Active Member

Life Events

New to the Public Service

The public service pension plan and group insurance benefits plans provide you, as a member, peace of mind today and for years to come. The following information is intended to provide you with an understanding of your pension and benefits options.

A printable brochure Welcome to the public service pension plan is available for new or re-employed members. It is intended to draw your attention to parts of the public service pension plan that are important to you. Some aspects of the plan are time-sensitive, therefore it is suggested that you review this document as soon as possible.

You may want to know…

Are you eligible to join the public service pension plan?

As a full-time or part-time public service employee (minimum 12 hours per week), you are covered by the pension benefit provision under the public service pension plan:

  • from your first day at work, if you are appointed on an indeterminate basis; or
  • from your first day at work, if you are hired for a period of more than six months; or
  • after six months of continuous employment, if you were originally hired for a period of six months or less.

Generally, the date when you became a member of the public service pension plan determines when you will be eligible to receive an unreduced pension benefit:

  • If you became a plan member on or before December 31, 2012, you are eligible to receive an unreduced pension benefit if you leave the public service at age 60 or over with at least two years of pensionable service (or age 55 or over with at least 30 years of pensionable service); or,
  • If you became a plan member on or after January 1, 2013, you are eligible to draw an unreduced pension benefit if you leave the public service at age 65 or over with at least two years of pensionable service (or age 60 or over with at least 30 years of pensionable service).

Note: If you are a re-employed plan member, please refer to the Re-employment section of the Treasury Board of Canada Secretariat Web site.

More information concerning your eligibility to participate in the public service pension plan is available on the Treasury Board of Canada Secretariat Web site.

What does your public service pension plan include?
  • Your Pension at a Glance provides a summary of what the plan offers.
  • For more information about the public service pension plan, consult the Pensions section of the Treasury Board of Canada Secretariat Web site.
How is your public service pension plan governed?

The public service pension plan is a legislated pension plan. The main provisions of the pension plan are governed by the Public Service Superannuation Act and the Public Service Superannuation Regulations. Further authority is provided under other statutes which can be found on the Acts and Regulations page.

What should you consider if you have worked for the federal public service in the past?

You may be eligible to increase your pensionable service by purchasing past periods of employment. Increasing your pensionable service may allow you to retire at an earlier date. There are also other advantages. Please refer to the Service Buyback Package to see if you are eligible to buy back prior service.

If you are eligible to buy back prior service, use the ARCHIVED Compensation Web Applications (CWA) - Service Buyback Estimator tool to estimate the cost of purchasing past service.

What should you consider if you have worked outside the federal public service in the past?

You may be eligible to transfer your pensionable service from your former employer to the public service pension plan through a Pension Transfer Agreement (PTA). You may also be able to purchase your service and have it counted as pensionable under our pension plan (refer to the Service Buyback Package).

Is there a limit to the amount of pensionable service you may accrue?

Yes. You may only accrue up to a maximum of 35 years of pensionable service. This 35-year maximum includes the following types of service:

  • service for which you contributed to the public service pension plan through deductions from your salary;
  • past service you have purchased;
  • past service you have transferred from another pension plan;
  • pensionable service with certain other federal government pension plans, such as the Canadian Forces pension plan or the Royal Canadian Mounted Police pension plan.

When you reach the maximum of 35 years of pensionable service, your current service contributions reduces to one percent of your salary. This lower contribution amount ensures full protection from inflation of your future pension. Although you will not accrue additional years of pensionable service after reaching 35 years, the salary paid to you during this period will be used in the calculation of the average salary of your five consecutive years of highest paid service on which your pension under the public service pension plan will be based.

What insurance benefits are available to you?

The following insurance benefits may be available to you:

  • The Disability Insurance Plan provides a monthly income benefit for members of the Disability Insurance Plan who are unable to work for a lengthy period of time because of a totally disabling illness or injury.
  • The Supplementary Death Benefit provides a form of decreasing term life insurance protection, which is designed to cover members of the public service pension plan. Coverage begins when you become a member of the public service pension plan.
  • The Public Service Dental Care Plan (PSDCP) provides members and their dependants with coverage, up to certain limits, for dental service and supply expenses. Benefits can be paid after a waiting period of three months from the day you become a member of the PSDCP.
  • The Public Service Health Care Plan (PSHCP) provides optional health care coverage for members and their eligible dependants. If you wish to join, you must apply for coverage by completing and submitting either an electronic application using the secure online Public Service Health Care Plan Web Application on the ARCHIVED Compensation Web Applications (CWA) or, if you do not have access to CWA, you can complete and submit a paper application form (PDF, 95KB) (Help for PDF fileThe WWW icon indicates a link that takes you outside the federal government's common web environment. to your designated compensation advisor.
  • The Public Service Management Insurance Plan (PSMIP) provides group life insurance, accidental death and dismemberment insurance, dependants' insurance and long-term disability insurance to eligible members. Eligible members are generally those who are employed in managerial or confidential positions. To determine if you are eligible to enrol in the PSMIP, contact your Compensation Advisor.
Under the Supplementary Death Benefit, whom can you designate as your beneficiary?

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 form.

You should notify the Government of Canada Pension Centre when your beneficiary moves. A current address on file will enable the Pension Centre to pay the benefit without delay.

In the absence of a named beneficiary, the benefit is paid to your estate.

Does your Will affect who receives your Supplementary Death Benefit?

Wills, Agreements and Court Orders do not affect who receives your Supplementary Death Benefit. The person you named as your beneficiary for the Supplementary Death Benefit (SDB) Plan receives your death benefit.

You can only name one beneficiary under this plan. If you wish to divide your death benefit among two or more people, you must name your estate as your beneficiary. You may then specify in your Will how the benefit should be divided.

If you wish to cancel a previous designation without naming a person or an organization (religious, educational, charitable or benevolent), you must also name your estate as your beneficiary.

Under the Public Service Management Insurance Plan (PSMIP), how do you name a beneficiary?

To designate a beneficiary under the PSMIP, you must complete the Public Service Management Insurance Plan form.

Increasing Your Pension

Increasing your pensionable service may be advantageous in many ways. By increasing your pensionable service, you can increase your pension benefit. In addition, it may provide you with the opportunity to reach the maximum threshold of 35 years pensionable service earlier, possibly enabling you to retire sooner. You can increase your pensionable service by different means while you are employed and a public service pension plan member; either by making a service buyback, by reinstating transfer value service or by requesting a pension transfer agreement.

You may want to know…

What is a "service buyback" (also known as elective service)?

A service buyback is a legally binding agreement to purchase a period of prior service to increase your pensionable service under the public service pension plan. Additional information can be found in the Increasing Your Pension section.

What is a "transfer value reinstatement"?

A transfer value reinstatement is a special service buyback to reinstate the pensionable service for which you received a transfer value benefit under the Public Service Superannuation Act (PSSA). A transfer value benefit is a lump sum pension amount representing the present value of a plan member's accrued pension entitlement that is payable in the future.

Note: The option to buy back your prior transfer value service is available on a one-time basis only and within one year from the date you again become a contributor to make such an election.

You may refer to the Service Buyback Package or the Re-employment After Retirement life event for information on the reinstatement of transfer value service.

What is a "pension transfer agreement"?

Pension Transfer Agreements are agreements used to transfer the actuarial value of your accrued pension benefit from one pension plan to another.

