Scenarios—Canadian Armed Forces pensions

Select the scenario that most closely resembles your own situation and see how your Canadian Armed Forces (CAF) pension can help you plan your financial future. These estimates are based on assumptions.

• Regular Force members who enrolled before March 1, 2007
• Regular Force members who enrolled on or after March 1, 2007
• Reservists in the Reserve Force Pension Plan
• Reservists in the Regular Force Pension Plan
• Assumptions

Regular Force members who enrolled before March 1, 2007

Scenario 1: Master Corporal Tim Arnott, serving on an Indeterminate Engagement (IE 20) and wondering if he should buy back his 4 years of previous service in the Royal Canadian Mounted Police (RCMP)

Scenario 2: Corporal David Jones, leaving the CAF after 7 years and curious about his accrued pension benefit

Scenario 3: Captain Lisa Aldridge, planning to serve for 25 years in the CAF and to retire at a young age

Scenario 4: Master Warrant Officer Francois Landau, serving on an Indefinite Period of Service (IPS) and wondering if he should buy back his 12 years of previous service in the Public Service

Scenario 5: Captain Laurie-Ann Lee, nearing the end of a long career with the CAF and can retire under the old plan rules which were in place prior to March 1, 2007.

Scenario 6: Major Pat Smith, thinking about accepting a new term of service but wants to know the impact on his pension

Scenario 7: Sergeant Steve Parker, close to retirement and thinking about buying back his 3 years of previous service in the Public Service so his pension is indexed at an earlier age

Scenario 8: Petty Officer 1st Class Elizabeth Chan, eligible to receive a pension upon release because she had bought back previous service prior to becoming disabled

Scenario 1: Master Corporal Tim Arnott, serving on an Indeterminate Engagement (IE 20) and wondering if he should buy back his four years of previous service in the Royal Canadian Mounted Police

Master Corporal Tim Arnott

• Age: 42
• Average salary: $55,320
• Joined the CAF: April 1, 1994
• 15 years of pensionable service
• Serving on an IE 20

Master Corporal Arnott joined the CAF when he turned 27, after serving in the RCMP for 4 years. He is grandfathered under the old plan rules in place prior to March 1, 2007.

Master Corporal Arnott's goal is to retire from the CAF with a full pension and pursue a new career as a teacher. He has the option of buying back his 4 years of service from when he served with the RCMP and he wants to know the impact on his pension. If he decided to buy back the 4 years, the cost to him would be $19,275.

Master Corporal Arnott's pension benefits

Master Corporal Arnott can retire with a full (unreduced) pension as of April 1, 2014. In addition to his lifetime pension amount, he will receive a bridge benefit until he reaches age 65 (if he becomes entitled to a Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) disability pension, the bridge benefit will stop).

Benefit	With buy back	Without buy back
Total Pension (Lifetime + Bridge)	$27,696	$23,080
Lifetime Pension	$20,751	$17,292
Bridge (ends at age 65)	$6,945	$5,788
Survivor pension	$13,848	$11,540

If Master Corporal Arnott leaves the CAF this year with his 15 years of service, he would be eligible for either a transfer value or deferred pension benefit.

Benefit	With buy back	Without buy back
Transfer Value	$181,4041 (assumptions)	$154,7791 (assumptions)
Total Deferred pension	$21,022	$16,596

In all cases, Master Corporal Arnott's pension will be indexed starting from age 60 based on the year in which he retires.

$40,525 (assumptions) must be taken in cash, less applicable taxes, or transferred to a registered retirement savings plan (RRSP) (if Master Corporal Arnott has contributions room available)

Scenario 2: Corporal David Jones, leaving the Canadian Armed Forces after 7 years and curious about his accrued pension benefit

Corporal David Jones

• Age: 26
• Average salary: $50,615
• Joined the CAF: April 1, 2002
• 7 years of pensionable service

Corporal Jones joined the CAF when he was 19 immediately after finishing high school. He recently received an offer to work for a private corporation. This means he will need to leave the CAF effective immediately.

