Retired Member

Life Events

Newly Retired

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?

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:

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.

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.

What should you consider if you plan to return to the public service?

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 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 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 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%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

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%3
  • ×
  • Your average salary
    up to the AMPE2
  • ×
  • Your years of pensionable
    service (maximum 35 years)
Total Pension

Your total pension (lifetime pension and bridge benefit) will be equal to 2 per cent of your average salary of your five consecutive years of highest paid service multiplied by the number of years of your pensionable service (maximum 35 years).

Footnotes 1
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

When can you expect to receive your first pension payment?

The Pension Centre normally issues your first pension payment by direct deposit within 45 calendar days after the date of retirement, provided that your personnel office has submitted the required information prior to your retirement.

How is your pension benefit paid?

The benefit is deposited in your bank account on the third last banking day of the month.

Where can you find information about the deductions taken from your pension payment?

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

How can you receive pension documents electronically?

You can receive your tax slips, Direct Deposit Statements, and future editions of the Annual Pensioners' Statement and Your Pension and Benefits Liaison newsletter online through epost - Canada Post's secure online delivery service. For more information on how to register, visit the Register for epost page.

Why does your bridge benefit under the public service pension plan 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 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 Coordination.

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 the Re-employment After Retirement section.

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 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 coverage under the Disability Insurance Plan 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.

Reaching Age 65

The public service pension plan is coordinated with the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP). “Coordination” means that the public service pension plan takes into account the contributions and benefits that a plan member will pay into and receive from CPP or QPP. As a result of this coordination, the public service pension plan provides for the payment of a lifetime pension payable until your death and a temporary bridge benefit payable until age 65 or until you start receiving disability benefits at any age. The following information is intended to help you understand your lifetime pension and bridge benefit and the coordination of the public service pension plan contributions and benefits with those available from the CPP or QPP.

You may want to know…

Why are the contribution rates under the public service pension plan co-ordinated with those under the CPP or QPP?

Your public service pension plan is coordinated with the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP). When CPP and QPP were introduced on January 1, 1966, the federal government, like most Canadian employers offering a pension plan for their employees, decided to coordinate the new CPP and QPP with the public service pension plan so that its employees would not have to set aside a greater proportion of their salary for retirement savings. Since contributions were coordinated, pension benefits also had to be coordinated.

As a result, your public service pension consists of the following:

A lifetime pension – the permanent portion of your pension payable from the date your pension begins until your death; and A bridge benefit – a temporary amount payable from the date your pension begins until age 65 (earlier if you start receiving CPP or QPP disability benefits).

Consult the Canada Pension Plan/Quebec Pension Plan Coordination for more information.

When will your bridge benefit cease?

If you retire before age 65, you will receive a bridge benefit payable until age 65. However, if you begin receiving a CPP or QPP disability pension before age 65, your bridge benefit under the public service pension plan will cease immediately. It is your responsibility to inform the Government of Canada Pension Centre if you start to receive a disability pension under the CPP or QPP. If you omit to inform the Government of Canada Pension Centre, you will be required to repay any overpayments.

If you retire after age 65 or are receiving CPP or QPP disability benefits, the bridge benefit is not paid.

Does your bridge benefit cease before age 65 if you choose to receive your CPP or QPP benefit at an age other than 65?

The bridge benefit will continue to be paid until age 65 even if you choose to receive an early or late CPP or QPP retirement benefit, before or after age 65. However, it is important to note that by receiving the CPP or QPP pension early, you will receive a reduced amount that continues to be paid at the reduced rate after age 65. As a result, you will notice a decrease in your total pension income at age 65, when your bridge benefit ends, because you are in receipt of an early (reduced) CPP or QPP benefit. The bridge benefit will stop on the first of the month following your 65th birthday or on the date that you become entitled to a CPP or QPP disability pension.

What is the formula for calculating your lifetime pension and bridge benefit under the public service pension plan?

The public service pension plan provides for the payment of a lifetime pension payable until your death and a temporary bridge benefit payable until age 65 (earlier if you start receiving CPP or QPP disability benefits).

Lifetime pension

When you retire, you will receive a 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%4
  • ×
  • Your average salary
    up to the AMPE5
  • ×
  • Your years of pensionable
    service (maximum 35 years)

Plus

  • 2%
  • ×
  • Your average salary
    in excess of the AMPE5
  • ×
  • 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

Note: Plan members who retire after age 65 or are already receiving CPP or QPP disability benefits do not receive the bridge benefit.

  • 0.625%6
  • ×
  • Your average salary
    up to the AMPE5
  • ×
  • Your years of pensionable
    service (maximum 35 years)

Additional information and examples can be found in the section Pension Formula: Lifetime Pension and Bridge Benefit.

Footnotes 2
Footnote 4

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 4 referrer

Footnote 5

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

Return to footnote 5 referrer

Footnote 6

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 6 referrer

Is the indexing payable on your pension affected when the bridge benefit ceases at age 65?