Would previous federal public service employment count as pensionable service under the public service pension plan?

There are several types of prior service that you may be able to buy back:

  • Prior federal public service
  • Service with the Canadian Forces
  • Service with the Royal Canadian Mounted Police
Would employment outside the federal public service count as pensionable service under the public service pension plan?

If you were a member of a pension plan with your former employer, there are ways of Increasing Your Pension, you have two options:

  1. Buy back eligible prior service through a service buyback.
  2. Transfer pensionable service from your former pension plan to the public service pension plan using Pension Transfer Agreements. Your former employer must have a Pension Transfer Agreement with the federal government. If not, your former employer may be able to negotiate one.

Note: You must decide to use these options within a certain time limit, once you become a member of the public service pension plan.

How much will it cost to buy back your prior service and for how long will you have to make payments?

The cost of buying back service is affected by the public service pension plan contribution rates as well as your salary and your age, when you sign a buyback form. You can estimate the cost of buying back service using the ARCHIVED Compensation Web Applications (CWA) - Service Buyback Estimator. More details are available in the Service Buyback Package.

What are your payment options for a service buyback?

If you choose to buy back previous service, you have three payment options. You can pay by monthly deductions from your salary, lump sum payment(s), or a combination of these payment methods. Please note that you may make additional payments at any time. Refer to the Service Buyback Package and the Increasing Your Pension section for additional information on payments.

What is the difference between making monthly payments and paying in a lump sum for a service buyback?

Monthly deductions are more costly than a lump sum payment because the monthly deductions are life-insured and consist of principal, interest and life insurance amounts. When monthly installments are life-insured, neither your estate nor your survivors are required to make any payments that would be owed after your death. Any payments owed upon your death or that are not life-insured will be collected.

How do you make a service buyback?

The instructions for making a service buyback are contained in the Service Buyback Package, along with all required forms. A service buyback is a legal binding agreement and you should therefore review the information contained in the Package before you decide to purchase your prior service.

Taking a Leave of Absence from the Public Service

During the course of your career in the federal public service, you may decide to take an unpaid absence (leave without pay) from work for personal or other reasons. You can find more information about leave without pay and how it can affect your pension entitlements in the Leave Without Pay Information Package.

In addition, the following information is intended to help you understand how your pension and insurance benefits will be affected.

You may want to know…

Do you continue to contribute to the pension plan during periods of leave without pay?

Yes. You continue to contribute to the pension plan for the first three months of your leave without pay. After that period, you may choose to count or not to count the balance of your leave without pay as pensionable. For more information, refer to the Leave Without Pay Information Package.

How much do you contribute to the pension plan for periods of leave without pay?

The amount that you contribute to the pension plan depends on the duration of your leave and type of leave you are taking.

  • In most cases the contribution rate for the first three months of a period of leave without pay is at single rate, meaning that you are only required to pay your share of contributions.
  • For your period of leave after the first three months, you will be required to pay contributions at either single or double rate (your share and the employer's share of the contributions). Further information on contribution rates for specific types of leave without pay can be found in the Leave Without Pay Information Package.
Can you choose not to count your period of leave without pay for pension purposes?

Yes. While still employed, you may choose not to count periods of leave without pay in excess of the first three months. Further information and deadlines to proceed with this option are available in the Leave Without Pay Information Package.

Can you choose not to count your period of leave without pay for pension purposes and then change your mind?

Yes. Even after you have chosen not to count your leave without pay, you can, at a later date, decide to count the service through a service buyback. The cost, however, will be higher since interest will be charged. You may refer to the Service Buyback Package for more information.

Are there limits on how much leave without pay may be counted for pension purposes?

Yes. The Income Tax Act places restrictions on the total periods of leave without pay that can be treated as pensionable during an individual's career. The maximum permitted is 5 years, excluding sick leave without pay. However, you may also be credited with an additional three years of leave without pay for parenting purposes. The 5-year maximum may also be exceeded for "on-loan" situations where the services of a public service employee are loaned out to another employer.

More information on the tax implications of taking a period of leave without pay is available in the Leave Without Pay Information Package.

Are you still covered under the Supplementary Death Benefit (SDB) Plan while you are away on leave without pay?

Yes. You remain covered under the Supplementary Death Benefit (SDB) Plan and contributions for the full period of leave without pay are owed upon your return to work.

When do you have to pay your pension and Supplementary Death Benefit (SDB) contributions for your period of leave without pay?

You are not required to pay your pension and supplementary death benefit contributions until you return to work following your period of leave without pay. At that time, the Pension Centre will advise you of the amounts owing and payment methods. If, however, you are approved on a period of leave without pay for “On loan” purposes, you will be required to pay your contributions in advance.

What payment options are available to you for your contributions?

You can make payments for your pension contributions at any time in a lump sum by personal cheques, postal or bank money order. Otherwise, your pension contributions will be recovered by salary deductions upon your return to work. In certain situations it may also be possible to use your RRSPs to pay your pension contributions. Payment options are discussed further in the Leave Without Pay Information Package.

Are you still covered under your other insurance benefit plans during a leave of absence?

Yes. Coverage under your various insurance benefit plans may be extended during a leave of absence. You may contact your compensation advisor for details on these other insurance benefits and available premium or contribution payment options. The following plans provide a summary of the conditions and reasons for which your coverage may be extended:

Do you continue to pay your service buyback payments while on leave without pay?

Yes. Service buyback payments must be made on an on-going basis during the period of your leave without pay. The use of the Payment Transmittal Form (PWGSC-TPSGC 570) is recommended when forwarding your payment(s) to the Government of Canada Pension Centre.

Can you accept a term position while you are on LWOP from your permanent job?

Yes and if you do you are considered to be in a dual employment situation. You must advise both your employers that you are working elsewhere as your benefits may be affected. Dual employment may also impact your requirement to contribute, timing of payment of deficiencies and your option to count periods of LWOP as pensionable. Further information on dual employment is available in the Leave Without Pay Information Package.

Getting Married or Reaching Common-law Status

Now that you are married or have reached common-law status, your new partner may be eligible for coverage under your pension and group insurance plans. The following information is intended to outline the plans under which your spouse may be covered.

You may want to know…

Is your new spouse or common–law partner covered under your insurance benefits plans?

Yes. Your new spouse or common–law partner may be covered under your various insurance benefit plans. For a summary of the types of coverage that are available, the time limits for enrolling new dependants and any steps that you must follow, refer to the following:

  • The Public Service Health Care Plan (PSHCP) provides optional health care coverage for members and their eligible dependants. You may apply to cover the following:
    • a person to whom you are legally married; or
    • a person with whom you have lived for a continuous period of at least one year and with whom you have publicly represented yourselves as a couple, i.e. a common–law partner.

    If your PSHCP coverage type is already Family because you have dependant children covered under the plan, an amendment application is not required. In the event you have Single coverage, however, an amendment application will be required. Amending your coverage type can be accomplished by completing and submitting either an electronic application using the secure online Public Service Health Care Plan Web Application on the ARCHIVED Compensation Web Applications (CWA) or, if you do not have access to CWA, you can complete and submit a paper application form (PDF, 95 KB) (Help for PDF fileThe WWW icon indicates a link that takes you outside the federal government's common web environment. to your designated compensation advisor.