His pension benefit is determined by the new rules that came into effect on March 1, 2007. He has 7 years of pensionable service.

Corporal Jones's pension benefits

Corporal Jones is leaving the CAF with 7 years of pensionable service. While he could choose to defer his pension until he is 60, Corporal Jones decides he would prefer to take a transfer value. During his career with the CAF, he contributed $14,885 to the pension plan. He is entitled to a transfer value of $35,725, which must be transferred to his new employer's registered pension plan or to a locked-in retirement plan. Either way, the transfer value provides Corporal Jones with a solid base for his future financial planning.

Scenario 3: Captain Lisa Aldridge, planning to serve for 25 years in the Canadian Armed Forces and to retire at a young age

Captain Lisa Aldridge

• Age: 31
• Current salary: $91,000
• Joined the CAF: April 1, 1999
• 10 years of pensionable Canadian Forces (CF) service

Captain Aldridge joined the CAF in 1999 and has no previous service she can buy back. Her pension benefit will be calculated under the new rules, in place on March 1, 2007.

Captain Aldridge plans to serve her full 25 years with the CAF at which point she will retire with an unreduced pension.

Captain Aldridge's pension benefits

Captain Aldridge can retire with a full (unreduced) pension as of March 31, 2024. In addition to her lifetime pension amount, she will receive a bridge benefit until she reaches age 65 (if she becomes entitled to a CPP or QPP disability pension, the bridge benefit will stop).

Benefit	Annual amount
Total Pension (Lifetime + Bridge)	$45,500
Lifetime Pension	$38,266
Bridge (ends at age 65)	$7,234
Survivor pension	$22,750

Captain Aldridge's pension will be indexed starting from age 60 based on the year in which she retires (2024).

Scenario 4: Master Warrant Officer François Landau, serving on an Indefinite Period of Service and wondering if he should buy back his 12 years of previous service in the Public Service

Master Warrant Officer François Landau

• Age: 55
• Current salary: $74,750
• Average salary: $68,275
• Joined the CAF: April 1, 1991
• Serving on an IPS
• 12 years of full-time service with the Public Service

Master Warrant Officer (MWO) Landau joined the CAF at the end of 1991. He is currently serving on an IPS and has 18 years of pensionable service. His pension will be calculated using the new rules, which were in place on or after March 1, 2007. He will be eligible to retire with an unreduced pension at age 60.

MWO Landau has 12 years of previous service with the Public Service. If he buys back his previous service, he will be eligible to retire immediately with an unreduced pension since he would reach the threshold of age 55 with 30 years of service. The cost of buying back the 12 years would be $72,650.

Master Warrant Officer Landau's pension benefits

If he chooses to buy back 12 years of previous service, MWO Landau can retire immediately with a full (unreduced) pension and with 30 years of pensionable service. If he chooses not to buy back those years, MWO Landau can retire with a full (unreduced) pension after he turns 60 in March 2014.

In both cases, he will receive a bridge benefit until he reaches age 65 in addition to his lifetime pension amount (if he becomes entitled to a CPP or QPP disability pension, the bridge benefit will stop).

Benefit	With buy back he can retire immediately	Without buy back he can retire at age 60
Total Pension (Lifetime + Bridge)	$40,965	$34,385
Lifetime Pension	$32,786	$27,729
Bridge (ends at age 65)	$8,179	$6,656
Survivor pension	$20,483	$17,193

If MWO Landau chooses to buy back his 12 years of service in the Public Service, his pension will be indexed immediately based on the year in which he retires (2009). If he chooses not to buy back the 12 years, his pension will be indexed starting from age 60.

