens if I previously was a Reserve Force member in the Regular Force Pension Plan and I rejoin the Reserve Force or have earnings again in the Reserve Force?

It depends on the pension benefit you received when you left the Regular Force Pension Plan. Please refer to the "Re-enrolling after Retirement" Life Event for more information.

Does my previous service with the Regular Force, the Federal Public Service, the Royal Canadian Mounted Police or Her Majesty's Forces (other than Canada) affect my pension?

You may be able to increase your pension by adding to it your previous service with:

For more information on how to do that, please refer to the "Increasing your Pension" Life Event.

I am receiving a pension based on my Regular Force service. What will happen to my pension if I join the Reserve Force?

You can continue or stop receiving your pension while you are in the Reserve Force. The choice is yours.

Continue your pension

Your pension will continue to be paid as before. You will not accumulate new pensionable service. However, if you are employed for one year or more on a full-time basis in the Reserve Force, your pension will stop and you will rejoin the Regular Force Pension Plan, which means you start contributing and earning pensionable service. When you release at a future date and start your pension again, you may receive a greater amount because your total pensionable service will be higher. If you wish to buy back any Reserve Force service that occurred while you were receiving a pension, you have to first pay back the pension that you received for that period.

Stop receiving your pension at any time

If you voluntarily join the plan, your pension will stop, and you will immediately start contributing and earning pensionable service under the Regular Force Pension Plan. When you release at a future date and start your pension again, you may receive a greater amount because your total pensionable service will be higher. If you wish to buy back any Reserve Force service that occurred while you were receiving a pension, you will have to first pay back the pension that you received for that period.

After rejoining the Regular Force Pension Plan

If you rejoin the Regular Force Pension Plan under these circumstances, you must contribute to the plan as long as you have earnings.

If you leave the Canadian Armed Forces (CAF) again, and start to collect your pension once more and then later rejoin the Reserve Force, your pension will stop and you will contribute to the Regular Force Pension Plan again. You will no longer have the option to collect your pension and to not contribute to the plan as a Reserve Force member.

How much do I contribute?

You contribute a percentage of your pensionable earnings.

The following table shows the rates of contribution for the years 2009 to 2017:

Pensionable Earnings… You contribute in…
2009 2010 2011 2012 2013 2014 2015 2016 2017
up to the Year's Maximum Pensionable Earnings (YMPE) 5.2% 5.5% 5.8% 6.2% 6.85% 7.5% 8.15% 9.05% 9.47%
up to the Year's Maximum Pensionable Earnings (YMPE) 8.4% 8.4% 8.4% 8.6% 9.2% 9.8% 10.4% 11.04% 11.68%

Once you have 35 years of pensionable service, your contributions are reduced to 1% of pensionable earnings.

Example 1

In 2009, Joseph is a Warrant Officer with pensionable earnings of $69,600. The YMPE for 2009 is $46,300. His Regular Force Pension Plan contributions will be calculated as follows.

Contributions Calculations
On pensionable earnings up to the YMPE 5.2% x $46,300 = $2,408
On pensionable earnings above the YMPE 8.4% x ($69,600 - $46,300) = $1,957
Total annual contributions for 2009 $2,408 + $1,957 = $4,365
Average contributions per pay $4,365 ÷ 24 = $182

If Joseph reaches 35 years of pensionable service in 2009, his contributions per pay would reduce to $29, that is, 1% of pensionable earnings (1% x $69,600 ÷ 24 = $29).

Example 2

In 2009, Marie is a Major with pensionable earnings of $104,352. The YMPE for 2009 is $46,300. Her Regular Force Pension Plan contributions will be calculated as follows.

Contributions Calculations
On pensionable earnings up to the YMPE 5.2% x $46,300 = $2,408
On pensionable earnings above the YMPE 8.4% x ($104,352 - $46,300) = $4,876
Total annual contributions for 2009 $2,408 + $4,876 = $7,284
Average contributions per pay $7,284 ÷ 24 = $304

If Marie reaches 35 years of pensionable service in 2009, her contributions per pay would reduce to $43, that is, 1% of pensionable earnings (1% x $104,352 ÷ 24 = $43).

Why are contributions increasing?

In 1999, the Federal Government introduced measures to improve the long-term financial management of the three large federal public sector pension plans – the Canadian Armed Forces, the Federal Public Service and the Royal Canadian Mounted Police. These measures will ensure that the costs of these pension plans are shared in a more balanced way between plan members and the Canadian public, whose tax dollars support these programs.

Why do I contribute a different percentage of my pay under the Year's Maximum Pensionable Earnings and above the Year's Maximum Pensionable Earnings?

Most employer-sponsored defined benefit pension plans adopt this two-tiered contribution approach to take into account contributions to the Canada Pension Plan (CPP).

Here's why:

As with all Canadian workers and employers, both you and the Federal Government contribute to the Canada Pension Plan (CPP). Your contributions to that plan are based on your pay up to an annual limit known as the Year's Maximum Pensionable Earnings (YMPE). In turn, your CPP pension is based on the earnings on which you contributed. There are no contributions made, or benefits earned, under CPP above the YMPE. Your Regular Force Pension Plan requires lower contributions on earnings for which you also contribute to CPP (that is, below the YMPE).

Are my pension contributions tax-deductible?

Yes. And, your income tax is reduced automatically on your pay for your current year contributions. In other words, you receive your tax deduction for your pension contributions right away, instead of waiting until your next year's income tax return is filed.

Is my personal Registered Retirement Savings Plan contribution limit affected by my participation in the Regular Force Pension Plan?

Yes. Your annual Registered Retirement Savings Plan (RRSP) contribution limit is reduced by the estimated value of the pension you earned in the previous year. This value is called the pension adjustment.

What is the Supplementary Death Benefit, and who can I designate as my beneficiary?

The Supplementary Death Benefit (SDB) plan provides a form of decreasing term life insurance protection, which is designed to provide insurance coverage to Regular Force members and members of the Reserve Force on Class "C" service.

You may choose one of the following as your beneficiary:

  • any one person 18 or more years of age at the time of designation
  • your estate
  • any charitable or benevolent organization or institution
  • any educational or religious organization or institution that is supported by donations

To designate your beneficiary, you must complete the Naming or Substitution of a Beneficiary (CF-FC 2196) form.

For detailed information about the SDB, please visit the Supplementary Death Benefit (SDB) plan page.

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