  • The Public Service Dental Care Plan (PSDCP) provides members and their eligible spouse or common–law partner with coverage for specific dental services and supplies that are not covered under a provincial health and dental care plan.
  • The Public Service Management Insurance Plan (PSMIP) provides members with group life insurance, accidental death and dismemberment insurance, dependants' insurance and long-term disability insurance. Members are generally those who are employed in managerial or confidential positions.

As a plan member, you can apply for Dependants' Insurance (life and accidental death and dismemberment coverage) for the person to whom you are legally married or for the person with whom you have lived for a continuous period of at least one year and with whom you continue to live in a conjugal relationship. To designate a beneficiary under the PSMIP, you must complete and submit the Public Service Management Insurance Plan form.

What types of protection does your pension plan offer for your spouse or common-law partner?

Your pension plan offers several types of Survivor Benefits for your surviving spouse or common-law partner. For instance, your spouse or common-law partner may be entitled to an immediate allowance in the event of your death, whether you are employed or retired at the time. The survivor benefit is usually equal to half of your basic pension.

Should you provide information about your marital status or common-law relationship to the Government of Canada Pension Centre?

The Government of Canada Pension Centre recommends that you provide this information soon after your marital status changes or you enter a relationship of a conjugal nature. In the event of your death, the Pension Centre needs to know who your survivors are. When the Pension Centre has current information about your marital status or common-law relationship on hand, it can provide benefits to your survivor(s) more quickly. Additional information can be found under the Who is Entitled to Survivor Benefits section on the Treasury Board of Canada Web site.

Plan members who wish to provide information about their common-law relationship, may do so by completing the Statutory Declaration (PWGSC-TPSGC 2016) form and forwarding it to the Government of Canada Pension Centre.

Who is able to claim survivor benefits?

Survivor Benefits are payable to a spouse or common-law partner with whom you have lived in a relationship of a conjugal nature for at least one year, as long as that relationship began prior to your retirement from the public service.

Who is able to claim survivor benefits if you have both a legal spouse and a common-law partner?

At the time of death, if you have both a legal spouse and an eligible survivor with whom you have lived in a relationship of a conjugal nature, the survivor's benefit will be apportioned between them. Each survivor's share of the benefit will be based on the length of your cohabitation. Additional information may be found by consulting the Government of Canada Pension Centre.

If you get married after you retire, would your new spouse receive a survivor pension?

If you get married after you retire, your surviving spouse would not usually receive a Survivor Benefits. However, you can choose to provide a benefit to your spouse by reducing your own pension to cover the cost of this additional benefit. You can choose this option within one year from the date of your marriage, or from the date your pension begins, whichever is later. For more information please consult the Government of Canada Pension Centre.

Is there a minimum benefit guaranteed under the public service pension plan?

Under the pension plan, there is a guarantee of a minimum of five times your annual unreduced pension paid to your designated beneficiary under the Supplementary Death Benefit (SDB). If you do not name a beneficiary under the SDB Plan, then the benefit will be paid to your estate. For more information, refer to minimum benefit.

How does your marriage or common-law status affect the Supplementary Death Benefit (SDB)?

The Supplementary Death Benefit (SDB) provides a form of decreasing term life insurance protection, which is designed to cover members of the pension plan. Coverage begins when you become a member of the pension plan.

If you wish to name your new spouse or common–law partner as a beneficiary, you must complete a Naming or Substitution of a Beneficiary(PWGSC-TPSGC 2196).

Should you inform the Government of Canada Pension Centre if the person you've named as the beneficiary of your Supplementary Death Benefit moves?

Yes, you should notify the Government of Canada Pension Centre when your beneficiary moves. In the event of your death, if the Pension Centre has a current address for your beneficiary, the benefit can be paid more quickly. When you contact the Pension Centre, please have the following:

  • Pension number or Personal Record Identifier (PRI);
  • Name of beneficiary;
  • Your beneficiary's new address.

Disability

The following information is intended to help you understand your options in the event that you become disabled or suffer from a long-term illness.

You may want to know…

What type of leave can you take if you become disabled or suffer from a long-term illness?

If you have any paid sick leave remaining, you must first use that leave. Once your paid sick leave is exhausted, you can take a period of sick leave without pay. You may then be eligible for benefits under the Disability Insurance Plan or the Long-Term Disability Insurance (LTD) portion of the Public Service Management Insurance Plan (PSMIP). Both plans provide a monthly benefit for employees who are unable to work for a lengthy period of time because of a totally disabling illness or injury. For more information on these disability benefits, consult the Disability Insurance Plan FAQ's.

If you are away on sick leave without pay, can this time be counted as pensionable?

Yes. The first three months of your leave without pay is automatically counted as pensionable. You will be required to pay pension contributions for those first three months when you resume your regular scheduled hours of work. You may, however, choose to count or not to count the leave without pay that extends beyond the first three months as pensionable service.

Further information on the pension implications of taking a leave of absence can be found in the Leave Without Pay Information Package. General information regarding leave without pay can also be found from the Taking a Leave of Absence from the Public Service life event.

Who determines if you qualify for disability insurance benefits?

The insurers of each plan must determine if you are in a continuous state of incapacity due to illness or injury and are prevented from performing all the duties of your regular occupation. Currently, Sun Life Assurance Company is the insurer for the DI Plan and Industrial Alliance Insurance is the insurer for the PSMIP.

What insurance benefits can you retain if you become eligible for disability insurance benefits or retire on grounds of disability?

If you are a member of the Public Service Health Care Plan (PSHCP) and you become disabled, then your coverage will continue.

If you are a member of the Public Service Dental Care Plan (PSDCP) and you become disabled, then your employer-paid coverage will continue.

Are you entitled to leave if you become disabled due to an occupational illness or accident?

Yes. You may be entitled to Injury-on-Duty Leave with full normal pay for such reasonable period as is determined by your employer, where the disability is confirmed by a Provincial Workmen's Compensation Board pursuant to the Government Employees Compensation Act.

Are you still covered under the Supplementary Death Benefit while you are away on sick leave without pay?

Yes. You continue to remain covered under the Supplementary Death Benefit (SDB) for the entire period of leave without pay and you will be required to pay SDB contributions to cover the entire period of leave without pay. Further information can be found in the Leave Without Pay Information Package.

What pension options do you have if you retire on grounds of disability?

If you retire because of a disability and you have more than two years of pensionable service, you will receive an Immediate Annuity, regardless of your age.

Who determines if you qualify for retirement on grounds of disability?

In order to qualify, Health Canada must certify that your situation corresponds to the definition of disability:

Disability, under the public service pension plan, is a physical or mental impairment that prevents you from engaging in any employment for which you are reasonably suited by virtue of your education, training, or experience and that can reasonably be expected to last for the rest of your life.

What if you regain your health and are able to return to work?

If you are entitled to an immediate annuity due to disability and later regain your health, your immediate annuity is terminated and converted to a Deferred Annuity. If you then wish to convert the deferred annuity to an Annual Allowance, you may do so assuming you have not become re-employed as a contributor to the public service pension plan.

If you have granted someone a general Power of Attorney, can that person manage your pension affairs?