Scenario 5: Captain Laurie-Ann Lee, nearing the end of a long career with the Canadian Armed Forces and can retire under the old plan rules in place prior to March 1, 2007

Captain Laurie-Ann Lee

• Age: 40
• Average salary: $88,500
• Joined the CAF: April 1, 1990
• 19 years of pensionable service
• Serving on an IE 20

Captain Lee joined the CAF at age 21 and is currently serving on an IE 20. Her husband's company has asked him to relocate to Europe at the end of next year. Captain Lee has enjoyed a long career with the CAF and is ready to retire and stay at home with her three children to help them transition to their new home. Although she has not completed 25 years of CF service, she is grandfathered under the old plan rules in place prior to March 1, 2007, and she will be eligible to retire in 2010 when she completes her IE.

Captain Lee's pension benefits

Captain Lee can retire with a full (unreduced) pension at the end of March 2010. In addition to her lifetime pension amount, she will receive a bridge benefit until she reaches age 65 (if she becomes entitled to a CPP or QPP disability pension, the bridge benefit will stop).

Benefit	Annual amount
Total Pension (Lifetime + Bridge)	$35,400
Lifetime Pension	$29,817
Bridge (ends at age 65)	$5,583
Survivor pension	$17,700

Captain Lee's pension will be indexed starting from age 60 based on the year in which she retires.

Scenario 6: Major Pat Smith, thinking about accepting a new term of service but wants to know the impact on his pension

Major Pat Smith

• Age: 38
• Current salary: $104,350
• Joined the CAF: April 1, 1991
• 18 years of both pensionable and CF service
• Bought back 6 months of Reserve Force service
• Serving on an IE 20
• Offered an IPS

Major Smith joined the Regular Force when he was 20 after serving 6 months in the Reserve Force. He is currently serving on an IE 20. He has just been offered the chance at a dream opportunity with the CAF but it means he will need to accept a new term of service - an IPS. He is fairly certain he wants to accept the new term, but before he does, he wants to have a better understanding of what would happen to his pension because he is eligible to retire under the old plan rules in place prior to March 1, 2007.

If he accepts the IPS, he will be entitled to an unreduced pension after 25 years of CF service. If he leaves prior to completing his IPS, he will be entitled to an immediate reduced pension.

Major Smith's pension benefits

If Major Smith completes his IE 20 term, he can retire with a full (unreduced) pension as of March 2011.

If Major Smith accepts the IPS, he can retire with a full (unreduced) pension as of September 2015, after 25 years of CF service (including the 6 months of Reserve Force service that he bought back).

In both cases, he will receive a bridge benefit in addition to his lifetime pension until he reaches age 65 (if he becomes entitled to a CPP or QPP disability pension, the bridge benefit will stop).

Benefit	If he completes his IE 20	After 25 years of CF Service
Total Pension (Lifetime + Bridge)	$42,285	$52,175
Lifetime Pension	$36,455	$44,941
Bridge (ends at age 65)	$5,830	$7,234
Survivor pension	$21,143	$26,088

However, if he accepts the IPS and wants to retire before September 2015, he will receive a reduced pension. Because he is grandfathered, if he chooses to retire before he completes 25 years of service, he is guaranteed the amount of pension payable after his IE 20.

Benefit	Retires March 2012	Retires March 2013	Retires March 2014
Total Pension (Lifetime + Bridge)	$42,285	$42,285	$42,285
Lifetime Pension	$36,101	$35,744	$35,485
Bridge (ends at age 65)	$6,184	$6,511	$6,800
Survivor pension	$22,350	$23,479	$24,523

In all cases, Major Smith's pension will be indexed starting from age 60 based on the year in which he retires.

Scenario 7: Sergeant Steve Parker, close to retirement and thinking about buying back his 3 years of previous service in the Public Service so his pension is indexed at an earlier age

Sergeant Steve Parker

• Age: 48
• Average salary: $60,106
• Joined the CAF: April 1, 1984
• 25 years of pensionable CF service

Sergeant Parker joined the CAF at age 23. Although he is grandfathered under the old plan rules in place prior to March 1, 2007, he is entitled to an immediate pension because he has completed 25 years of CF service.

