Benefits for retired members: Plan members on or before December 31, 2012

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Introduction

This booklet is your guide to the pension and other benefits payable to you and your dependants under the Public Service Superannuation Act (PSSA). Inside are details about your pension cheque, the coordination of benefits with the Canada and Quebec Pension Plans, annual increases payable to help offset increases in the cost of living, the effect of re-employment on your pension, and other important pension subjects. Please read the booklet carefully and keep it with your personal papers. You can record your pension data on the inside cover.

You and your family can turn to the Government of Canada Pension Centre (Pension Centre) for help with your questions relating to pension and insurance benefits. Section 1: Government of Canada Pension Centre—Contact information, describes how and where you can direct your inquiries.

This booklet is a general information guide, which contains important information. In the event of a discrepancy between the pertinent legislation and this guide, the legislation shall prevail.

Glossary

Average salary

Total salary received, or deemed to have been received, during the highest five consecutive years divided by five. Any salary revisions and lump sum payments which apply to periods of service during your best five year period are also included. Please note that overtime and certain other allowances are not considered as part of your salary for pension purposes. Normally, the average salary period is your last five years of employment. For retirements prior to June 17, 1999, the average salary is calculated over a six-year period.

Average maximum pensionable earnings (AMPE)

A five-year average calculated using

  • the year's maximum pensionable earnings (YMPE) under the Canada Pension Plan (CPP) for the year of your retirement from the public service or the year in which your CPP or Quebec Pension Plan (QPP) regular retirement pension commences, whichever is earlier, and
  • the YMPE for the four preceding years

Prior to June 17, 1999, the AMPE was calculated over a three-year period.

Example:

The AMPE for someone retiring in 2004 is $39,080. This is the average of the YMPE for 2004, $40,500, and the YMPE for the four preceding years; [$39,900 (2003), $39,100 (2002), $38,300 (2001), $37,600 (2000)].

$195,400 (total YMPE) ÷ 5 = $39,080 (AMPE)

Bridge benefit

A temporary amount payable from the date your pension begins until age 65 or when CPP or QPP disability benefits begin, whichever occurs first.

Child

A natural child, a stepchild, or an adopted child who at the time of death was dependent on the plan member for support.

Date of retirement

The date on which the plan member most recently ceased to be employed, which is normally the day following the last day for which the plan member received salary. If the plan member was on leave without pay, the retirement date is the date specified by the plan member or the date notification of the retirement from the employing department is received by the Pension Centre, whichever is later.

Disabled/disability

Occurs when a plan member becomes permanently unable to pursue any substantially gainful occupation prior to age 60. All disability cases must be confirmed by Health Canada.

Garnishment, Attachment and Pension Diversion Act

An Act to provide for the diversion of pension benefits payable under various Acts, including the Public Service Superannuation Act, to satisfy or partially satisfy an obligation to pay maintenance or support to a spouse, child or other dependant.

Immediate pension

For purposes of Supplementary Death Benefit coverage, a pension that is payable immediately upon retirement or within 30 days after retirement.

Independent contractor

A person who contracts to perform work or supply service at a fixed fee over a specific period of time. Service as an independent contractor does not normally qualify as pensionable service.

Lifetime pension

The permanent portion of your pension payable from the date your pension begins until your death.

Pensionable service

The total period of service from the date you started contributing under the Public Service Superannuation Act to the date of retirement. This includes any prior service that you have purchased (for which you are still making payments), and service credited by a transfer from another plan. It does not include periods of strike, suspension, unauthorized leave, leave without pay that you chose not to count as pensionable service, or any other periods during which you were not required to contribute to the plan. The maximum period of pensionable service, including other pensionable service in the federal public sector such as Canadian Forces (CF) or Royal Canadian Mounted Police (RCMP) service, is 35 years.

Pension Benefits Division Act

An Act to provide for the division of pension benefits payable under the Public Service Superannuation Act (and various other federal statutes) after the breakdown of a marriage or a conjugal relationship. An application for division may be submitted if an agreement or court order states that the plan member's pension is to be divided.

Public Service Superannuation Act (PSSA)

An Act to provide pension benefits to eligible federal public servants and their dependants.

Retirement

(see "Date of retirement")

Retirement Compensation Arrangement (RCA)

A plan which provides benefits that exceed the allowable limits for a registered pension plan under the Income Tax Act.

Return of contributions

Return of the total monies paid under the Public Service Superannuation Act by the plan member together with interest compounded quarterly.

Survivor

The plan member's legal spouse, including a spouse who was separated but not divorced from the plan member at the time of his death. A survivor can also be a person who had been living with the plan member in a conjugal relationship as a common-law partner since before the plan member's retirement and for at least one year prior to his death.

Your pension data

(Image description is provided below) This picture is part of the electronic booklet that you can use to write down personal pension information.

Image description

An image describing Your Pension Data From top to bottom on the image - Pension Number, Effective Date of Pension, Pensionable Service, Years and Days, Average Salary, Total Monthly Pension Amount, Lifetime Pension, Bridge Benefit, Indexation (Cost of Living Pension Increases) including the Year, Percentage and New Monthly Pension Amount. This image is part of the electronic booklet related to pension, this is not an official document. It is a printable image, the goal is to inform retired members about their pension within the public service.

Survivor's pension data

(Image description is located below) This picture is part of the electronic booklet that can be used to provide more in depth personal pension information for members.

Image description

An image describing Survivor's Pension Data From top to bottom on the image - Pension Number, Effective Date of Pension, Plan Member's Pensionable Service, Years and Days, Plan Member's Average Salary, Monthly Pension Amount, Children's Allowances, Indexation (Cost of Living Pension Increases), Year, Percentage and New Monthly Pension Amount. This image is part of the electronic booklet related to pension, it is not an official document. It is a printable image, the goal is to inform retired members about their pension within the public service.