If you wish for another person to manage some of your pension affairs, an original, notarized, or a certified true copy of the general Power Of Attorney (POA) document bearing the original signature of the lawyer, notary, commissioner of oaths or justice of the peace must be sent to the Government of Canada Pension Centre. The person you name can then request address changes, direct deposit and choose a benefit on your behalf. However, a POA does not provide that person with the authority to change the recipient of a pension benefit or to change a beneficiary under the Supplementary Death Benefit Plan.

In order to protect our plan members, the Pension Centre cannot accept photocopies, faxes or scans of legal documents. Original POA documents will be returned to you by mail.

If you simply wish to allow someone to make enquiries and receive information about your pension matters, but not make decisions on your behalf, you can provide the Pension Centre with a written consent to that effect.

What if you begin receiving a Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) disability pension?

If you are receiving a pension under the public service pension plan and you become entitled to a disability pension under the CPP or QPP before you reach age 65, your basic pension under the public service pension plan will be reduced immediately. It is your responsibility to inform the Government of Canada Pension Centre immediately if you start to receive a disability benefit under the CPP/QPP, otherwise you will be required to repay any overpayments.

Becoming A Parent

Congratulations on becoming a parent! Whether through the birth or adoption of a child, the following information is intended to outline the programs, policies and plans under which you and your family may be covered.

You may want to know…

What documentation concerning your children should you provide to the Government of Canada Pension Centre?

You should provide proof of the age of your children to the Government of Canada Pension Centre as soon as possible. In the event of your death, the Pension Centre needs this information to provide benefits to your children. We recommend that you send the following documents:

  • Proof of age: A birth certificate issued by a civil authority, or a baptismal certificate. It must show the date of birth. In addition, the baptism must have taken place before your child was 5 years old;
  • Adoption papers;
  • Evidence of guardianship
Are your children covered under your insurance benefit plans?

Yes. Your children may be covered under your various insurance benefit plans as dependants. To find out what coverage can be extended to your children, the steps you must follow and the deadlines for enrolling new dependants, refer to the following information:

The Public Service Health Care Plan (PSHCP) provides optional health care coverage for members and their eligible dependants. Your dependant children, include legally adopted children and children of your spouse or common-law partner provided:

  • the child is under the age of 21;
  • the child is under the age of 25 and attending an accredited school, college or university on a full-time basis;
  • a mentally or physically impaired child, dependant upon you for support and maintenance, who become impaired while he or she was of age to be considered a dependant child under the plan.

If your PSHCP coverage type is already Family, an amended application is not required. In the event you have Single coverage, however, an amended application will be required. Amending your coverage type can be accomplished by completing and submitting either an electronic application using the secure online Public Service Health Care Plan Web Application on the ARCHIVED Compensation Web Applications (CWA) or, if you do not have access to CWA, you can complete and submit a paper application form (PDF, 95 KB) (Help for PDF fileThe WWW icon indicates a link that takes you outside the federal government's common web environment. to your designated compensation advisor.

The Public Service Dental Care Plan (PSDCP) provides members and their eligible dependants with coverage for specific dental services and supplies that are not covered under a provincial health or dental care plan.

To be eligible as a dependant child under either of the above plans, the child must be unmarried and dependant on you for support. The child must also be either under the age of 21, or under the age of 25 and a full-time student.

The Public Service Management Insurance Plan (PSMIP) provides group life insurance, accidental death and dismemberment insurance, dependants' insurance and long-term disability insurance to members. Members are generally those who are employed in managerial or confidential positions. As a plan member, you can apply for Dependant's Insurance (life and accidental death and dismemberment coverage) for your child or the child of your spouse or common-law partner.

To be eligible as a dependant child under the PSMIP, the child must be over 14 days of age, unmarried, not employed on a regular, full-time basis and dependant on you for support. The child must also be either under the age of 21, or under the age of 25 and a full-time student enrolled in a school or university.

What types of protection does your pension plan offer for your children?

In case of your death, your dependant children may be entitled to a Child Allowance under the public service pension plan. To be eligible for an allowance, your child must normally be under 18 years of age. However, children between 18 and 25 may receive allowances if they are enrolled in school or another educational institution full-time and have attended continuously since their 18th birthday or the date of your death, whichever occurred later. The allowance is equal to one tenth of your pension for each child (to a maximum of four tenths).

Can you take a leave of absence to care for your children? If so, how does it affect your pension?

You may be eligible to apply for a parental type leave. You can review your collective agreement and /or contact Human Resources to determine the types of leave without pay available to you. Information on the pension implications of taking a leave of absence to care for your children can be found in the Leave Without Pay Information Package.

Terminating Employment

If you are considering terminating your employment with the federal public service, the following information will help you understand your pension options under your public service pension plan and eligibility rules under your insurance benefit plans.

You may want to know…

Can you increase your pensionable service prior to terminating employment?

Yes, if you have eligible periods of prior service you may be able to buy back this service or transfer it from another plan to increase your pension. Any service buyback or request to transfer credits under Pension Transfer Agreements have to be made before you terminate employment. Depending on the type of service, there are various conditions that must be met. There are also impacts to consider, such as income tax implications. Additional information can be found in the Pensionable Service section.

If you have an existing service buyback that is not fully paid, you will have to continue making payments after you leave. For more information, refer to the Service Buyback Package.

What happens if you have not finished paying your pension or insurance benefit contributions for your period of leave without pay when you terminate employment?

Any pension and Supplementary Death Benefit contributions still owing for a period of leave without pay have to be paid when you terminate employment. Information on payment options for these contributions can be found in the Pension Entitlement Information Packages - Two or More Years of Pensionable Service.

Any insurance benefit premiums or contributions still owing for a period of leave without pay have to be paid when you retire. Contact your compensation advisor for further information.

What are your pension options upon leaving the public service?

Your options vary depending on your years of service, your age when you cease to be employed and your reason for leaving.

If you have at least 2 years of pensionable service, you may be entitled to the following options:

If you have less than 2 years of pensionable service, generally, you are only eligible for:

Note: If you leave the public service and have chosen one of the following pension benefit options: a return of contributions, a transfer value payment or transferred your accrued pension credits to another pension plan, you will be covered under the post-2013 pension plan rules if you are re-employed as a plan member on or after January 1, 2013. For more information, refer to the Re-employment section of the Treasury Board of Canada Secretariat Web site.

If you have Operational Service with Correctional Service Canada, you may be entitled to different pension options and should contact the Government of Canada Pension Centre (see our Contact Us page).

More detailed information on the termination of employment process, required forms and impact on insurance benefits can be found in the Pension Entitlement Information Packages.

What are your options if you accept an employment opportunity outside of the federal public service?

If you become employed outside of the federal public service, you may be eligible to transfer all or part of your accrued pensionable service to another pension plan through Pension Transfer Agreements regardless of the number of years of pensionable service that you have to your credit. Additional information can be found by consulting the Pension Portability Package.

What are your options if you accept an employment opportunity with the Canadian Forces or the Royal Canadian Mounted Police?

If you become employed with the Canadian Forces or the Royal Canadian Mounted Police you may be eligible to transfer your accrued pensionable service from the public service pension plan to their pension plan. Additional information can be found by consulting the Service Buyback Package.

How do you determine the value of your pension options?

Begin by looking at your most recent personal Pension and Insurance Benefits Statement, as it provides you with a summary of your entitlements and their approximate value. The Public Service Health Care Plan Web Application on the ARCHIVED Compensation Web Applications (CWA) can also help you estimate your yearly and monthly pension based on the information you enter.