Sergeant Parker has the option of buying back three years of service from when he worked in the Public Service. If he decided to buy back the 3 years, the cost to him would be $16,575. To help him decide if it is worth the cost of the buyback, Sergeant Parker wants to know how it will affect his pension.

Sergeant Parker's pension benefits

Sergeant Parker can retire with a full (unreduced) pension as of March 31, 2009. In addition to his lifetime pension amount, he will receive a bridge benefit until he reaches age 65 (if he becomes entitled to a CPP or QPP disability pension, the bridge benefit will stop).

Benefit	With buy back	Without buy back
Total Pension (Lifetime + Bridge)	$33,659	$30,053
Lifetime Pension	$26,026	$23,237
Bridge (ends at age 65)	$7,634	$6,816
Survivor pension	$16,830	$15,026

If Sergeant Parker chooses to buy back his 3 years of service in the Public Service, his pension will be indexed starting from age 57 based on the year in which he retires (2009). If he chooses not to buy back the 3 years, his pension will be indexed starting from age 60.

Scenario 8: Petty Officer 1st Class (PO1) Elizabeth Chan, eligible to receive a pension upon release because she had bought back previous service prior to becoming disabled

PO1 Elizabeth Chan

• Age: 31
• Average salary: $66,730
• Joined the CAF: April 1, 2001
• 8 years of CF service
• Bought back 3 years of full-time Public Service

PO1 Chan joined the Regular Force in 2001 and was eligible to buy back 3 years of Public Service.

PO1 Chan recently became disabled and is unable to return to duty. According to the pension plan rules, you must have at least 10 years of pensionable service in order to be entitled to a pension.

Luckily, PO1 Chan had the foresight to buy back her past service when she joined the Regular Force Pension Plan, giving her 11 years of pensionable service. The cost of buying back her 3 years of past service was $4,450. Not only did buying back her service sooner than later save her money in interest, it also means she is entitled to a pension even though she is leaving early due to her disability.

PO1 Chan's pension benefits

Because she chose to buy back her 3 years of past service, PO1 Chan can receive a pension immediately upon her release.

Benefit	Annual amount
Total Pension (Lifetime + Bridge)	$13,165
Lifetime Pension	$10,166
Bridge (ends at age 65Footnote *)	$2,999
Survivor pension	$6,582

Due to her disability, her pension will be indexed immediately.

If she had not bought back her past service prior to becoming disabled, PO1 Chan would have only been entitled to a transfer value of $61,700 or a total deferred pension of $9,574. She would not have been able to buy back her past service after becoming disabled without passing a medical exam.

Regular Force members who enrolled on or after March 1, 2007

Scenario 9: Corporal David Jones, leaving the CAF after 7 years and curious about his accrued pension benefit

Scenario 10: Captain Lisa Aldridge, planning to serve for 25 years in the CAF and to retire at a young age

Scenario 11: Corporal François Landau, serving on an Indefinite Period of Service (IPS) and wondering if he should buy back his 12 years of previous service in the Public Service

Scenario 12: Petty Officer 1st Class Elizabeth Chan, eligible to receive a pension upon release because she had bought back previous service prior to becoming disabled

Scenario 9: Corporal David Jones, leaving the Canadian Armed Forces after 7 years and curious about his accrued pension benefit

Corporal David Jones

• Age: 26
• Average salary: $55,500
• Joined the CAF: April 1, 2007
• 7 years of pensionable service

Corporal David Jones joined the CAF when he was 19 immediately after finishing high school. By 2014, he is a Corporal when he leaves the CAF to work for a private corporation.

His pension benefit is determined by the new rules, which came into effect on March 1, 2007. He has 7 years of pensionable service.