Section 1: Government of Canada Pension Centre—Contact information

The Pension Centre can be reached by telephone, facsimile, or mail. All pension related inquiries, including those related to the Public Service Health Care Plan and the Pensioners' Dental Services Plan, should be referred to the Pension Centre (See Section 9 for information concerning the Public Service Health Care Plan and Section 10 for information concerning the Pensioners' Dental Service Plan.)

There are several ways of communicating with us. Consult our Contact us - Government of Canada Pension Centre page for further information.

When contacting the Pension Centre, always include your:

It is important that you keep us informed of your current address. If you cannot be located, your pension may be temporarily suspended or you may not receive important information that is sent to pensioners from time to time. When moving, you may notify us in writing. Make sure you sign your change of address letter or post card and forward it to us before the first of the month for which you want us to make the change. You can also telephone us with the information.

If you move to another province or another country, please contact the Pension Centre since the change may affect your medical insurance coverage and income tax.

To help us address your inquiry quickly, please include your pension number in all correspondence. In some instances we may be able to reply by telephone if you provide your telephone number.

Confidentiality of information

All information contained in our files is protected under the Privacy Act and may only be discussed with the person receiving the benefits. If you wish us to provide information to someone else, prior written consent from you is required.

Section 2: Important documents

In the event of your death, we need complete up-to-date records, to determine the benefits to which your dependants or estate may be entitled (see Section 12). If you have not already submitted the following documents to the Pension Centre, please forward them to us as soon as possible:

Photocopies are acceptable and each document should be identified with your pension number.

If you submit original documents, they will be returned upon your request.

If you are currently widowed, separated, or divorced, let us know, as this may affect benefits payable in the event of your death. We should be kept informed of any subsequent change in your marital status.

Payment of survivor benefits may be made to a common-law partner. To determine eligibility, evidence must be presented by the claimant demonstrating he had been living with the plan member in a conjugal relationship since before retirement and for a minimum of one year. If the plan member has provided information in this regard to the Pension Centre from time to time, it will be easier to establish eligibility (see Section 12).

If you get married after your retirement, you should submit a copy of your marriage certificate to the Pension Centre. You are eligible to choose within one year from the date of your marriage, or from the date your pension commences, whichever is later, to provide survivor benefit coverage for your spouse (see Section 12).

Section 3: Your pension cheque

Your pension is payable in monthly installments. If you are receiving a cheque by mail, you should receive it by the third last day of each month. However, due to irregularities in the mailing date or mail delivery, you may find that your cheques do not always arrive on the same day each month. These cheques are negotiable on the date shown on the cheque.

Most pensioners now receive their pension by means of Direct Funds Transfer (DFT), which allows you to have your pension electronically deposited to your bank account. It is a secure and dependable alternative to receiving a cheque by regular mail. If you are currently receiving a cheque by mail and wish to enroll for DFT, simply send us a void cheque with your signed letter authoring us to deposit your pension in accordance with the information on the cheque. Please include your pension number on both your letter and the void cheque. Your monthly pension should be deposited to your bank account by the third last banking day of the month.

Lost or stolen cheques

If your cheque is lost or stolen, contact the Pension Centre immediately (see Section 1). A signed cheque is the equivalent of cash and could be negotiated by anyone. You should therefore sign your cheque only when you arrive at the bank. Your cheque may be deposited directly to your bank account if you prefer. To obtain details and the necessary forms, please contact the Pension Centre.

Deductions from your pension cheque

You can ensure that the proper deductions are being made by reviewing your DFT statement or the stub attached to your cheque. This shows your gross monthly pension and the amounts being deducted. The number shown in the illustration below is your pension number. You will receive a DFT statement or cheque stub each January and in any month in which your net pension changes by more than two dollars.

(Image description is located below) This is a screenshot of a pension cheque with a red circle surrounding the pension number.

Image description

An image displaying the location of the pension number on your pension check. The circle in this screenshot is your pension number from your monthly pension check. The goal of this screenshot is to better understand your deductions from your pension check.

Incapable or unable to manage own affairs

If you have granted someone a Power of Attorney, you must supply a certified copy of this document to the Pension Centre if you want that person to manage some of your pension affairs including an address change and requests for information. Should you become incapable of managing your affairs, someone can be designated as your payee either by a Court judgment or a designation as a payee under the Public Service Superannuation Act. Additional information regarding these matters can be obtained from the Pension Centre (see Section 1).

Diversion of pension benefits

Normally, no portion of your pension can be diverted to a third party. However, in accordance with the Garnishment, Attachment and Pension Diversion Act, an amount may be deducted for the support of a spouse, former spouse, child or other dependant if a court order to that effect has been issued by a court in Canada. You will be notified and have an opportunity to respond if an application for diversion is received. Amounts may also be withheld from your pension to satisfy a debt due to the Crown, such as income tax arrears.

Division of pension benefits

Under the Pension Benefits Division Act, your pension can be divided following the breakdown of a marriage or a conjugal relationship. Your pension can be divided up to a maximum of 50 percent upon receipt of a formal application for pension benefits division by you or your spouse, former spouse, or former partner. A division will occur only if a court order or agreement exists that provides for division of the pension benefits. You will be notified if an application is received and you will have an opportunity to object if there are valid reasons to oppose the division. A spouse or partner, former spouse or former partner can also apply to receive an estimate of the value of the benefits that would be subject to division under the Act. Please contact the Pension Centre (see Section 1) for more details.

Taxation

You should retain any cheque stubs or DFT statements that you receive so that you can verify the information on your income tax statement (T4A, Relevé 1, Relevé 2 or Non-Residents [NR] 4) that will be forwarded to you annually. If you are receiving benefits from the Retirement Compensation Arrangement (RCA) you will also receive a T4A-RCA statement.

If you wish to increase the amount of income tax deducted from your pension, you may write or call the Pension Centre (see Section 1) specifying the additional amount to be deducted.

If you intend to reside outside Canada, you may obtain information about your tax situation from the pamphlet Non-Residents and Income Tax, available from the Canada Revenue Agency.