How do you make a pension benefit option?

To make your option, you must complete a Pension Benefit Options Statement. When you have chosen a termination date, contact the Government of Canada Pension Centre (see our Contact Us page) and you will be provided with a personalized Pension Benefit Options Statement outlining your pension choices.

More detailed information on the termination of employment process, required forms and impact on insurance benefits can be found in the Pension Entitlement Information Packages.

Once you have chosen your termination date who should you notify?

You must notify your compensation advisor and the Government of Canada Pension Centre (see our Contact Us page) once you have chosen your termination date. This should be done three months in advance of your termination date, if possible.

Work Force Adjustment

The following information is intended to help you understand your options in the event that you are in a work force adjustment situation.

You may want to know…

What is Work Force Adjustment (WFA)?

For information about the work force adjustment (WFA) process and particular work force adjustment situations visit the Work Force Adjustment - Policies and Guidelines page on the Treasury Board Secretariat Web site.

How is my pension affected if I am in a work force adjustment situation?

If you are covered by a Work Force Adjustment Agreement or Directive, you may be eligible for a waiver of the normal pension reduction if the deputy head or his/her delegate certifies that all of the following conditions are met:

  • You are an employee whose services will no longer be required because of a WFA situation, and you have not received a guarantee of a reasonable job offer or a reasonable job offer; and
  • You choose an annual allowance; and
  • You have not received an educational allowance; and
  • You became a plan member on or before December 31, 2012 and you are between the age of 55 and 59 with two years or more of pensionable service to your credit and have been employed in the public service for at least 10 years on the date you cease employment; or
  • You became a plan member on or after January 1, 2013 and are between the age of 60 and 64 with two years or more of pensionable service to your credit and have been employed in the public service for at least 10 years on the date you cease employment.
How are my group benefits affected if I am in a work force adjustment situation?

Your Public Service Health Care Plan (PSHCP) and Public Service Dental Care Plan (PSDCP) will be affected as follows:

  • If you are laid-off under a WFA situation and have a lay-off priority status (unpaid), meaning you have not received a reasonable job offer and have come to the end of your 12-month paid surplus period
    • You will be eligible to maintain your PSHCP and PSDCP coverage for up to a one (1) year period by paying both the employee and employer share of the contributions.
  • If you resign and accept a Transitional Support Measure, a lump sum payment based on our years of service in the public service,
    • Your PSHCP and PSDCP benefit entitlements will stop on the day you cease to be employed.
  • If you accept a Transitional Support Measure, a lump sum payment based on our years of service in the public service, plus up to $11,000 for tuition and other related fees for up to two (2) years,
    • You are deemed to be on Leave without Pay and can continue your PSHCP and PSDCP coverage by paying both the employee and employer share of the contributions. Following these 2 years, if you do not receive a reasonable job offer, you will be eligible to maintain your PSHCP and PSDCP coverage for up to one (1) year by paying both the employee and employer share of the contributions.
  • If you are eligible to receive an immediate monthly pension at retirement age,
    • You may apply to continue your coverage under the PSHCP as a retired member.
    • You may also apply for coverage under the Pensioners' Dental Services Plan (PDSP) as a retired member when in receipt of your immediate monthly pension.

Your Disability Insurance (DI) Plan and Public Service Management Insurance Plan (PSMIP) will be affected as follows:

  • Coverage under the DI Plan and the Long-Term Disability (LTD) of the PSMIP will stop on the day you cease to be employed or on the date you start a period of unpaid priority status.
  • If you are in receipt of either DI or LTD benefits when laid-off under a WFA situation
    • Your entitlement will not end as long as you continue to meet the definition of totally disabled under the Plans. Benefits will stop on the earlier of your recovery, reaching age 65 or death.
  • If you are covered under PSMIP and choose to leave the public service or retire and are in receipt of an immediate monthly pension,
    • You may convert your life insurance and the life insurance of your dependants to an individual private life insurance policy. To do so you must make your own arrangements directly with Industrial Alliance Insurance and Financial Services Inc. within 31 days of retirement.
    • Your Accidental Death and Dismemberment Insurance and that of your dependants cannot be converted. Coverage stops upon termination of employment or on the date you start a period of unpaid priority status.
Additional Resources

The following links provide you with additional information and tools that may be useful to you if you find yourself in a WFA situation.

Who do I contact if I have more questions?

If you are in a work force adjustment situation, your department must assign a counsellor to work with you throughout the process. Please contact your employing department.

If you have pension-related questions after you have consulted this information, contact the Government of Canada Pension Centre.

Divorce or Separation

In the event that your marriage or relationship of a conjugal nature breaks down, it is important to understand the possible impact on your pension and insurance benefits plans. The following information outlines the potential consequences to your plans.

You may want to know…

Whom should you inform in the event of your separation or divorce?

You should inform the Government of Canada Pension Centre in the event of a Separation or Divorce. Please send copies of the following documents:

  • If you are separated – the separation papers;
  • If you are divorced – the divorce decree absolute;
  • If you are no longer in a common-law relationship – a letter advising the Government of Canada Pension Centre that the relationship has ended.

Please include your pension number on all documents. If you don't know your pension number, include your Personal Record Identifier (PRI) instead.

Can your pension benefits be divided in the event of divorce or separation?

Yes. The Pension Benefits Division Act provides for the division of the pension benefits that you have accumulated under the public service pension plan in the event of your marriage or common-law relationship breakdown.

Who is eligible for a division of pension benefits?

You or your spouse/common-law partner may apply after you have been separated for at least one year. However, if the application is based on a Court Order pertaining to divorce, annulment or separation, then the one-year separation requirement does not apply.

In the case of a common-law relationship, an application may be made only if your relationship lasted a minimum of one year.

In either case, you must have a Court Order or written agreement signed by you and your spouse that provides for the division of your pension benefits.

What steps are involved in obtaining a division of pension benefits?

Either you or your former spouse/common-law partner may apply for a pension benefits division.

How does a pension division affect your pension?

When you are in receipt of a pension, your pension will be reduced immediately upon completion of the division.

How are your survivor benefits affected?

If at the time of your death you were divorced, your former spouse will not be entitled to a survivor benefit.

If at the time of your death you were separated from your common-law partner, that partner's entitlement to a survivor benefit ends immediately upon separation and therefore, will not be entitled to a survivor benefit.

However, if at the time of your death you were separated from your legal spouse but not divorced, your spouse would be entitled to Survivor Benefits. However, if you were separated from your legal spouse and your former spouse had applied for a division of pension benefits, your former spouse would only be entitled to a survivor benefit in respect of the portion not covered by the division.

For more information, consult the Survivor Benefits section of the Treasury Board of Canada Secretariat Web site.

How is your Supplementary Death Benefit Plan (SDB) affected?

There is no impact for Supplementary Death Benefit purposes. However, your former spouse will still be entitled to receive your SDB benefit if you have named this person as your beneficiary.

To designate a new beneficiary, you must complete a new Naming or Substitution of a Beneficiary form.

Does your Will affect who receives your Supplementary Death Benefit (SDB)?

Wills, Agreements and Court Orders do not affect who receives your Supplementary Death Benefit. The person you named as your beneficiary for the Supplementary Death Benefit Plan receives your death benefit.