Corporal Jones's pension benefits

Corporal Jones is leaving the CAF with 7 years of pensionable service. While he could choose to defer his pension until he is sixty, Corporal Jones decides he would prefer to take a transfer value. During his career with the CAF, he contributed $19,100 to the pension plan. He is entitled to a transfer value of $33,600, which must be transferred to his new employer's registered pension plan or to a locked-in retirement plan. Either way, the transfer value provides Corporal Jones with a solid base for his future financial planning.

Scenario 10: Captain Lisa Aldridge, planning to serve for 25 years in the Canadian Armed Forces and to retire at a young age

Captain Lisa Aldridge

• Age: 31
• Current salary: $91,000
• Joined the CAF: April 1, 2007
• Plans to retire in 2032 at age 54

Captain Aldridge joined the CAF in 2007 and has no previous service she can buy back. Her pension benefit will be calculated under the new rules of the plan which came into effect on March 1, 2007.

When she retires in 2032, she will be a Captain and will have served a full 25 years with the CAF. At that point, she will be eligible to retire with an unreduced pension.

Captain Aldridge's pension benefits

Captain Aldridge can retire with a full (unreduced) pension as of March 31, 2024. In addition to her lifetime pension amount, she will receive a bridge benefit until she reaches age 65 (if she becomes entitled to a CPP or QPP disability pension, the bridge benefit will stop).

Benefit	Annual amount
Total Pension (Lifetime + Bridge)	$45,500
Lifetime Pension	$38,266
Bridge (ends at age 65)	$7,234
Survivor pension	$22,750

Captain Aldridge's pension will be indexed starting from age 60 based on the year in which she retires (2032).

Scenario 11: Corporal François Landau, serving on an Indefinite Period of Service and wondering if he should buy back his 12 years of previous service in the Public Service

Corporal François Landau

• Age: 39
• Current salary: $58,380
• Average salary at release: $74,750
• Joined the CAF: April 1, 2007
• Plans to retire in 2030
• 12 years of full-time service with the Public Service

Corporal François Landau joined the CAF in 2007. In 16 years, he will be a Master Warrant Officer (MWO). His pension will be calculated using the new rules that came into effect on March 1, 2007. He will be eligible to retire with an unreduced pension at age 60.

Corporal François Landau has 12 years of previous service with the Public Service. If he buys back his previous service, he will be eligible to retire at age 55 with an unreduced pension since he would reach the threshold of age 55 with 30 years of service. The cost of buying back the 12 years would be $41,250.

Corporal Landau's pension benefits

If he chooses to buy back 12 years of previous service, Corporal Landau can retire at age 55 with a full (unreduced) pension and with 30 years of pensionable service. If he chooses not to buy back those years, MWO Landau can retire with a full (unreduced) pension after he turns 60 in March 2030.

In both cases, he will receive a bridge benefit until he reaches age 65 in addition to his lifetime pension amount (if he becomes entitled to a CPP or QPP disability pension, the bridge benefit will stop).

Benefit	With buy back he can retire at age 55	Without buy back he can retire at age 60
Total Pension (Lifetime + Bridge)	$44,850	$34,385
Lifetime Pension	$36,169	$27,729
Bridge (ends at age 65)	$8,681	$6,656
Survivor pension	$22,425	$17,193

If Corporal Landau chooses to buy back his 12 years of service in the Public Service and retires at age 55, his pension will be indexed immediately based on the year in which he retires. If he chooses not to buy back the 12 years, his pension will be indexed starting from age 60.

Scenario 12: Petty Officer 1st Class (PO1) Elizabeth Chan, eligible to receive a pension upon release because she had bought back previous service prior to becoming disabled

PO1 Elizabeth Chan

• Age: 31
• Average salary: $58,600
• Joined the CAF: April 1, 2007
• 2 years of CF service
• Bought back 9 years of Regular Force service

PO1 Chan rejoined the Regular Force in 2007 and was eligible to buy back nine years of prior Regular Force service.