Section 4: Coordination of benefits with the Canada and Quebec Pension Plans

When the Canada Pension Plan (CPP) and Quebec Pension Plan (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 65th 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 65th 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 65th 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 65th 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 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.

Applicable bridge benefit factors
Your year of birth Year you reach age 65 Bridge benefit factor
1942 or earlier 2007 or earlier 0.700%
1943 2008 0.685%
1944 2009 0.670%
1945 2010 0.655%
1946 2011 0.640%
1947 or later 2012 or later 0.625%

Section 5 shows how the bridge benefit portion of your pension is calculated.

Section 5: Calculating your pension

If you retired before age 65, you will receive a monthly pension which includes:

If you retired after age 65, you will only receive the lifetime pension; the bridge benefit will not be paid.

The following explains how your public service pension is calculated:

Lifetime pension

The formula for calculating the lifetime pension is as follows:

2% minus the bridge benefit factor (see chart in section 4) × Number of years of pensionable service × average salary up to the Average Maximum Pensionable Earnings

plus

2% × Number of years of pensionable service × Average salary over the AMPE

Example: a plan member retiring in 2010 at age 60 with 25 years of pensionable service, an average salary of $46,000 and reaching age 65 in 2015. The monthly lifetime pension would be calculated as follows:

1.375% × 25 years × $44,840.00 (2010 AMPE) = $15,413.75 ÷ 12 = $1,284.48 per month

plus

2% × 25 years × $1,160.00 ($46,000 minus $44,840) = $580.00 ÷ 12 = $48.33 per month

The total monthly lifetime pension would be $1,332.81 per month ($1,284.48 + $48.33).

Bridge benefit

The formula for calculating the bridge benefit is as follows:

Applicable bridge benefit factor (see chart in section 4) × Number of Years of pensionable service since January 1, 1966 × The lower of:

  1. the Average Maximum Pensionable Earnings under the CPP/QPP, and
  2. the average salary used to calculate your lifetime pension

Example: a plan member retiring in 2010 at age 60 with 25 years of pensionable service, an average salary of $46,000 and reaching age 65 in 2015. The monthly bridge benefit would be calculated as follows:

0.625% (bridge benefit factor for 2012 or later) × 25 years × $44,840.00 (2010 AMPE) = $7,006.25 ÷ 12 = $583.85 per month

The total monthly bridge benefit would be $583.85.

Until you reach age 65 or until you start receiving disability benefits from the CPP or QPP, you would receive a total pension of $1,916.66 per month (lifetime pension of $1,332.81 + bridge benefit of $583.85). As soon as you reach age 65 or you start receiving a disability benefit from the CPP or QPP, the bridge benefit portion stops and you only receive your lifetime pension ($1,332.81).

For periods of part-time pensionable service, the calculation is adjusted based on the assigned hours compared to the full-time hours of the position. For example, if an employee contributes to the plan based on a 20-hour work week and the equivalent full-time position is 40 hours, the pension would be reduced by one half for that period.

If you were subject to a pension benefit division under the Pension Benefits Division Act, your pension will be adjusted to take into account the funds that were transferred to your spouse, former spouse, or former partner.

Note

The maximum period of pensionable service is 35 years and the average salary is calculated over the best five consecutive years. If you retired before June 17, 1999, the average salary is calculated over a six-year period.

Immediate annuity, deferred annuity and annual allowance

The normal retirement age under the public service pension plan is age 60. If you retired at age 60 with at least two years of pensionable service, you were entitled to an immediate annuity. An immediate annuity is also payable to plan members who retired:

The immediate annuity is calculated the same way as explained above.

If you retired before the normal retirement age and chose to wait until age 60 to receive your pension, this is called a deferred annuity. It is calculated the same way as the immediate annuity. The only difference is that you wait until age 60 to receive your pension.

You can request immediate payment of your deferred annuity at any time between the ages of 50 and 60. In this case, the pension will be reduced because you are going to receive it over a longer period of time than if you were to wait until it became payable at age 60. A pension benefit with this reduction is called an annual allowance.

The Pension calculation chart in this booklet expresses your pension as a percentage of the average salary, payable at a given age and years of pensionable service. For example, a person who resigns at age 50 with 25 years of pensionable service and an average salary of $36,000 can choose a deferred annuity payable at age 60 or an annual allowance at an earlier date.

To determine a pension payable at age 60, read down to the age (60) and across to the years of pensionable service (25). The monthly pension, expressed as a percentage of the average salary would be 50 percent, or:

(50% × $36,000) ÷ 12 months = $1,500 per month

If payment is requested at an earlier age, 58 for example, the annual allowance, according to the chart, would be 45 percent of the average salary, or:

(45% × $36,000) ÷ 12 months = $1,350 per month

Note

The shaded area on the chart does not apply to those plan members who retire prior to age 50 and who choose an annual allowance. If you are in this situation, the reduction is 5 percent for each year (to the nearest one tenth) that you are less than age 60 on the date the pension becomes payable.

Operational service

Pension eligibility differs for employees of the Correctional Service Canada engaged in operational service. Please contact the Pension Centre (see Section 1) if you require additional information.

Section 6: Indexation (cost of living pension increases)

Under Part III of the Public Service Superannuation Act, all public service pension recipients get automatic annual pension increases every January 1 to help offset increases in the cost of living. These pension increases are added to the monthly amount paid in the previous year, which, after your first year of retirement, will include your pension and all previous increases, not just your pension at retirement. Any increase you are entitled to would be included in your monthly pension cheque for the January following your date of retirement. Any further increases would be payable on January 1 of following years.

The first indexing adjustment after retirement is pro-rated to take into account only the number of full calendar months for the balance of the year, as illustrated in the following example:

Retirement date: November 16

Number of full months after retirement date and before January 1 of the year following the year of retirement: one month

Indexation payable: 1/12 of the full increase authorized for January 1.