You can only name one beneficiary under this plan. If you wish to divide your death benefit among two or more people, you must name your estate as the beneficiary. You may then specify in your Will how it should be divided.

If you wish to cancel a previous designation without naming a person or an organization (religious, educational, charitable or benevolent), you must also name your estate as your beneficiary.

If you don't remember whom you named as the beneficiary of your Supplementary Death Benefit (SDB), how do you find out who it is?

For information about your beneficiary, please write or call the Government of Canada Pension Centre. Please note that the Pension Centre will ask you for your pension number or Personal Record Identifier (PRI).

Should you inform the Government of Canada Pension Centre if the person you've named as the beneficiary of your Supplementary Death Benefit (SDB) moves?

Yes, you should notify the Government of Canada Pension Centre when your beneficiary moves. In the event of your death, if the Pension Centre has a current address for your beneficiary, the benefit can be paid more quickly.

When you contact the Government of Canada Pension Centre, please have the following:

  • Pension number or Personal Record Identifier (PRI);
  • Name of beneficiary;
  • Your beneficiary's new address.
How are your insurance benefit plans affected?

Once you become divorced, your former spouse is no longer eligible for benefits under the following plans:

In the event there is a change in your relationship status such as a divorce or separation, you may wish to consider changing your Public Service Health Care Plan (PSHCP) coverage from Family to Single if there are no other dependants for whom PSHCP benefits are being provided.

Amending your coverage type can be accomplished by completing and submitting either an electronic application using the secure online Public Service Health Care Plan Web Application on the ARCHIVED Compensation Web Applications (CWA) or, if you do not have access to CWA, you can complete and submit a paper application form (PDF, 95 KB) (Help for PDF fileThe WWW icon indicates a link that takes you outside the federal government's common web environment. to your designated compensation advisor.

Once your coverage status has been updated you must then update your positive enrolment information with Sun Life. Changes can be made by visiting the Sun Life Web site. Alternatively, if you completed your positive enrolment on paper, changes can be made by completing the Positive Enrolment Change Form that was sent with your confirmation letter from Sun Life.

While the finalization of a divorce results in the automatic ineligibility of PSHCP claim payments on behalf of the divorced spouse, PSHCP benefits can continue if you are separated from your spouse or common-law partner.

How is your Public Service Management Insurance Plan (PSMIP) affected?

Any dependant child coverage ends once you become divorced. However, your former spouse will still be entitled to receive PSMIP benefits resulting from your death if you have named that person as your beneficiary.

To designate a new beneficiary, you must complete a new PWGSC-TPSGC 2028 - Public Service Management Insurance Plan form.

When Death Occurs

The following information is intended to provide you with an understanding of potential survivor and child entitlements under the public service pension plan. In the event of your death, your survivor or legal representative should immediately notify the Government of Canada Pension Centre and your compensation advisor.

You may want to know…

Are your family members protected in the event of your death?

If you have 2 or more years of pensionable service, your family is protected under your pension plan in the event of your death. Your eligible survivors maybe be entitled to Survivor Benefits and eligible children may be entitled to a Child Allowance.

If you have less than two years of pensionable service, your eligible survivors or estate is entitled to a Return of Contributions, plus interest.

Who is able to claim survivor benefits?

Survivor Benefits are payable to a spouse or common-law partner. If you are separated from your legal spouse but have a partner who may also qualify for an allowance, the benefit would normally be divided between the two applicants based on the period of cohabitation. Please contact the Government of Canada Pension Centre for additional information.

What documentation is required to make a claim for survivor benefits?

For a legal spouse, a copy of the marriage certificate is required. For a common-law relationship, sworn statements and other evidence that demonstrates the conjugal nature and the period of the relationship are required. Please contact the Government of Canada Pension Centre for additional information.

Are there children's allowances payable?

Your dependant children may be entitled to Child Allowance under the public service pension plan. To be eligible, your child must normally be under 18 years of age. However, children between 18 and 25 may receive allowances if they are enrolled in school or another educational institution full-time and have attended continuously since their 18th birthday or the date of your death, whichever occurred later.

A child's allowance is equal to one fifth of the survivor benefit to a maximum combined amount of four fifths of the survivor benefit. If there are more than four children, the maximum combined amount payable may be divided among all the eligible children.

What is payable to the children if there is no survivor benefit payable?

When there is no survivor benefit payable to a spouse or common-law partner, the child's allowance is equal to twice the above-mentioned amount or two fifths of the survivor benefit.

Are there any additional death benefits that will be paid out if you pass away?

Yes. The Supplementary Death Benefit (SDB) provides a form of decreasing term life insurance. The basic benefit is equal to twice your annual salary and decreases by 10% annually to a minimum of $10,000, starting at age 66. If you die as an active member of the public service pension plan, your SDB will never reduce below 33% of your annual salary (rounded up to the nearest $1,000) or below $10,000, whichever is greater.

The benefit is paid to your designated beneficiary for supplementary death benefit purposes or your estate and is calculated as follows:

Annual Salary x 2 (Rounded up to the nearest $1,000)

Under your pension plan, there is a minimum benefit guaranteed should there be no more eligible survivors or children. For more information, refer to minimum benefit.

Also, the Public Service Management Insurance Plan (PSMIP) provides group life insurance and accidental death and dismemberment insurance to members. Members are generally those who are employed in managerial or confidential positions. To determine if you are eligible to enroll in the PSMIP, contact your compensation advisor.

Should you inform the Government of Canada Pension Centre if the person you've named as the beneficiary of your Supplementary Death Benefit (SDB) Plan moves?

Yes. You should notify the Government of Canada Pension Centre when this person moves. In the event of your death, if the Pension Centre has a current address for this person, the benefit can be paid more quickly. When you contact the Pension Centre, please have the following information on hand:

  • Your Pension number or Personal Record Identifier (PRI);
  • The beneficiary's name, date of birth, and current address.

If your named beneficiary predeceases you, you should designate another beneficiary by completing another Naming or Substitution of a Beneficiary form.

Does your Will affect who receives your Supplementary Death Benefit (SDB)?

Wills, Agreements and Court Orders do not affect who receives your Supplementary Death Benefit. The person you named as your beneficiary for the Supplementary Death Benefit Plan receives your death benefit.

You can only name one beneficiary under this plan. If you wish to divide your death benefit among two or more people, you must name your estate as the beneficiary. You may then specify in your Will how the benefit should be divided.

If you wish to cancel a previous designation without naming a person or an organization (religious, educational, charitable or benevolent), you must also name your estate as your beneficiary.

What death benefits are available if you are slain while on duty?
  • The Public Service Income Benefit Plan for Survivors of Employees Slain on Duty provides your family with an income guarantee if your death was caused by an act of violence occurring in the course of or arising out of the performance of your duties as a federal public service employee. The plan is designed to supplement the income eligible survivors receive from various government sources, to guarantee an income level equal to the net salary or the net pension these employees would have received if alive.
  • The High Risk Travel Compensation Program (HRTCP) is designed to provide the survivors of public service employees on official travel status with compensation for private life insurance benefits not paid because death occurred as a result of war or other hostile activities.
  • Flying Accidents Compensation provides for the payment of compensation to employees or their dependants where injury or death is a direct result of a non-scheduled flight undertaken by an employee in the course of duty, or in the case of a civil aviation inspector where injury or death is a direct result of any flight undertaken for the purpose of conducting a flight test or monitoring commercial air operations on that flight.
Do any of your group benefit plans continue for your family after your death?