PO1 Chan recently became disabled and will be unable to return to duty. According to the pension plan rules, you must have at least 10 years of pensionable service in order to be entitled to an immediate pension.

Luckily, PO1 Chan had the foresight to buy back her Regular Force past service when she rejoined the Regular Force Pension Plan, giving her 11 years of pensionable service. The cost of buying back her nine years of past service was $21,550. Not only did buying back her service sooner than later save her money in interest, it also means she is entitled to a pension even though she is leaving early due to her disability.

PO1 Chan's pension benefits

Because she chose to buy back her 9 years of past service, PO1 Chan can receive a pension immediately upon her release.

Benefit	Annual amount
Total Pension (Lifetime + Bridge)	$12,892
Lifetime Pension	$9,893
Bridge (ends at age 65Footnote *)	$2,999
Survivor pension	$6,446

Due to her disability, her pension will be indexed immediately.

If she had not bought back her past service prior to becoming disabled, PO1 Chan would have only been entitled to a transfer value of $15,040 or a total deferred pension of $2,344. She would not have been able to buy back her past service after becoming disabled without passing a medical exam.

Reservists in the Reserve Force Pension Plan

Scenario 13: Master Corporal Solange Dubois, in the Reserve Force and thinking about topping up her contributions once she is eligible to join the Regular Force Pension Plan

Scenario 14: Sergeant Michele Blackburn, wondering if she should buy back 13 years of previous Reserve Force service

Scenario 15: Corporal Sydney Goyette, joined the Reserve Force at 35 and is planning to serve until she is at least 60

Scenario 16: Sergeant Alexi Krpan, leaving the Reserve Force in the near future and wondering if he should buy back eight years of previous Reserve Force service

Scenario 13: Master Corporal Solange Dubois, in the Reserve Force and thinking about topping up her contributions once she is eligible to join the Regular Force Pension Plan

Master Corporal Solange Dubois

• Age: 25
• Current salary: $46,175
• Pensionable service: 4 years
• Joined the CAF: April 1, 2005
• Plans to retire after serving 25 years of CF service
• Bought back her two years past service when she joined the Reserve Force Pension Plan

Master Corporal Dubois joined the Reserve Force in 2005 and the Reserve Force Pension Plan in 2007. She currently works full time in the Reserve. If she continues to work full time, she will join the Regular Force Pension Plan in 2014 (when she will have served 55 of 60 months). Her pension credits will transfer from the Reserve Force Pension Plan to the Regular Force Pension Plan and she will have the option of topping up her contributions. If she decided to top up her contributions at that time, the cost to her would be $1,735.

She plans to serve her full 25 years with the CAF at which point she will retire with an unreduced pension. At that time, she will have 28 years of pensionable service.

Master Corporal Dubois' pension benefits

Master Corporal Dubois can retire with a full (unreduced) pension as of March 31, 2033 when she is 57. In addition to her lifetime pension amount, she will receive a bridge benefit until she reaches age 65 (if she becomes entitled to a CPP or QPP disability pension, the bridge benefit will stop).

Benefit	With top-up	Without top-up
Total Pension (Lifetime + Bridge)	$23,088	$22,164
Lifetime Pension	$15,854	$15,219
Bridge (ends at age 65)	$7,234	$6,945
Survivor pension	$11,544	$11,082

Whether or not she decides to top up her contributions, Master Corporal Dubois' pension will be indexed immediately based on the year in which she retires (2033) because her age - 57 - and her years of service - 28 years - equals 85.

Scenario 14: Sergeant Michele Blackburn, wondering if she should buy back 13 years of previous Reserve Force service

Sergeant Michele Blackburn

• Age: 40
• Joined the Reserve in 1994 when she was 25
• Average number of days worked per year: 100
• Current daily rate: $140
• Can buy back 13 years of past service

Sergeant Blackburn lives in Manitoba and works as a nurse at the local hospital. Sergeant Blackburn joined the Reserve in 1994 when she was 25 years old. She joined the Reserve Force Pension Plan in 2007.