Further pension increases will become payable each January 1 thereafter and will be equal to the full increase authorized for each year.

In the case of a deferred pension which commences after the year of retirement, indexation will be added as soon as your pension becomes payable. The amount will be based on the increase in the cost of living from the date you ceased to be employed to January 1 of the year in which your pension commences. The next January and each year thereafter, you will receive the full increase authorized for that year.

As indexation is directly related to the amount of pension payable, any changes to your pension results in a corresponding adjustment in your pension increase. As indicated in Section 4, the indexing amount payable will be lower when the bridge benefit stops. For example:

Indexing on lifetime pension + bridge benefit

Lifetime pension - $1,500.00 + Bridge benefit - $500.00 + 10% indexing - $200.00 = $2,200.00 monthly pension

Indexing on lifetime pension only

Lifetime pension - $1,500.00 + 10% indexing - $150.00 = $1,650.00 monthly pension

Re-employment could alter your entitlement to indexation. Section 8 has further details on this point.

Section 7: Disability pensions

If you retired because of a disabled/disability, and Health Canada confirmed that you were permanently disabled at retirement, you were entitled to a disability pension which is an unreduced pension payable immediately.

Your disabled/disability pension will be suspended if, prior to age 60, you regain your health or become capable of assuming your former duties or other duties in keeping with your qualifications. In such a case, your disability pension will be replaced with an entitlement to a deferred annuity payable when you reach age 60. You may, however, request payment of an annual allowance (a reduced pension) in lieu of a deferred annuity. An annual allowance is payable from the date on which the request for that benefit is made or from the date you reach age 50, whichever is later.

You may be eligible for a disability pension if you have chosen a pension that will be payable at age 60 (deferred annuity) and you become disabled/disability before that time. If you are receiving an annual allowance and you become disabled before age 60, the amount of your pension will be increased. However, any benefits already received will be taken into consideration.

Should you become disabled/disability after retirement, a medical examination will be required to establish your entitlement to a disability pension. Health Canada has to confirm that you are permanently disabled.

Please contact the Pension Centre (see Section 1) for more information.

Section 8: Re-employment

You may rejoin the federal public service with no effect on your pension benefits if you do not become eligible to contribute under the Public Service Superannuation Act. However, if you again become eligible to contribute under the Act, your pension payments will be suspended.

If you become a part-time employee in the public service, and you are assigned to work an average of 12 hours or more per week, you will automatically begin to contribute under the Act (providing all other eligibility criteria are met).

If you are age 71 or over when you become re-employed in the public service, your pension will be suspended if you meet the eligibility criteria to become a contributor under the Act. Your pension will be suspended even if you cannot actually contribute because of the tax rule preventing anyone age 71 or over from contributing to any pension plan.

If you voluntarily retire prior to age 60 after being re-employed as a contributor for a period of less than two years, the additional service cannot be used in the calculation of your pension. In such a case, the contributions paid during the period of re-employment will be refunded with interest.

You should note that if you become eligible to contribute again, your pension entitlement may be negatively affected in several ways. First, your date of retirement automatically changes and thus you lose any annual indexation (cost-of-living increases) you may have accumulated under Part-III of the Act. In addition, if you were receiving an annual allowance previously, when you cease to be re-employed, your pension will be reduced in relation to the length of time that you received the annual allowance. The amount of the reduction will not exceed the total amount that you received as an annual allowance before you became re-employed. Finally, if you had qualified for a waiver of the early retirement reduction and you become eligible to contribute again, you will not be entitled to a waiver of the reduction when your re-employment ceases unless you qualify again based on the circumstances at that time.

Employment as an independent contractor is not normally considered re-employment for pension purposes. Employment outside the federal public service will not affect your pension, provided you have not retired on grounds of disabled/disability.

Due to the potential impact on your pension, it is vital that you contact the Pension Centre before becoming re-employed in the federal public service, or if you have retired on grounds of disability, before accepting outside employment. You should ensure that you understand how your re-employment will affect your pension entitlement. Re-employment may also affect your coverage under the Supplementary Death Benefit Plan, the Public Service Health Care Plan and the Pensioners' Dental Services Plan.

Section 9: Public Service Health Care Plan

Most retired public servants and their dependants can participate in the Public Service Health Care Plan (PSHCP). Where there are provincial medicare plans, the Plan is supplementary, providing coverage for drugs and other miscellaneous expenses. For pensioners and their dependants residing outside Canada who are not covered under a provincial or territorial health insurance plan, the Plan provides comprehensive coverage for medical and surgical expenses. Both the Supplementary and Comprehensive plans cover eligible expenses, subject to certain limitations.

If you become re-employed in the federal public service and your pension is suspended (see Section 8), you must re-apply as an employee in order to maintain coverage under this Plan. Your compensation advisor will provide you with information and the application form.

If there are changes in your marital status or to the number of your eligible dependants, you should report them immediately to us. Changes requiring notification are outlined in the PSHCP booklet.

Please note that if you or any of your insured dependants take up permanent residence outside Canada, you must ensure that you have applied for Comprehensive coverage. If you have any questions related to whether Comprehensive coverage is required, please consult the booklet or contact the Pension Centre (see Section 1).

When inquiring about the Public Service Health Care Plan, please provide your pension and PSHCP numbers to assist us in handling your request.

If you wish to consult the Plan document on line, you can visit the Public Service Health Care Plan Trust website.

To find out about the latest PSHCP contribution rates for pensioners, visit the Pension and benefits website. Once there select Public service group insurance benefit plans, then Public Service Health Care Plan. On that page you will find a link to the Public Service Dental Care Plan contribution rates.

Section 10: Pensioners' Dental Services Plan

If you were covered under the Public Service Dental Care Plan as an employee, that coverage ceases immediately when you retire. As a retired member, you may be eligible for coverage under the Pensioners' Dental Services Plan (PDSP).

