Here you will find answers to the 10 most commonly asked questions related to pension and insurance benefits topics.

Pension Plan

1. Are your contributions "locked-in" after two years?
2. What is the difference between monthly installments and making a lump sum payment for service buyback (elective service)?
3. What happens if you haven't finished paying for a period of prior service (Service Buyback) when you retire?
4. If you leave the public service and choose a transfer value, does the calculation take into account indexing?
5. You had some part-time employment. How will your pension be calculated?

Insurance Benefits

1. Are you covered if you need medical or hospital services while traveling outside Canada?
2. Can you change your Public Service Health Care Plan (PSHCP) Hospital Benefits coverage levels at any time?
3. What happens if you and your spouse or common-law partner are each covered under a dental care plan?
4. What benefits will you receive under the Disability Insurance (DI) or Long-term Disability (LTD) plans if you become disabled?
5. Does your dental coverage continue after you retire?

Pension Plan

1. Are your contributions "locked-in" after two years?
If you leave the public service and have made contributions under the public service pension plan for less than two years, you are entitled only to a return of contributions with interest. However, two years from the day on which you began to make contributions under the public service pension plan, your contributions will be "locked-in” and vested. After being vested, you will be entitled to other pension options.

2. What is the difference between monthly installments and paying in a lump sum for service buyback (elective service)?
If you choose to buy back previous service, you have the option between paying for this buyback in monthly installments or in a lump sum payment at the time the election is made. Monthly installments are more costly than a lump sum payment because the monthly cost includes a mortality charge to cover the cost of insurance and interest on the unpaid balance. In the event of your death, neither your estate nor your survivors are required to make any payments owed after your death.

3. What happens if you haven't finished paying for a period of prior service (service buyback) when you retire?
If you retire on pension before paying all your installments for prior service, your pension will be calculated to include all your service buyback, but the unpaid installments will be deducted monthly from your pension benefit (includes interest, if applicable).

4. If you leave the public service and choose a transfer value, does the calculation take into account indexing?
Yes. A transfer value takes indexing into account when it is calculated. A transfer value is a lump sum payment representing the estimated actuarial present value of a plan member's deferred annuity which would be payable at age 60. A transfer value is based on demographic and economic assumptions. Economic assumptions reflect recommendations from the Canadian Institute of Actuaries.

5. You had some part-time employment; how will your pension be calculated?
The basic benefit for any period of part-time pensionable service will be calculated as follows:

If a person had 25 years of full-time service, along with 10 years of part-time service working 20 hours during a standard 37.5 hour workweek, the basic benefit calculation would be as follows:

Insurance Benefits

1. Are you covered if you need medical or hospital services while traveling outside Canada?
Effective April 1, 2006, the Public Service Health Care Plan (PSHCP) covers members and their dependants for up to $500,000 (Canadian) in eligible medical expenses incurred as a result of an emergency while traveling on vacation or business. Prior to April 1, 2006, the maximum eligible expense was $100,000 (Canadian).

Eligible expenses are described in the plan member booklet Public Service Health Care Plan Directive - Benefits Coverage and Plan Provisions. They include charges for hospital accommodation and the services of a physician. They can also include reasonable costs for medical evacuation, family assistance for travel, meals and childcare, for example.

Eligible expenses include charges in excess of the amount payable by a provincial or territorial health insurance plan for emergency treatment of injury or disease that occurs within 40 days from the date of departure from your province or territory of residence.

The 40-day time limit does not apply in the case of employees who are traveling on official government business. They are covered for the entire period of official travel status. However, the $500,000 (Canadian) benefit coverage limit still applies.

If two plans have a $500,000 (Canadian) maximum eligible emergency travel expense benefit and someone is covered under both plans, one as a member and the other as a dependant of a member, then they could claim from both plans if their own plan did not cover all the expenses.

If you are traveling outside Canada, be sure to take the Public Service Emergency Travel Assistance telephone numbers with you.

2. Can you change your Public Service Health Care Plan (PSHCP) Hospital Coverage levels at any time?
You can apply to cover or cancel your dependants' coverage or amend your level of Hospital Benefits coverage at any time except while you are on leave without pay. You can modify your PSHCP coverage, including your Hospital Benefit coverage, by either completing a paper application form (www) or by accessing the secure Public Service Health Care Plan Web Application tool on the Compensation Web Applications (CWA). The effective date of the amended coverage will depend upon the type of change you are making and the timeframe within which you make it. Refer to the Public Service Health Care Plan for details.

3. What happens if you and your spouse or common-law partner are each covered under a dental care plan?
When you and your spouse or common-law partner are covered by another group dental plan care in addition to the Public Service Dental Care Plan (DCP), you may claim reimbursement under both plans. This is commonly referred to as co-ordination of benefits. The combined reimbursement from all plans cannot exceed 100% of the actual expenses. Co-ordination of benefits is also permitted within the DCP if both you and your spouse or common-law partner are DCP members (i.e. you can claim eligible expenses under each other's certificate numbers).

4. What benefits will you receive under the Disability Insurance (DI) or Long-term Disability (LTD) plans if you become disabled?
If you become disabled and your claim is approved by the insurer, your monthly benefits will equal 70% of your insured annual salary. Benefits under DI or LTD plans begin once you have used all your sick leave and provided that you have met a minimum waiting period of 13 weeks. Benefits continue for as long as you meet the test of total disability under the plan. If you are permanently disabled as defined by the plan, your DI or LTD benefits will continue until you reach age 65.

Your benefits under the DI and LTD plans are harmonized with other sources of disability income you may have by offsetting benefits received.

5. Does your dental coverage continue after you retire?
The Pensioners' Dental Services Plan (PDSP) is available to most federal public service pensioners. This is a separate dental plan from the one you were enrolled in as an active member. The PDSP is an optional plan which provides dental services coverage to eligible federal pensioners and their eligible family members; including survivors. For more information, visit the Pensioners' Dental Services Plan.