Sergeant Blackburn can buy back 13 years of past service. If she decides to buy back the 13 years, the cost to her would be $11,500. She knows that buying back past service will increase the value of her pension when she leaves the Reserve, but she wants to have a better idea of the impact on her pension before investing the time and resources required to buy back the past service. She also knows she must initiate the buy back before the March 1, 2011 deadline.

Sergeant Blackburn's pension benefits

If she chooses to buy back her 13 years of past service, Sergeant Blackburn can retire with a full (unreduced) pension as of March 31, 2024 at age 55. If she chooses not to buy back those years, Sergeant Blackburn can retire with a full (unreduced) pension after she turns 60 in February 2029.

Benefit	With top-up	Without top-up
Total Pension (Lifetime + Bridge)	$6,300	$4,620
Bridge (ends at age 65)	$2,100	$1,540
Survivor pension	$4,200	$3,080

If Sergeant Blackburn chooses to buy back her 13 years of service, her pension will be indexed starting from age 55 with 30 years of pensionable service. If she chooses not to buy back the 13 years, her pension will be indexed starting from age 60.

Scenario 15: Corporal (Cpl) Sydney Goyette, joined the Reserve Force at 35 and is planning to serve until she is at least 60

Corporal Sydney Goyette

• Date of birth: February 25, 1974
• Joined the Reserve in April 2009
• Average number of days worked per year: 40
• Current daily rate: $125
• Serving Class A
• Plans to stay in the Reserve until age 60, never serving more than Class A

Corporal Goyette is an elementary school teacher who lives in a mid-size community in Northern Ontario. Corporal Goyette joined the Reserve in 2009 at age 35 and plans to stay in it until she is at least 60 years old. She will be eligible to join the Reserve Force Pension Plan in 2011. She loves going on training exercises every summer and is ready to help her country in a national emergency.

Corporal Goyette's pension benefits

Corporal Goyette can retire with a full (unreduced) pension in February 2034 after she turns 60. In addition to her lifetime pension amount, she will receive a bridge benefit until she reaches age 65 (if she becomes entitled to a CPP or QPP disability pension, the bridge benefit will stop).

Benefit	Annual Amount
Total Pension (Lifetime + Bridge)	$2,300
Lifetime pension	$1,725
Bridge (ends at age 65)	$575
Survivor pension	$1,150

If Corporal Goyette decides instead to leave the CAF at age 49 with 12 years of pensionable service, the transfer value of her pension benefit would be $9,400, which she would have to transfer to another employer's pension plan or into a locked-in retirement plan. Since Corporal Goyette is a member of the teachers' pension plan, receiving a transfer value instead of a deferred pension could be a sensible choice.

Scenario 16: Sergeant Alexi Krpan, leaving the Reserve Force in the near future and wondering if he should buy back 8 years of previous Reserve Force service

Sergeant Alexi Krpan

• Age: 28
• Joined the Reserve at age 18 in 1999
• Joined the Reserve Force Pension Plan in March 2007
• Can buy back 8 years of service

Sergeant Krpan joined the Reserve when he was 18 years old and just beginning university. He is now in his last year of medical residency and will graduate in a few months. His goal is to set up his own family medicine practice as soon as possible. Sergeant Krpan figures the first years will be too hectic for him to maintain his position in the Reserve, so he intends to leave the force after he opens his practice.

Sergeant Krpan has spent the last four summers working abroad as a medical aide in different countries with the CAF. As graduation approaches, he realizes that if he is going to buy back any past service, he needs to act immediately. He is eligible to buy back 8 years of service and feels it will be worth the money spent as the transfer value he will receive from the CAF will provide the foundation for his retirement savings. The cost of buying back the 8 years would be $6,400.