The PDSP offers coverage to eligible persons who receive a public service pension as a result of having retired from a federal department or certain participating organizations. It covers specific dental services and supplies that are not covered under a provincial or territorial health or dental care plan. As well, the PDSP covers only reasonable and customary dental treatment necessary to prevent or correct a dental disease or defects if the treatment is consistent with generally accepted dental practices.

To have immediate coverage, you must enroll within 60 days from the date of your pension entitlement. Otherwise, coverage will be effective on the first day of the second month following the date the application is received at the Pension Centre.

You are not eligible for coverage if you were affected by divestiture or withdrawal regulations (due to a transfer or sale of an entity or withdrawal of an organization as a participating employer under the Public Service Superannuation Act).

Please note that the PDSP is administered by a different insurance company than the dental plan you were participating in as an employee. Premiums can only be deducted for the PDSP once the Pension Centre has received and approved your application for coverage and your pension commences. It is therefore recommended that you wait until you receive your new certificate number before you make any claims for dental benefits. Coverage will be effective as of your date of retirement if your dental application was received within 60 days of your retirement as mentioned above.

If there are changes to your marital status or to the number of your eligible dependants, you should report them immediately to us.

You can voluntarily withdraw from the PDSP after a specific minimum time period and under certain limited circumstances. The cancellation of your coverage is irrevocable. For more information, please contact the Pension Centre (see Section 1) or consult the Public Service Pensioners' Dental Services Plan booklet or the plan rules.

To find out about the latest PDSP contribution rates for pensioners, visit the Pension and benefits website. Once there select Public service group insurance benefit plans, then Public Service Dental Care Plan section. On that page you will find a link to the Public Service Dental Care Plan contribution rates.

Section 11: Supplementary Death Benefit

The Supplementary Death Benefit (SDB) is similar to a decreasing term life insurance. Contributors to the pension plan, with the exception of employees of certain Public Service Corporations, participate in the SDB Plan. Most SDB participants are eligible to continue coverage after ceasing to be employed. There is no requirement to pass a medical fitness test to continue SDB coverage.

Participants entitled to an immediate pension

This subsection is for pensioners participating in the SDB Plan who, at retirement, were entitled to an immediate pension, including individuals who became entitled to a pension within 30 days after retirement.

Your full death benefit coverage automatically continues if you have been employed in the public service without interruption for two years, or have been a participant in the SDB Plan for two years. No action on your part is required to continue this coverage. (If you retired prior to September 14, 1999 with an entitlement to an annual allowance, you had to complete an election in order to continue SDB coverage after retirement.)

The SDB "basic benefit" is two times the final annual salary rounded up to the next $1,000 if not a multiple of $1,000. For example, an employee's final salary is $40,001; the SDB salary would be $81,000 ($40,001 × 2 = $80,002 rounded to the next $1,000). The monthly premium rate is 15 cents per $1,000 of coverage, the same as the rate paid by employees. This rate applies to participants of all ages.

At age 65, $10,000 of your coverage will be free for life. You will only have to pay premiums on the balance. Beginning at age 66, coverage decreases by one tenth of the original amount each year, although it will never fall below $10,000.

The reduction takes effect on April 1 or October 1, whichever date comes first after your 66th birthday and every year thereafter until you reach age 75. As the coverage decreases each year, there is a corresponding reduction in the monthly premium.

Thirty-one days following your retirement or any time thereafter, you may choose to reduce your coverage to $10,000, or cancel your coverage. The decision once made is irrevocable, and you may not later restore the full coverage. If you are interested in these options, please write to the Pension Centre (see Section 1) for more details.

Participants not entitled to an immediate pension

Those persons who have chosen a deferred annuity payable at age 60, or an annual allowance payable starting more than 30 days after retirement, must elect if they wish to continue their participation in the SDB Plan. These participants pay a higher premium rate based on age at retirement. In addition, there is no $10,000 paid-up coverage at age 65. After age 66 coverage decreases by one tenth of the original amount each year. All coverage ends at age 75. The deadline to elect to continue as a participant is 30 days after ceasing to be employed.

Option to retain former coverage

When plan improvements were introduced in 1999, certain participants could choose to have the 10% annual reduction start at age 61, or to have minimum coverage of $5,000. Those participants who made one of these options will have their coverage determined on that basis.

Designating a beneficiary

You may name the beneficiary of your SDB by completing the form "Naming or Substitution of a Beneficiary" (PSPC-SPAC 2196). You can obtain this form by contacting the Pension Centre (see Section 1). Your beneficiary may be:

Your beneficiary must be over age 18 at the time of naming, or the designation will be considered invalid and the benefit will be paid as though you had not named a beneficiary. As well, the original completed beneficiary form must be received by the Pension Centre prior to your death to be considered valid.

In addition to the SDB, the following amounts may be payable to your designated beneficiary if there is either no survivor or child/children to whom continuing pension benefits may be paid:

To change your beneficiary, you must submit a new designation form. Even in the event of divorce, a designation remains valid if unchanged. You are responsible to ensure that the designation reflects your current situation. The provisions of Wills, Agreements or Court Orders never determine the person to whom the benefit is payable.

You may name only one beneficiary at a time. To divide the benefit, you may wish to name your estate as beneficiary and have the benefit distributed in accordance with the terms of your will.

Your estate will be the recipient of your SDB if you choose not to name a beneficiary or if your designation is not valid. The only exception to this applies to male public service pension plan members who were participants in the SDB Plan and were also married before December 20, 1975. In such cases, if no beneficiary has been named and if the woman who was his spouse prior to that date survives him, the benefit is payable to her as the widow.

To ensure that we can locate your beneficiary at the time of your death, please continue to provide us with the current address of your beneficiary. If your beneficiary predeceases you, you should name a new beneficiary. If you do not complete a new designation form, the benefit will be paid to your estate.

Remember, to be valid your beneficiary designation form must be signed, dated, and witnessed and it must be received by the Pension Centre prior to your death. You should note that your witness cannot be your beneficiary.