The indexing amount payable on your public service pension before age 65 is directly related to the total amount of the public service pension you receive, that is, your lifetime pension plus the bridge benefit. When your bridge benefit ceases, whether at age 65 or if you start receiving CPP or QPP disability benefits, the indexing is calculated on your lifetime pension amount only, resulting in a reduction in the indexing payable.

Is the pension benefit payable to your survivors affected at age 65, when the bridge benefit normally ends?

Survivor benefits are normally equal to half of your lifetime pension and bridge benefit. The Survivor Benefits are calculated at this rate even after the bridge benefit ceases which is normally at age 65. Your survivor can receive survivor benefits under the CPP or QPP and also receive a full survivor benefit under the public service pension plan.

What happens when Quebec residents reach the age of 65 in relation to the Régie de l'assurance maladie du Québec (RAMQ) coverage?

When Quebec residents reach the age of 65 they are automatically covered under the drug insurance plan of the Régie de l'assurance maladie du Québec (RAMQ) The WWW icon indicates a link that takes you outside the federal government's common web environment.. They do not have to contact the Régie to register. However, a member can choose to be covered by both RAMQ and the PSHCP.

For further information on coverage under the RAMQ plan or to find out how to cancel your enrolment in this plan, please visit the Régie de l'assurance maladie du Québec (RAMQ) The WWW icon indicates a link that takes you outside the federal government's common web environment. site.

Re-employment After Retirement

The following information is intended to help you understand the impact re-employment may have on your pension.

You may want to know…

What happens if you become re-employed in the federal public service after you have retired?

If you are re-employed in a position that does not require you to contribute to the public service pension plan, you can receive both your pension and the salary from your new position. For more information about the public service pension plan, consult the Re-employment section of the Treasury Board of Canada Secretariat Web site.

However, if you choose to become re-employed in the public service and begin contributing to the pension plan, your monthly pension(including indexing) will cease, as you are unable to receive a pension under the public service pension plan and accumulate public service pension plan service simultaneously. Your monthly pension will only be reactivated once you stop contributing to the public service pension plan, and will most likely be recalculated based on your combined pension credits (those accumulated during both your initial period of employment and your re-employment period). The indexing amount payable will be based on your most recent date of retirement. Additional information can be found by consulting the Government of Canada Pension Centre's Annuitant Benefits Booklet and Effects of Re-employment on Indexing Benefits.

What happens if you are re-employed in the public service after a transfer value has been paid to you?

If you become re-employed in the public service and are contributing to the public service pension plan, you can elect to purchase the pensionable service for which you received a Transfer Value benefit. Note that this option is available on a one-time basis only and a one-year deadline applies. Additional information may be found by visiting the Archived Reinstatement of Transfer Value Service document.

However, plan members who opted for a transfer value before January 1, 2013 and became re-employed in the public service on or after January 1, 2013 would not remain covered under the pre-2013 pension plan terms. For more information, visit the Re-employment section of the Treasury Board of Canada Secretariat Web site

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…

You were married or lived in a common-law relationship prior to your retirement. Will your spouse or common-law partner be entitled to a survivor benefit upon your death?

Your spouse will normally be entitled to a survivor benefit if you were married before you retired from the public service.

If you lived in a relationship of a conjugal nature before retirement and for at least one year before your death, your common-law partner may be entitled to a survivor benefit. Plan members who wish to provide information about their common-law relationship may do so by completing the Statutory Declaration form and forwarding it to the Government of Canada Pension Centre.

You married after your retirement. Will your new spouse be entitled to a survivor benefit upon your death?

If you marry after retirement, your surviving spouse is not normally entitled to a pension. However, you may elect to provide your spouse with a benefit by taking a reduction in your own pension. This option must be elected for within one year of marriage or one year from the commencement of your pension, whichever is later.Consult the Survivor Benefits section for more information.

If you are receiving a survivor benefit under the public service pension plan, does that benefit cease if you remarry?

No. A survivor pension is payable for life and is not affected by remarriage.

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

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.

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

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 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 for coverage for the person to whom you are legally married, for the person with whom you have lived for a continuous period of at least one year, or for whom you have publicly represented as your spouse and with whom you continue to live as if that person were your spouse.

The Pensioners' Dental Services Plan (PDSP) is a voluntary dental services plan that provides eligible pensioners and their eligible family members (including survivors) with specific dental services and supplies that are not covered under a provincial or territorial health or dental care plan.

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. The following information outlines the potential consequences to your benefits.

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.

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.

Consult the Separation or Divorce section of the Treasury Board of Canada Secretariat Web site for more information.

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.

These steps are described in further detail in the Division of Pension Benefits Package. Additional information is found under the Pension Benefits Division Act and the Pension Benefits Division Regulations.

How does a pension division affect your pension?

If 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.

Can your pension benefit be diverted for spousal or child support?

Yes. Part II of the Garnishment, Attachment and Pension Diversion Act (GAPDA) permits pension benefits payable to public service plan members to be diverted to applicants possessing a valid financial support court order. The applicant must send the original or certified true copy of the court order along with the completed Application for Diversion from a Public Service Pension in Accordance with Part II of the "Garnishment, Attachment and Pension Diversion Act" (PWGSCTPSGC 2460) to the address indicated on the application.