Public Service Health Care Plan (PSHCP) coverage does not automatically continue for a survivor. It is not required that a retired member be enrolled in the PSHCP prior to death in order for a survivor to be eligible to apply in his own right. An individual in receipt of a recognized survivor or children's pension benefit must apply and be approved for PSHCP coverage in order to ensure receipt of health benefits under the PSHCP. Plan and enrolment information can be found on the National Joint Council and the Public Service Health Care Plan (PSHCP) The WWW icon indicates a link that takes you outside the federal government's common web environment. Web sites.

Similar to the PSHCP, an individual in receipt of a survivor or child's pension benefits must also apply for dental coverage under the Pensioner's Dental Services Plan (PDSP), in order to obtain this benefit. Additional plan and enrolment information can be found on the TBS PDSP Web site.

For a summary of each group insurance benefit plan, visit Your Insurance Benefits at a Glance.

Preparing for Retirement

Congratulations! Planning for retirement is an exciting event in your life; however, it is also a time to make some important decisions. The following information is intended to provide you with a variety of tools and products to help you choose the benefits that are right for you.

You may want to know…

Can you increase your pensionable service prior to retirement?

You may have periods of prior service that you can buy back as a way of increasing your pension. Any service buyback has to be made before you retire.

If you have not finished paying for an existing service buyback, you will have to continue making payments after you leave. For more information, refer to the Service Buyback Package.

Is there a special working arrangement where you can reduce your workweek to transition into retirement?

Yes. If you are eligible to retire within two years, you can apply for pre-retirement transition leave. This is a special working arrangement where eligible employees apply for leave without pay to have their workweek reduced by up to 40 percent. Certain conditions apply and you have to submit an application to your Manager for approval. To learn more about the pre-retirement transition leave and the conditions that apply, please visit the Directive on Leave and Special Working Arrangements page on the Treasury Board of Canada Secretariat Web site.

More information can also be found in the Leave Without Pay Information Package.

What steps should you follow when preparing to retire?
  • Step 1: Take the time to familiarize yourself with your pension options.

    Your options vary depending on your age and your years of pensionable service when you leave the federal public service.

    If you have at least 2 years of pensionable service, you may be entitled to:

    If you have less than 2 years of pensionable service, generally you are entitled to:

    You may also be eligible to transfer all or part of your accrued pension credits to another pension plan through a pension transfer agreement regardless of the number of years of pensionable service that you have to your credit.

    Note: If you leave the public service and have chosen one of the following pension benefit options: a return of contributions, a transfer value payment or transferred your accrued pension credits to another pension plan, you will be covered under the post-2013 pension plan rules if you are re-employed as a plan member on or after January 1, 2013. For more information, refer to the Re-employment section of the Treasury Board of Canada Secretariat Web site.

    If you have accumulated operational service with Correctional Service Canada, you may be entitled to different pension options and should contact the Government of Canada Pension Centre. (See our Contact Us page)

    More detailed information on the retirement process, required forms, and impact on insurance benefits can be found in the Pension Entitlement Information Packages.

  • Step 2: Find out the value of each of your pension options.

    Examine your most recent personal Pension and Insurance Benefits Statement, as it provides you with a summary of your entitlements and their approximate value. The ARCHIVED Compensation Web Applications - Pension Calculator can also help you estimate your yearly and monthly pension based on the information you enter.

    The public service also offers several Retirement Courses which cover subjects such as: financial planning, the public service pension plan, legal aspects of retirement, health and emotional issues.

    Also available, the You and Your Pension Plan video series, based on the half-day retirement courses. They offer you the opportunity to learn more about specific pension and group benefit topics that are important to you with unlimited access to the videos anytime, anywhere.

  • Step 3: Find out which of your insurance benefit plans continue after retirement
    • Retired members of the public service pension plan are eligible for coverage under the Public Service Health Care Plan Directive when receiving a pension. If you choose to continue your PSHCP coverage as a retired member, please be aware that your ability to use your PSHCP benefit card may be temporarily suspended during the transition from an active member to a retired member. Learn more about what happens to your health care coverage when you retire.
    • Your Public Service Dental Care Plan coverage immediately ceases when you retire. However, as a retired member of the public service pension plan, you may have the option to enrol in the Pensioners' Dental Services Plan (PDSP). For details on how to enrol, refer to PDSP Enrolment Information.
    • Your Disability Insurance Plan coverage ends on the day your employment terminates. If, however, you become totally disabled before you retire or resign from the public service, your disability benefits will continue to be paid for as long as you remain totally disabled and have not reached your 65th birthday. Disability benefits cease when you reach age 65.
    • Your Supplementary Death Benefit (SDB) coverage continues if you are eligible to receive an immediate pension within 30 days of the date you terminate employment. If you do not receive an immediate pension, you may be eligible to elect to continue your SDB coverage.
    • If you are a member of the Public Service Management Insurance Plan (PSMIP), your life insurance and that of your dependants will cease when you retire, subject to a 31-day extension period. During that extension period, you will be able to obtain an individual private life insurance policy. You must make your own arrangements directly with Industrial Alliance Insurance and Financial Services Inc. to convert your insurance to a private policy.

    Accidental Death and Dismemberment and Long-term Disability insurances under the PSMIP cannot be converted to private policies, and terminate on the day you leave the public service.

  • Step 4: Estimate what your financial requirements will be when you leave the public service.

    Consult the Understanding Your Financial Needs section for additional information.

Once you have chosen your retirement date, who should you notify?

You must notify your compensation advisor and the Government of Canada Pension Centre (See our Contact Us page) once you have chosen your retirement date. This should be done at least 3 months in advance of your retirement date.

How do you choose a pension benefit option?

When you inform the Pension Centre of your retirement date, they will provide you with a Pension Benefit Options Statement which you must complete in order to choose your benefit option. Detailed information on the retirement process, required forms, and impact on insurance benefits can be found in the Pension Entitlement Information Packages.

Why does your bridge benefit under the public service pension plan stop at age 65?

The bridge benefit portion of your public service pension will stop when you reach 65 or earlier if you begin to receive Canada or Quebec Pension Plan disability benefits. This is due to the Canada Pension Plan/Quebec Pension Plan Coordination of contributions and benefits.

Is your pension benefit protected from inflation?

Yes. Your pension will be protected from losing its value as a result of inflation (increases in the cost of living) through protection from inflation for the rest of your life, unless you become re-employed and a contributor to the public service pension plan. This protection is referred to as the annual pension increase (indexing).

Does your retirement date affect the pension increases (indexing) you receive?

The Public Service Superannuation Act provides for annual increases, based on increases in the Consumer Price Index, on all retirement and survivor benefits. The increases usually begin January 1 following the year of retirement and are effective each year after that.

The first indexing amount will be prorated to reflect the number of full months remaining in the year following the month in which you retired. In subsequent years, you will be entitled to the full increase.

Example: If an employee retires on August 20, in January of the following he or she would be entitled to a pension indexing increase of 4/12 (for September to December).

What happens if you have not finished paying your pension contributions or benefit premiums for your period of leave without pay when you retire?

