Pension portability

I have pensionable service with my previous outside employer, can it be transferred to the public service pension plan?

Discover how you may, under certain conditions, make an option for a transfer value by watching the video below. You will also learn how a Transfer Value is affected by taxation and the significance of making such a decision. Click on the links below for more information on this topic.

Transcript of the Pension portability

Have you recently joined or left the federal public service? If so, you may be able to transfer your pensionable service into or out of the public service pension plan through one of the pension portability provisions.

In order to do this, a Pension Transfer Agreement must exist between the Government of Canada and the outside employer in question. The Pension Transfer Agreement is a mechanism used to facilitate the transfer of pensionable service between employers.

Usually, you have one year from the later of the time you become a member of the new pension plan or from the date a Pension Transfer Agreement is signed to take advantage of a transfer agreement. You must also have terminated employment with your former employer and have not received a return of your contributions or any other benefit in respect of the service to be transferred.

The federal transfer amount is a lump sum representing the present value of an active member's future pension. The value reflects the plan terms that apply to you. If you became a plan member on or before December 31, 2012, the actuarial value reflects a normal retirement age of 60. If you became a plan member on or after January 1, 2013, the actuarial value reflects a normal retirement age of 65.

For those who transfer their prior pensionable service into the public service pension plan, there may be a shortfall in the amount transferred. Typically, a shortfall occurs when the benefits provided by the current plan are more costly than those provided by the former plan. A shortfall would result in some service not being transferred. In that case, it is possible to buy back the missing period of service.

In addition, if you transferred your federal public service pension to a new employer’s pension plan, under the general portability rules or a pension transfer agreement and you become re-employed in the public service and a plan member on or after January 1, 2013, you would be covered under the new pension plan terms. The normal retirement age would be age 65. To learn more, you may view the re-employment after retirement video.

There are other things to consider before signing your pension transfer request and we encourage you to consult the Pension portability package on Pension and benefits web portal or contact the Government of Canada Pension Centre for more information.

Public Services and Procurement Canada

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