If your salary was being garnished while you were employed, will the garnishment continue if you become entitled to a pension benefit?

A new application under Part II of the GAPDA provisions must be submitted for your pension benefits to be diverted, even if your salary was subject to continuing garnishment. The applicant is responsible for completing and forwarding a new application with the original or certified true copy of the court order to the address indicated on the application order, in order for the financial support to continue.

How can your pension diversion amount be amended or stopped?

The pension diversion amount can be amended or stopped with an amended court order.

How is your Supplementary Death Benefit (SDB) affected?

There is no impact for Supplementary Death Benefit purposes. However, your former spouse will still be entitled to receive your SDB 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.

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;
  • 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 from a spouse or common-law partner, you may wish to consider changing your Public Service Health Care Plan (PSHCP) and Pensioners' Dental Services Plan (PDSP) coverage from Family to Single if there are no other dependants for whom PSHCP or PDSP benefits are being provided.

Please contact the Pension Centre to amend your PSHCP and PDSP coverage type. For the PSHCP you must also 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.

Living Outside of Canada

The following information is intended for retired members who live outside of the country. If you move outside of Canada, please advise the Government of Canada Pension Centre of your new address and to determine if your move will affect your income tax.

You may want to know…

Can you receive your pension cheque at an address outside of Canada?

Yes. Payments are made in the currency of your country of residence. However, if you choose to have your pension cheque by direct deposit to a bank in Canada, it will be issued in Canadian currency.

Can the direct deposit of your pension cheque be sent to a bank outside of Canada?

Yes. If you are living in Australia, Europe, New Zealand, United Kingdom, United States or Switzerland, your pension cheque can be sent by direct deposit. Visit the Foreign Direct Deposit site to obtain the required direct deposit enrolment forms.

How is your pension income reported for income tax purposes now that you live outside the country?

Your pension income as a non-resident is reported on an NR4 tax statement. If a portion of your pension income is paid under the Retirement Compensation Arrangement (RCA), you will also receive an NR4-RCA income tax statement. Please note, however, that the amount of total income tax paid on all pension benefits (from both the Public Service Superannuation Act and RCA) will be reported only on the NR4 statement.

If you move to another country part way through the year, your income would be reported on both a T4A and a NR4.

How is the amount deducted for income tax determined now that you are living outside of Canada?

The amount deducted for income tax is determined by your country of residence in accordance with the Canada Revenue Agency CRA) non-resident tax guidelines.

Can you get a tax exemption or reduction in the amount of non-resident tax that is withheld from your pension?

The Government of Canada Pension Centre is required to withhold tax according to your country of residence. Any exemption or reduction in the amount of tax to be withheld must be authorized in writing by CRA. Please contact the International Tax Services Office, CRA if you wish to pursue an exemption or reduction.

Does your Public Service Health Care Plan (PSHCP) coverage continue now that you are living outside of Canada?

Yes. PSHCP coverage can continue; however, you must complete an amended application to ensure coverage is continued at the desired level. To obtain the required documentation and to verify to what limits reimbursements can be made, contact the Government of Canada Pension Centre. Claims will be paid in the currency of the country where you reside.

Does your Pensioners' Dental Services Plan (PDSP) coverage continue now that you are living outside of Canada?

Yes. PDSP coverage will continue and the reimbursement will be based on reasonable and customary charges in the area where the services were performed. Claims will be paid in Canadian funds.

When Death Occurs

The following information is intended to provide you with an understanding of the potential survivor and child entitlements under the public service pension plan. In the event of death, the Government of Canada Pension Centre should be notified immediately.

You may want to know…

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

Your pension plan offers several types of protection for your family. For instance, your eligible survivors and eligible children may be entitled to Survivor Benefits and Child Allowances.

Who is able to claim survivor benefits?

Survivor Benefits are payable to a surviving spouse or common-law partner. In the event that 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. Additional information may be obtained by consulting the Government of Canada Pension Centre.

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 (same or opposite sex) partner, sworn statements and other evidence that demonstrates the conjugal nature and the period of the relationship are required. Additional information may be found by visiting the Government of Canada Pension Centre.

Are there any additional death benefits that will be paid out?

Yes. The Supplementary Death Benefit (SDB) provides a form of decreasing term life insurance – the basic benefit is equal to twice your annual salary when you retire and it decreases by 10% annually starting at age 66 to a minimum of $10,000. The benefit is paid to your designated beneficiary and is calculated as follows:

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

Under the public service pension plan, there is a minimum benefit guarantee should there be no more eligible survivors or children. For more information, refer to minimum benefit.

Are your survivors covered under any benefit plans in the event of your death?

Your survivors may be eligible to enroll for coverage under the Public Service Health Care Plan (PSHCP) and the Pensioners' Dental Services Plan (PDSP) in the event of your death.