Information about the payment of the death benefit is given in Section 12 - Survivor and child/children benefits.

Section 12: Survivor and child benefits

This is a general explanation of survivor and child/children benefits. When these benefits become payable, we will provide more specific information to your survivor or executor.

To ensure that there is no delay in the payment of benefits to your dependants, they and the representatives of your estate should know the contents of this section.

When death occurs

In the event of your death, the Pension Centre should be notified immediately and the death certificate or the certificate issued by the funeral director showing the date of death should be submitted. Other departments issuing payments should also be notified since a separate notice is required for each plan. If the documents mentioned in Section 2 were sent previously, the death certificate and confirmation of your address is usually all that is required, unless there has been a change in your marital status.

Since public service pensions are payable only to the end of the month of death, any cheques or direct deposits that cover a period after the month of death must be returned to the Government of Canada Pension Centre.

Where a plan member has disappeared and is thought to be dead, survivor benefits may be payable. In such a situation, the Pension Centre (see Section 1) should be contacted.

Supplementary death benefit

For supplementary death benefit (SDB) participants, once evidence of death is received and a claim form (if applicable) is completed, the SDB will be paid to the validly named beneficiary or, if no beneficiary is named or the beneficiary had died previously, to the pensioner's estate. However, as explained in Section 11, this benefit will be paid to your widow if you were a male participant in the public service pension plan prior to December 20, 1975, were married prior to that date and did not name a beneficiary.

Survivor's pension

A survivor's pension is ordinarily one-half of the plan member's unreduced pension (in other words, one-half of the member's pension before any applicable adjustment related to early retirement or to the loss of the bridge benefit). The formula for calculating a monthly survivor pension is one percent for each year of pensionable service (maximum 35 years) multiplied by the plan member's average salary over the best five consecutive years, divided by 12. The average salary is calculated over a six-year period if the plan member retired prior to June 17, 1999.

For example, the survivor pension where the plan member had 25 years of pensionable service and an average salary of $36,000 would be:

(1% × 25 yrs × $36,000) ÷ 12 months = $750 per month

Benefits payable for periods of part-time service are adjusted based on the plan member's assigned hours of work as compared to the full-time hours of the position. In addition, if your survivor received a lump sum transfer of funds under the Pension Benefits Division Act and also qualifies for survivor benefits, no benefits will be payable for the period covered by the division of pension benefits.

Conditions affecting payment

Your spouse will normally be entitled to survivor benefits if you were married before you retired from the public service.

If you marry after retirement, an optional form of survivor benefit coverage for your spouse is available, with three levels of coverage to choose from. To obtain coverage, you must submit a formal option within one year from the date of your marriage or from the date your pension commences, whichever is later. Your future pension payments will be reduced commencing the second month following your option and a survivor benefit will be payable after your death if you predecease your spouse. You can request estimates of the three levels of spousal benefits available and the adjustment to your monthly pension that corresponds to each level of coverage. Contact the Pension Centre (see section 1) for more details. Note: If the marriage was preceded by a common-law relationship starting prior to retirement, regular survivor benefits may be available (see "Common-Law Relationships" below).

As a female plan member, your husband will not be eligible for a surviving spouse's allowance if you ceased to be employed in the public service and a contributor under the Public Service Superannuation Act before December 20, 1975. Prior to that date, female plan members contributed to the plan at a lower rate. However, a survivor benefit would be payable if you opted to receive a reduced pension, as described in the preceding paragraph, before February 18, 1995. For more information on this subject, please contact the Pension Centre (see section 1).

If the plan member's death occurs within one year of marriage, the surviving spouse is not entitled to a pension unless it can be shown that at the time of marriage the plan member could have reasonably been expected to live for at least one year. If the plan member could not have been expected to live at least one year but the couple had a prior common-law relationship, survivor benefits may be payable on that basis (see "Common-law relationships" below).

Common-law relationships

A survivor's pension may be paid to a person who was a common-law partner of the plan member. In order to be considered the plan member's survivor, the person must have lived with the plan member in a conjugal relationship for at least one year immediately prior to his death. In addition, the relationship had to have started prior to the plan member's retirement and continued without interruption until the plan member's death.

A person making a claim for benefits must submit evidence in the form of sworn statements and supporting documentation such as letters, bills, receipts, rental agreements, leases, government records, etc., demonstrating that he lived with the plan member in a conjugal relationship for the required period of time. Any statements or other evidence that the plan member may have submitted is also taken into account. Documentation submitted prior to death establishing the nature of your relationship before you retired can be helpful though a final decision on benefit eligibility cannot be made until after the plan member's death. Further information concerning eligibility and the type of documentation required to establish entitlement to survivor benefits in these circumstances is available from the Pension Centre (see section 1).

Marital separations

Where there has been a marital separation for any length of time immediately before the plan member's death, the surviving spouse will still be entitled to survivor benefits unless the spouse cannot be located or waives entitlement to benefits (see "Waiver of Survivor Entitlement"). In all cases of divorce, the former spouse is not eligible for survivor benefits upon the death of the plan member.

Apportionment of benefits

The survivor benefit will be apportioned where a valid claim is made by both a legal spouse who was separated from the plan member and a common-law partner. The portion payable to each survivor is determined based on the length of each person's cohabitation with the plan member.

Note

Because circumstances in the above situations may change, no decision about the payment of survivor benefits will be made prior to your death. Although you cannot choose who is to receive or not receive survivor benefits, you may wish to provide a statement establishing what your marital situation was at retirement. Contact the Pension Centre to obtain the necessary Statutory Declaration form (PSPC-SPAC 2016). This form is also available on-line by choosing Your Public Service Pension and Benefits - Retired Member and then Forms under the left navigation bar. Any information submitted is kept in strict confidence.

