Exploring Pension Benefit Options: Immediate Annuity

(Background music: Welcome page with a logo of the Government of Canada Pension Centre.)

At the Government of Canada Pension Centre, we are here to help.

Hi, my name is Ben.

Are you planning to retire if you're watching this video? You probably are, and that's great.

Several pension options may be available to you.

Today, we'll cover the immediate annuity option.

(The narrator leaves by the left of the screen. He sits on a lawn chair.)

An immediate annuity simply means that your monthly pension payments start immediately at retirement.

It is also known as an unreduced pension.

The amount you received is based on your total years of pensionable service up to a maximum of 35 years, and your average salary for the five consecutive best paid years of service.

Often they're the last five years of your career.

So the more years of service you have and the higher your salary, the greater your pension will be.

We use a pension formula to calculate your immediate annuity.

To find out more about this formula and calculation examples, please visit our website.

You may be wondering what is required to obtain an immediate annuity.

Well, your eligibility depends on your age and your years of pensionable service at retirement.

The date you joined the Public Service Pension Plan determines when you qualify to get your unreduced pension.

Here are the rules to receive an immediate annuity when you retire from the Federal Public Service:

• If you became a planned member on or before December 31, 2012:
  • You are eligible if you are at least 60 years of age and have at least two years of pensionable service; or
  • You are between age 55 and 60 and have at least 30 years of pensionable service; or
  • At any age, Health Canada confirms that you are permanently disabled and have at least two years of pensionable service.
• If you became a planned member on or after January 1, 2013, you are eligible if:
  • you are at least 65 years of age and have at least two years of pensionable service; or
  • You are between age 60 and 65 and have at least 30 years of pensionable service, or
  • At any age Health Canada confirms that you are permanently disabled and have at least two years of pensionable service.

(When the narrator says “Here are the rules to receive an immediate annuity …,” a dark grey screen appears with the words RULES TO RECEIVE AN IMMEDIATE ANNUITY. The following information is also written: ON OR BEFORE [underlined] DECEMBER 31, 2012/YOU ARE AT LEAST 60 YEARS OF AGE AND HAVE AT LEAST 2 YEARS OF PENSIONABLE SERVICE; OR/YOU ARE BETWEEN AGE 55 AND 60 AND HAVE AT LEAST 30 YEARS OF PENSIONABLE SERVICE; OR/AT ANY AGE, HEALTH CANADA CONFIRMS THAT YOU ARE PERMANENTLY DISABLED AND YOU HAVE AT LEAST 2 YEARS OF PENSIONABLE SERVICE.)

(When the narrator says “If you became a plan member on or after January 1, 2013 …,” the following information is written: ON OR AFTER [underlined] JANUARY 1, 2013/YOU ARE AT LEAST 65 YEARS OF AGE AND HAVE AT LEAST 2 YEARS OF PENSIONABLE SERVICE; OR/YOU ARE BETWEEN AGE 60 AND 65 AND HAVE AT LEAST 30 YEARS OF PENSIONABLE SERVICE; OR/AT ANY AGE, HEALTH CANADA CONFIRMS THAT YOU ARE PERMANENTLY DISABLED AND YOU HAVE AT LEAST 2 YEARS OF PENSIONABLE SERVICE.)

Like all other pension benefits, the immediate annuity is fully indexed to the cost of living.

This means your pension will be adjusted for inflation every January.

(The narrator is back on screen, still sitting on a lawn chair.)

Now, did you know that reentering the Federal Public Service could affect your indexing? If you are reemployed after retirement and are eligible to contribute to the pension plan, your pension payments will stop.

When your pension starts again, your most recent retirement date will determine your new indexing rate.

You would then lose all the indexing increases you have accumulated since your previous retirement.

Once you qualify for an immediate annuity, you may be eligible for other benefits.

Your participation in the Supplementary Death Benefit Plan is automatically extended if you participated to it while employed, and you could join the Pensioners Dental Services Plan and the Public Service Health Care Plan.

For more details, feel free to call us here at the Pension Centre.

To better prepare for your retirement, it's a good idea to get an estimate for your immediate annuity. To do so, go to the Compensation Web Application or CWA website.

Access the pension portal for active members to the public service.

Once you sign in, click on pension tools and then Pension Benefits Calculator.

(When the narrator says, “… go to the Compensation Web Applications…” a screen shot of the Web page that leads to the Compensation Web Application appears in the top-right corner of the screen. When the narrator says “Access the Active Member Pension Application” a screen shot of the Web page that leads to the Active Member Pension Application appears in the top-right corner of the screen. When the narrator says, “… click on the Personalized Pension Tools…” a screen shot of the Web page that leads to the Personalized Pension Tools appears in the top-right corner of the screen. The screen shot disappears.)

You'll also receive a pension estimate with your retirement information package.

The estimate will include amounts for your immediate annuity.

I hope this was helpful to you. As always, should you have any questions, feel free to contact us or visit: canada.ca/pension-benefits.

(The narrator is now standing, in the outdoor wooded area. When he says, “… feel free to contact us or visit” the words CANADA.CA/PENSION-BENEFITS appear at the bottom of the screen. The text disappears. The narrator leaves by the left side of the screen.)

Thanks for watching.

(Text on screen: Contact information: Government of Canada Pension Centre – Mail Facility, PO BOX 8000, Matane QC G4W 4T6. Telephone: 1-800‑561‑7930. Email: pwgsc.pensioncentre-centredespensionstpsgc@pwgsc-tpsgc.gc.ca)

(Text on screen: Check us out: facebook.com/PSPC.SPAC, instagram.com/pspc_spac, twitter.com/pspc_spac, youtube.com/PWGSCanada)

[Music stops]

(Public Services and Procurement Canada signature)

(Canada Wordmark)