Any pension and Supplementary Death Benefit contributions still owing for a period of leave without pay have to be paid when you retire. Information on payment options for these contributions can be found in the Pension Entitlement Information Packages - Two or More Years of Pensionable Service.

Any insurance benefit premiums or contributions still owing for a period of leave without pay have to be paid when you retire. Contact your compensation advisor for further information.

If you have granted someone a general Power of Attorney, can that person manage your pension affairs?

If you wish for another person to manage some of your pension affairs, an original, notarized, or a certified true copy of the general Power Of Attorney (POA) document bearing the original signature of the lawyer, notary, commissioner of oaths or justice of the peace must be sent to the Government of Canada Pension Centre. The person you name can then request address changes, direct deposit and choose a benefit on your behalf. However, a POA does not provide that person with the authority to change the recipient of a pension benefit or to change a beneficiary under the Supplementary Death Benefit Plan.

In order to protect our plan members, the Pension Centre cannot accept photocopies, faxes or scans of legal documents. Original POA documents will be returned to you by mail.

If you simply wish to allow someone to make enquiries and receive information about your pension matters, but not make decisions on your behalf, you can provide the Pension Centre with a written consent to that effect.

Working Past Age 65

The following information will answer your questions as to what happens when a plan member under the public service pension plan continues to work past age 65.

You may want to know…

Do you continue to contribute to the public service pension plan after age 65?

Yes. If you continue to be employed in the federal public service you must continue contributing under the plan until your retirement date, or to the end of the calendar year in which you reach age 71. The salary and service accrued after age 71 will not be included in the calculation of your pension.

Even after you reach the maximum of 35 years of pensionable service, you continue contributing but at a lower rate. When you reach the maximum of 35 years of pensionable service, your current service contributions reduces to one percent of your salary. This lower contribution amount ensures Protection from Inflation for your future pension. Although you will not accrue additional years of pensionable service after reaching 35 years, the salary paid to you during this period may be used in the calculation of the best consecutive 5-year average salary on which your pension will be based.

How are public service pension plan benefits coordinated with the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP)?

The public service pension plan is coordinated through the Canada Pension Plan/Quebec Pension Plan Coordination so that employees do not have to set aside a greater proportion of their salary for retirement savings. Your public service pension benefits include a lifetime pension and a temporary bridge benefit (previously referred to as the CPP/QPP reduction) which is payable until the first of the month following your 65th birthday, or immediately when you begin to draw disability benefits. If you are still working at age 65, the bridge benefit will not be paid upon retirement. Please see Reaching age 65 and Retirement Income Sources for more information about the coordination between the plans.

If you begin receiving retirement benefits from CPP or QPP, will your contributions under the public service pension plan change?

No. Your contributions will not change. Your contributions under the public service pension plan are not dependant upon whether you pay CPP or QPP contributions or whether you are in receipt of CPP or QPP benefits.

If you continue to work past age 65 and you retire at age 71, is your pension calculated using the same formula as for a plan member retiring at an earlier age?

Yes. Your public service pension will be calculated using the same basic formula:

Lifetime pension

When you retire, you will receive a lifetime pension. Your annual lifetime pension is based on your average salary and years of pensionable service, as follows:

  • 1.375%1
  • ×
  • Your average salary
    up to the AMPE2
  • ×
  • Your years of pensionable
    service (maximum 35 years)

PLUS

  • 2%
  • ×
  • Your average salary
    in excess of the AMPE2
  • ×
  • Your years of pensionable
    service (maximum 35 years)

Note: If your pension includes part-time service, the benefits are adjusted to reflect the part-time assigned hours of work compared to the full-time hours of the position.

Bridge benefit

Plan members who retire at age 65 or after do not receive the bridge benefit.

  • 0.625%3
  • ×
  • Your average salary
    up to the AMPE2
  • ×
  • Your years of pensionable
    service (maximum 35 years)
Footnotes
Footnote 1

This percentage applies if you will reach age 65 in 2012 or later, i.e. you were born in 1947 or later. The percentages if you were born before 1947 are indicated below:

  • Before 1943: 1.3%
  • 1943: 1.315%
  • 1944: 1.330%
  • 1945: 1.345%
  • 1946: 1.360%

Return to footnote 1 referrer

Footnote 2

This value, set by the Canada Pension Plan, is the average maximum pensionable earnings for your year of retirement.

Return to footnote 2 referrer

Footnote 3

This percentage applies if you will reach age 65 in 2012 or later, i.e. you were born in 1947 or later. The percentages if you were born before 1947 are indicated below:

  • Before 1943: 0.700%
  • 1943: 0.685%
  • 1944: 0.670%
  • 1945: 0.655%
  • 1946: 0.640%

Return to footnote 3 referrer

Is there a co-relation between the amount of retirement benefits payable under the CPP or QPP and the adjustment to your public service pension at age 65?

No. Despite the coordination between the plans, the public service pension plan and the CPP or QPP are separate plans. The benefits provisions of each plan are different and the benefit amount is calculated independently of each other. The formula for the bridge benefit portion of your public service pension is the same whether or not you pay CPP or QPP contributions or receive CPP or QPP benefits. The bridge benefit calculation and the stop date are based on the fact that during your pensionable service you paid a lower rate of contributions under the public service pension plan on the salaries for which you were required to pay CPP or QPP contributions. For further information on the coordination of these plans, please consult the information on the Canada Pension Plan/Quebec Pension Plan Coordination.

Are you still covered by the Supplementary Death Benefit provisions after age 65?

Yes. You will continue to be covered by the Supplementary Death Benefit (SDB) provisions. This life insurance is equal to twice your annual salary, payable to your designated beneficiary or to your estate upon your death. The coverage decreases by 10 per cent each year starting at age 66 to a minimum of $10,000 by age 75. If you are still employed in the public service past age 65, the minimum coverage is the greater of $10,000 or one third (1/3) of your annual salary. After you reach age 66, your contributions will decrease as your coverage declines.

What happens if you become employed or re-employed in the federal public service past age 71?

If you become employed or re-employed in the public service past age 71, you cannot contribute to the public service pension plan after the end of the calendar year in which you reach age 71. If you have already retired and begin working again after age 71, your monthly pension (including indexing) will temporarily cease to be paid and it will be reinstated once you stop working. Please see Re-employment After Retirement for more details.

What happens to your Public Service Health Care Plan (PSHCP) and Public Service Dental Care Plan (PSDCP) coverage if you work past age 65?

There are no age restrictions on participation under either the PSHCP or the PSDCP. As long as you remain employed, you can retain your coverage as an employee under both plans.

Will you still be covered by the Disability Plan or the Long-Term Disability Insurance Plan after age 65?

No. The Disability Plan and the Long-Term Disability Insurance Plan are not available after age 65.

How is your coverage under the Public Service Management Insurance Plan (PSMIP) affected if you continue to work after age 65?

If you are entitled to PSMIP life insurance, you may retain your coverage as long as you continue working in the federal public service. However, coverage for basic and supplementary life insurance will be reduced at a rate of 10 per cent per year starting at age 66 to a minimum of no less than 10 per cent of your adjusted annual salary.

The age-related reduction at age 66 does not apply if you are entitled to employer-paid basic life insurance. Once you decide to retire, coverage may be converted to a private life insurance contract through arrangements you can make with the insurer, Industrial Alliance The WWW icon indicates a link that takes you outside the federal government's common web environment..