Sergeant Krpan's pension benefits

• Transfer value with no buy back is $4,100
• Transfer value with buying back past service is $15,430

As a physician, Alexi does not belong to a formal pension plan and must rely on his own financial planning when it comes to saving for retirement. Buying back past service allows Alexi to tax shelter money for his retirement.

Reservists in the Regular Force Pension Plan

Scenario 17: Sergeant Johnny Siddock, wondering if he should buy back 10 years of previous Reserve Force service

Scenario 18: Master Corporal Solange Dubois, in the Reserve Force and thinking about topping up her contributions once she is eligible to join the Regular Force Pension Plan

Scenario 17: Sergeant Johnny Siddock, wondering if he should buy back 10 years of previous Reserve Force service

Sergeant Johnny Siddock

• Age: 37
• Joined the Reserve in March 1997
• Current salary: $53,350
• Joined the Reserve Force Pension Plan in March 2007
• 10 years of previous service Reserve Force

Sergeant Siddock joined the Reserve Force in 1997 in Ottawa and has been working full time at Headquarters since then.

Sergeant Siddock is eligible to buy back 10 years of previous Reserve Force service, which he must do prior to the March 1, 2011 deadline. If he decided to buy back the 10 years, the cost to him would be $33,700. However, before he commits the time and resources necessary for buying back his past service, he wants to understand the impact it will have on his pension.

Sergeant Siddock's pension benefits

Sergeant Siddock can retire with a full (unreduced) pension as of March 31, 2022 at age 50 with 25 years of CF service. In addition to his lifetime pension amount, he will receive a bridge benefit until he reaches age 65 (if he becomes entitled to a CPP or QPP disability pension, the bridge benefit will stop).

Benefit	With buy back	Without buy back
Total Pension (Lifetime + Bridge)	$26,675	$16,005
Lifetime Pension	$19,441	$11,664
Bridge (ends at age 65)	$7,234	$4,341
Survivor benefits	$13,338	$8,003

Whether or not he decides to buy back his service, Sergeant Siddock's pension will be indexed starting at age 60 based on the year in which he retires (2022).

Scenario 18: Master Corporal Solange Dubois, in the Reserve Force and thinking about topping up her contributions once she is eligible to join the Regular Force Pension Plan

Master Corporal Solange Dubois

• Age: 25
• Current salary:$46,175
• Pensionable service: 4 years
• Joined the CAF: April 1, 2005
• Plans to retire after serving 25 years of CF service
• Bought back her 2 years past service when she joined the Reserve Force Pension Plan

Master Corporal Dubois joined the Reserve Force in 2005 and the Reserve Force Pension Plan in 2007. She currently works full time in the Reserve. If she continues to work full time, she will join the Regular Force Pension Plan in 2014 (when she will have served 55 of 60 months). Her pension credits will transfer from the Reserve Force Pension Plan to the Regular Force Pension Plan and she will have the option of topping up her contributions. If she decided to top up her contributions at that time, the cost to her would be $1,735.

She plans to serve her full 25 years with the CAF at which point she will retire with an unreduced pension. At that time, she will have 28 years of pensionable service.

Master Corporal Dubois' pension benefits

Master Corporal Dubois can retire with a full (unreduced) pension as of March 31, 2033 when she is 57. In addition to her lifetime pension amount, she will receive a bridge benefit until she reaches age 65 (if she becomes entitled to a CPP or QPP disability pension, the bridge benefit will stop).

Benefit	With top-up	Without top-up
Total Pension (Lifetime + Bridge)	$23,088	$22,164
Lifetime Pension	$15,854	$15,219
Bridge (ends at age 65)	$7,234	$6,945
Survivor benefits	$11,544	$11,082

Whether or not she decides to top up her contributions, Master Corporal Dubois' pension will be indexed immediately based on the year in which she retires (2033) because her age - 57 - and her years of service - 28 years - equals 85.