Waiver of survivor entitlement

A survivor may waive his or her entitlement to an allowance if the waiver will result in payment of a minimum benefit or increase the amount of a child's or student's allowance. The waiver must be completed no later than three months from the date the notice of the entitlement is sent to the survivor. The minimum benefit is explained in Section 13.

Children's allowances

A deceased plan member's child/children who is less than 18 years old is usually eligible for a monthly child's allowance. Where a child is born, adopted or becomes a stepchild after retirement, the child's allowance is not normally payable.

The allowance is payable to the person who has custody of the child/children, usually the surviving spouse or partner. The amount is one-fifth of the survivor's pension. Where there is no survivor, or where the survivor dies or is not entitled to an allowance, the child's allowance is paid at twice the rate described above. Where both parents were plan members and both have died, the child may be entitled to a child's allowance in respect of each parent's participation in the plan.

The total allowance payable cannot exceed four-fifths of the survivor's pension or, where there is no eligible survivor, double that amount. Where there are more than four child/children, the total allowance will be apportioned among all the eligible children.

Students' allowances

A student's allowance may be payable to a deceased plan member's child who is between the ages of 18 to 25, and enrolled in an accredited full-time educational program since attaining age 18 or since the date of the plan member's death, whichever is later.

The student must apply annually for the allowance. An application form is mailed out each August to those students under 25 who received a pension the previous year. The application forms are also available from the Pension Centre. A student's allowance is paid directly to the student and is equal to a child's allowance. A break in attendance may disqualify the student from receiving further payment, depending upon the length of the break.

A substantial break in attendance is one which involves a withdrawal from school or delays enrollment. Short periods of illness and regular scholastic vacations do not constitute substantial breaks in attendance.

Note

Under no circumstances will entitlement to an allowance be established or reinstated:

  1. where a break in attendance commences during an academic year and extends beyond the end of the following academic year; or
  2. where a break in attendance commences after the completion of an academic year and extends beyond the end of the two following academic years

Indexation

Under Part III of the Public Service Superannuation Act, everyone receiving a survivor's pension, a child's allowance, or a student's allowance receives automatic annual increases to help offset increases in the cost of living (please refer to Section 6).

Additional income

Pension benefits paid to a survivor or child/children are not affected by employment in the federal public service or elsewhere, or by receipt of a pension under the Canada or Quebec Pension Plan.

Medical insurance plans

Coverage under provincial medical insurance plans, the Public Service Health Care Plan and the Pensioners' Dental Services Plan ceases on the death of the plan member.

Written application must be made by the plan member's survivor and/or child/children if they wish to continue coverage under these plans. Your executor or survivors should contact the Pension Centre (see section 1) in this regard.

Section 13: Minimum benefit

The Public Service Superannuation Act, provides a guaranteed minimum benefit which is equal to five times the plan member's annual unreduced pension.

After the plan member has died, and where there is no longer any survivor or child/children eligible for an allowance, the total of all pensions and allowances paid, excluding indexation, is compared to the minimum guaranteed amount. If there is a balance owing, it is paid in a lump sum to the beneficiary designated for the Supplementary Death Benefit or, if no beneficiary was designated or the beneficiary died before the plan member, to the plan member's estate.

In the case of a minimum benefit payment, it may be advisable for the beneficiary to seek income tax and related advice before the payment is made.

Benefits for Retired Members June 2011 - Pension Calculation Chart.

Note

If the plan member retired before December 20, 1975, the minimum benefit is equal to the return of contributions plus interest, minus the total of all benefits, excluding indexation, paid to the plan member, survivor and child/children.

Pension calculation chart

Pension expressed as percentage of average salary at given age and years of pensionable service (PS).

The following is an image of the pension calculation chart. From left to right, the top of the chart has columns showing the age at option beginning at age 50 to the age of 60. On the left hand side of the chart from top to bottom the rows indicate the years of pensionable service starting at 10 years and ending at 35 years of pensionable service. For each age at option column which corresponds to a years of pensionable service row, the chart shows the percentage of the pension payable at a given age and years of pensionable service. For example, a plan member who is age 53 at the time he makes his option and has 30 years of pensionable service would receive a pension representing 54% of his average salary.

Note

The percentages indicated in square brackets on the chart below, beginning at 25 years and extending to 35 years of pensionable service, do not apply to contributors who retired prior to age 50 and who have chosen an annual allowance.

