The following information is intended to provide you with an understanding of your pension entitlements and availability of insurance coverage as a member of the public service pension plan.

You may want to know…

• If you have not yet chosen a benefit, what are your pension benefit options now that you are retired from the public service?
• How do you make a benefit option if you have not already done so?
• Is your pension benefit deposited directly into your bank account?
• What is the formula for calculating your pension benefit?
• When can you expect to receive your first pension cheque?
• Where can you find information about the deductions taken from your pension cheque?
• Why does your public service pension plan bridge benefit stop at age 65?
• Is your pension benefit protected from inflation?
• What happens if you haven't finished paying for a period of prior service (Service Buyback) when you retire?
• What happens if you have not finished paying your pension contributions or benefit premiums or contributions for your period of leave without pay when you retire?
• Does your health care coverage continue now that you are retired?
• Does your dental coverage continue now that you are retired?
• Does your Supplementary Death Benefit (SDB) coverage continue now that you are retired?
• Does your Disability Insurance (DI) Plan coverage continue now that you are retired?

If you have not yet chosen a benefit, what are your pension benefit options now that you are retired from the public service?
Your benefit options vary depending on your age and your years of pensionable service when you leave the public service. If you have at least 2 years of pensionable service, you may be entitled to the following options:

• Transfer Value
• Deferred Annuity
• Annual Allowance
• Immediate Annuity

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

• Return of Contributions

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

How do you make a benefit option if you have not already done so?
To make your option, you must complete your retirement documents and forward them to the Government of Canada Pension Centre (see our Contact Us page). If you have not received your retirement documents or have misplaced them, contact the Pension Centre.

You should remember that you have one year from the day you leave the public service to choose your benefit option. If you do not choose your option during this period, you are considered to have chosen a Deferred Annuity. Subsequently, you may choose to receive an Annual Allowance.

Additional information can be found under the A Deferred Annuity, an Annual Allowance or a Transfer Value … How to Choose section of the Treasury Board of Canada Secretariat Web site.

Is your pension benefit deposited directly into your bank account?
As part of the Government of Canada’s efforts to reduce paper consumption, the Pension Centre will now be issuing all it’s payments by direct deposit. If you have not already signed up for direct deposit, we encourage you to do so as soon as possible. Simply call or send a written request along with a void cheque to the Pension Centre and your pension payment will be deposited directly into your bank account. Please include your pension number on both documents. If you live outside Canada, consult the Foreign Direct Deposit site to find a list of participating countries.

What is the formula for calculating your pension benefit?
The public service pension plan provides a lifetime pension payable until your death and a temporary bridge benefit payable until age 65.

Generally, the formula for calculating your pension is as follows:

Lifetime pension

Your annual lifetime pension is based on your average salary of your five consecutive years of highest paid service and your years of pensionable service, as follows:

1.375%^*

X

Your average salary up to the AMPE^**

X

Your years of pensionable service (maximum 35 years)

PLUS

2%

X

Your average salary in excess of the AMPE^**

X

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.

^*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%

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

Bridge benefit

If you retire before age 65, you may also receive a bridge benefit payable until age 65 or until you become entitled to CPP or QPP disability benefits, whichever occurs first. The bridge benefit is calculated as follows:

0.625%^***

X

Your average salary up to the AMPE^**

X

Your years of pensionable service (maximum 35 years)

^***This bridge benefit factor applies if you will reach age 65 in 2012 or later, i.e. you were born in 1947 or later. If you were born before 1947, the applicable factor is indicated below:

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

Total Pension

Your total pension (lifetime pension and bridge benefit) will be equal to 2 per cent of your average salary.

When can you expect to receive your first pension cheque?
The Pension Centre normally issues your first pension cheque within 45 calendar days after the date of retirement, provided that your personnel office has submitted the required information prior to your retirement.

Where can you find information about the deductions taken from your pension cheque?
You can find a list of deductions that are or can be taken from your pension cheque in the Deductions Information Kit. Once on the deductions page, you may select any deduction to obtain a more detailed explanation.

Why does your public service pension plan bridge benefit stop at age 65?
The bridge benefit portion of your public service pension stops when you reach 65 or earlier if you begin to receive Canada or Quebec Pension Plan (CPP or QPP) disability benefits. This is due to the coordination of contributions and benefits between the public service pension plan and the Canada Pension Plan/ Quebec Pension Plan.

Is your pension benefit protected from inflation?
Yes. Your Indexation ensures that your pension will be protected from losing its value as a result of inflation or increases in the cost of living. However, if you become re-employed in the public service and begin contributing to the public service pension plan, your monthly pension (including indexing) will cease. This is because you cannot receive a pension and accumulate pensionable service under the public service pension plan simultaneously. For more information on the effects of re-employment, refer to Re-employment After Retirement.

What happens if you have not 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.

What happens if you have not finished paying your pension contributions, benefit premiums or contributions 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 must be paid when you retire. Information on payment options for these contributions can be found in the Deficiencies in contributions section of the Pension Entitlement Information Package - Two or More Years of Pensionable Service.

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

Does your health care coverage continue now that you are retired?
Yes. Public service pension plan retired members are eligible for coverage under the Public Service Health Care Plan (PSHCP) when receiving a public service 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 inactivated during the transition from an active member to a retired member.

In the event that a claim is declined by your pharmacist, using your PSHCP benefit card or by Sun Life using a paper claim form, during this transition period, re-submit the claim to Sun Life once you notice that the PSHCP deduction has been taken from your pension cheque and your claim will be re-processed.

If you require maintenance medication such as insulin, you may wish to purchase a sufficient quantity prior to retiring or pay out of pocket for your medication and submit your claim at a later date. For more information contact the Sun Life Call Centre:
National Capital Region: 613-247-5100
Anywhere in North America: 1-888-757-7427 (toll free)

Consult the Health Care Plan at a Glance to learn more about what happens to your coverage when you retire.

Note: Some federal agencies, Crown corporations and territorial governments do not participate in the public service group insurance benefit plans. However, former employees of those agencies or corporations may be eligible to participate in these plans as retired members.

Does your dental coverage continue now that you are retired?
Your Public Service Dental Care Plan coverage immediately ceases when you retire. However, as a public service pensioner you may have the option to enrol in the Pensioners' Dental Services Plan (PDSP). For details on how to enrol, refer to the PDSP Enrolment Information.

You are not eligible for this coverage if you were affected by a divestiture or withdrawal of an organization as a participating employer under the public service pension plan.

Note: Some federal agencies, Crown corporations and territorial governments do not participate in the public service group insurance benefit plans. However, former employees of those agencies or corporations may be eligible to participate in these plans as retired members.

Does your Supplementary Death Benefit (SDB) coverage continue now that you are retired?
Your Supplementary Death Benefit (SDB) coverage continues if you are eligible to receive an immediate pension within 30 days of your departure. If you do not receive an immediate pension, you must elect to continue your SDB coverage. The deadline to elect to continue as a participant is 30 days after ceasing to be employed.

Note: Some federal agencies, Crown corporations and territorial governments do not participate in the Supplementary Death Benefit Plan and as such, former employees of those agencies or corporations cannot participate in that plan as retired members.

Does your Disability Insurance Plan coverage continue now that you are retired?
Your Disability Insurance Plan coverage ends on the day your employment terminates. If disability benefits are approved before you retire or resign from the public service, they will continue to be paid for as long as you remain totally disabled and have not reached age 65. Disability benefits cease when you reach age 65.