Years of Pensionable Service and Age of Option
Years
of
PS
Age at option
50 51 52 53 54 55 56 57 58 59 60
10 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0
11 11.0 12.1 13.2 14.3 15.4 16.5 17.6 18.7 19.8 20.9 22.0
12 12.0 13.2 14.4 15.6 16.8 18.0 19.2 20.4 21.6 22.8 24.0
13 13.0 14.3 15.6 16.9 18.2 19.5 20.8 22.1 23.4 24.7 26.0
14 14.0 15.4 16.8 18.2 19.6 21.0 22.4 23.8 25.2 26.6 28.0
15 15.0 16.5 18.0 19.5 21.0 22.5 24.0 25.5 27.0 28.5 30.0
16 16.0 17.6 19.2 20.8 22.4 24.0 25.6 27.2 28.8 30.4 32.0
17 17.0 18.7 20.4 22.1 23.8 25.5 27.2 28.9 30.6 32.3 34.0
18 18.0 19.8 21.6 23.4 25.2 27.0 28.8 30.6 32.4 34.2 36.0
19 19.0 20.9 22.8 24.7 26.6 28.5 30.4 32.3 34.2 36.1 38.0
20 20.0 22.0 24.0 26.0 28.0 30.0 32.0 34.0 36.0 38.0 40.0
21 21.0 23.1 25.2 27.3 29.4 31.5 33.6 35.7 37.8 39.9 42.0
22 22.0 24.2 26.4 28.6 30.8 33.0 35.2 37.4 39.6 41.8 44.0
23 23.0 25.3 27.6 29.9 32.2 34.5 36.8 39.1 41.4 43.7 46.0
24 24.0 26.4 28.8 31.2 33.6 36.0 38.4 40.8 43.2 45.6 48.0
25 [37.5]does not apply to contributors who retired prior to age 50 [37.5]does not apply to contributors who retired prior to age 50 [37.5]does not apply to contributors who retired prior to age 50 [37.5]does not apply to contributors who retired prior to age 50 [37.5]does not apply to contributors who retired prior to age 50 37.5 40.0 42.5 45.0 47.5 50.0
26 [39.0]does not apply to contributors who retired prior to age 50 [41.6]does not apply to contributors who retired prior to age 50 [41.6]does not apply to contributors who retired prior to age 50 [41.6]does not apply to contributors who retired prior to age 50 [41.6]does not apply to contributors who retired prior to age 50 [41.6]does not apply to contributors who retired prior to age 50 41.6 44.2 46.8 49.4 52.0
27 [40.5]does not apply to contributors who retired prior to age 50 [43.2]does not apply to contributors who retired prior to age 50 [45.9]does not apply to contributors who retired prior to age 50 [45.9]does not apply to contributors who retired prior to age 50 [45.9]does not apply to contributors who retired prior to age 50 [45.9]does not apply to contributors who retired prior to age 50 [45.9]does not apply to contributors who retired prior to age 50 45.9 48.6 51.3 54.0
28 [42.0]does not apply to contributors who retired prior to age 50 [44.8]does not apply to contributors who retired prior to age 50 [47.6]does not apply to contributors who retired prior to age 50 [50.4]does not apply to contributors who retired prior to age 50 [50.4]does not apply to contributors who retired prior to age 50 [50.4]does not apply to contributors who retired prior to age 50 [50.4]does not apply to contributors who retired prior to age 50 [50.4]does not apply to contributors who retired prior to age 50 50.4 53.2 56.0
29 [43.5]does not apply to contributors who retired prior to age 50 [46.4]does not apply to contributors who retired prior to age 50 [49.3]does not apply to contributors who retired prior to age 50 [52.2]does not apply to contributors who retired prior to age 50 [55.1]does not apply to contributors who retired prior to age 50 [55.1]does not apply to contributors who retired prior to age 50 [55.1]does not apply to contributors who retired prior to age 50 [55.1]does not apply to contributors who retired prior to age 50 [55.1]does not apply to contributors who retired prior to age 50 55.1 58.0
30 [45.0]does not apply to contributors who retired prior to age 50 [48.0]does not apply to contributors who retired prior to age 50 [51.0]does not apply to contributors who retired prior to age 50 [54.0]does not apply to contributors who retired prior to age 50 [57.0]does not apply to contributors who retired prior to age 50 [60.0]does not apply to contributors who retired prior to age 50 [60.0]does not apply to contributors who retired prior to age 50 [60.0]does not apply to contributors who retired prior to age 50 [60.0]does not apply to contributors who retired prior to age 50 [60.0]does not apply to contributors who retired prior to age 50 60.0
31 [46.5]does not apply to contributors who retired prior to age 50 [49.6]does not apply to contributors who retired prior to age 50 [52.7]does not apply to contributors who retired prior to age 50 [55.8]does not apply to contributors who retired prior to age 50 [58.9]does not apply to contributors who retired prior to age 50 [62.0]does not apply to contributors who retired prior to age 50 [62.0]does not apply to contributors who retired prior to age 50 [62.0]does not apply to contributors who retired prior to age 50 [62.0]does not apply to contributors who retired prior to age 50 [62.0]does not apply to contributors who retired prior to age 50 62.0
32 [48.0]does not apply to contributors who retired prior to age 50 [51.2]does not apply to contributors who retired prior to age 50 [54.4]does not apply to contributors who retired prior to age 50 [57.6]does not apply to contributors who retired prior to age 50 [60.8]does not apply to contributors who retired prior to age 50 [64.0]does not apply to contributors who retired prior to age 50 [64.0]does not apply to contributors who retired prior to age 50 [64.0]does not apply to contributors who retired prior to age 50 [64.0]does not apply to contributors who retired prior to age 50 [64.0]does not apply to contributors who retired prior to age 50 64.0
33 [49.5]does not apply to contributors who retired prior to age 50 [52.8]does not apply to contributors who retired prior to age 50 [56.1]does not apply to contributors who retired prior to age 50 [59.4]does not apply to contributors who retired prior to age 50 [62.7]does not apply to contributors who retired prior to age 50 [66.0]does not apply to contributors who retired prior to age 50 [66.0]does not apply to contributors who retired prior to age 50 [66.0]does not apply to contributors who retired prior to age 50 [66.0]does not apply to contributors who retired prior to age 50 [66.0]does not apply to contributors who retired prior to age 50 66.0
34 [51.0]does not apply to contributors who retired prior to age 50 [54.4]does not apply to contributors who retired prior to age 50 [57.8]does not apply to contributors who retired prior to age 50 [61.2]does not apply to contributors who retired prior to age 50 [64.6]does not apply to contributors who retired prior to age 50 [68.0]does not apply to contributors who retired prior to age 50 [68.0]does not apply to contributors who retired prior to age 50 [68.0]does not apply to contributors who retired prior to age 50 [68.0]does not apply to contributors who retired prior to age 50 [68.0]does not apply to contributors who retired prior to age 50 68.0
35 [52.5]does not apply to contributors who retired prior to age 50 [56.0]does not apply to contributors who retired prior to age 50 [59.5]does not apply to contributors who retired prior to age 50 [63.0]does not apply to contributors who retired prior to age 50 [66.5]does not apply to contributors who retired prior to age 50 [70.0]does not apply to contributors who retired prior to age 50 [70.0]does not apply to contributors who retired prior to age 50 [70.0]does not apply to contributors who retired prior to age 50 [70.0]does not apply to contributors who retired prior to age 50 [70.0]does not apply to contributors who retired prior to age 50 70.0
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