Pensions and other future benefits

Public Accounts of Canada 2024 Volume I—Top of the page Navigation

The obligations arising from public sector pensions and other employee and veteran future benefits, sponsored by the government or some of the consolidated Crown corporations and other entities, are measured on an actuarial basis and are presented net of pension assets, unrecognized net actuarial gain or loss and valuation allowance, as well as contributions and benefits paid by some of the consolidated Crown corporations and other entities after their measurement date of December 31 up to March 31.

Public sector pensions

The government sponsors a number of defined benefit pension plans covering substantially all its employees, principally members of the federal public service, the Canadian Forces (including the Reserve Force) and the Royal Canadian Mounted Police, as well as employees of certain Public Service corporations and territorial governments. The government also sponsors several other pension plans; the two most significant ones being for Members of Parliament and federally appointed judges. The government has a statutory obligation to pay the pension benefits it sponsors.

The liabilities for public sector pension plans sponsored by the government are initially recorded through pension accounts, which are generally established pursuant to legislation. The pension accounts track transactions such as contributions, interest credits, benefit payments, transfers and administrative expenses. Any adjustments required under the government’s accounting policies are then recorded through allowance for pension adjustment accounts. The allowance accounts reflect the differential between accrual and cash accounting recognized through the years. They also reflect the accumulated difference in interest calculations and consolidation adjustments related to refundable tax amounts remitted to or refunded from the Canada Revenue Agency.

The government’s pension plans are generally financed from employer and employee contributions or from government and member contributions. The contributions are either part of general funds or transferred to the Public Sector Pension Investment Board (PSPIB) for investment. Since April 1, 2000, amounts equal to contributions less benefit payments and other charges related to the public service, Canadian Forces—Regular Force and Royal Canadian Mounted Police pension plans, and since 2007 for the Canadian Forces—Reserve Force pension plan, that fall within the Income Tax Act limits are transferred to the PSPIB. The goal of the PSPIB is to maximize returns on investments without undue risk of loss, while having regard to the funding, policies and requirements and financial obligations of each of the pension plans. The PSPIB, a Canadian Crown corporation established under the Public Sector Pension Investment Board Act, reports the results of the investments it holds in its annual report tabled in Parliament. Contributions for all the other pension plans sponsored by the government are part of general funds.

More information on the above-mentioned pension plans can be found in the respective annual report on the administration of the plans tabled in Parliament.

In addition, some of the consolidated Crown corporations and other entities maintain their own defined benefit pension plans covering substantially all of their employees. The majority of the defined benefit pension plans are contributory plans. Employer and employee contributions are made in accordance with the provisions of the plans. Pension plans’ funds are held in external trusts that are legally separate from Crown corporations and other entities.

i. Pension plans

Public Service Pension Plan, Canadian Forces Pension Plan including the Reserve Force Pension Plan and Royal Canadian Mounted Police Pension Plan

The pension plans for the public service, Canadian Forces—Regular Force and the Royal Canadian Mounted Police provide for the payment of a lifetime pension and a temporary bridge benefit payable normally until age 65, the age at which members generally become eligible for the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP). The annual lifetime pension is based on the average salary of five consecutive years of highest-paid service and the years of pensionable service. For the Canadian Forces—Reserve Force pension plan, the annual lifetime pension is based on a percentage of indexed pensionable earnings with a temporary bridge benefit payable normally until age 65, the age at which members generally become eligible for the CPP or QPP. Pension benefits are indexed annually on January 1 to take into account the cost of living.

Pension benefits accrue at a rate of 2% per year of pensionable service up to a maximum of 35 years, the exception being those offered under the Canadian Forces—Reserve Force pension plan. These benefits accrue at a rate of 1.5% up to a maximum of 35 years. Pension benefits are coordinated with those of the CPP or the QPP. Pension benefits for the public service pension plan members will accrue under either Group 1 for employees who were plan members prior to January 1, 2013, or Group 2 for employees joining the public service pension plan on or after that date. The normal retirement age for Group 1 members is 60. For Group 2 members, the normal retirement age is 65 and other age-related thresholds were increased by 5 years.

Public service Group 1, Canadian Forces—Regular Force and Royal Canadian Mounted Police members contribute at different rates than public service Group 2 members. The member contribution rates are as follows:

Public service Group 1, Canadian Forces—Regular Force and Royal Canadian Mounted Police pension plan members contributed:

Public service Group 2 pension plan members contributed:

Contribution rates for Group 2 members were lower than for Group 1 members due to the lower cost of the benefits associated with a higher normal age of retirement for Group 2 members of 65 compared to 60 for Group 1 members.

Members of the Canadian Forces—Reserve Force contribute 5.2% on pensionable earnings up to 66 2/3 times the defined benefit limit as determined under the Income Tax Regulations.

Employer contributions are made monthly to provide for the cost (net of employee contributions) of the benefits that have accrued in respect of that month at a rate determined by the President of the Treasury Board. For 2024, the employer contribution rates were about 1.0, 1.6, 2.3 and 1.2 (1.0, 1.6, 2.5 and 1.2 respectively in 2023) times the current year’s employee contribution for the plans under the Public Service Superannuation Act, the Canadian Forces Superannuation Act (Regular Force and Reserve Force pension plans) and the Royal Canadian Mounted Police Superannuation Act, respectively.

The superannuation accounts, which record the transactions that pertain to pre-April 1, 2000 service, are credited with interest at rates that are based on the Government of Canada long-term bond rate. The average interest rate credited to the superannuation accounts was 3.1% (3.2% in 2023).

The pension fund accounts, which record the transactions that pertain to service since April 1, 2000, are flow-through accounts used to transfer funds to the PSPIB. The balance in the pension fund accounts at year-end represents the amounts awaiting transfer to the PSPIB.

The retirement compensation arrangements (RCA) accounts record transactions for those pension benefits above the pension limits set under the Income Tax Act. The RCA accounts No. 1 and No. 2 are registered with the Canada Revenue Agency (CRA) and a transfer is made annually between these RCA accounts and the CRA, either to remit a 50% refundable tax in respect of the net contributions and interest credits or to receive a refund based on the net benefit payments.

Members of Parliament retiring allowances

Members of Parliament are eligible at a certain age to receive a basic allowance upon termination of membership and after having contributed to the plan for at least six years. Retirement age is set at 55 for pensionable service accrued before January 1, 2016 and at 65 for pensionable service accrued on or after January 1, 2016, with the option of reduced benefits for early retirement at age 55. The basic allowance accrues at a rate of 3% per year of pensionable service for both Members of the House of Commons and for Senators. For service accrued before January 1, 2016, the accrual rate is multiplied by the average of the best five consecutive years of sessional indemnity up to a maximum of 75% of the plan member’s average sessional indemnity. For service accrued after December 31, 2015, the accrual rate is multiplied by the average of the best five consecutive years of pensionable earnings up to a maximum of 75% of the plan member’s average pensionable earnings. Basic allowances are indexed annually on January 1 to the cost of living once recipients reach age 60. Pensionable service accrued on or after January 1, 2016, under the Members of Parliament pension plan, is coordinated with the CPP or QPP at age 60.

The contribution rates have increased over time to bring the plan members’ share to 50% as at January 1, 2018. For the 2024 fiscal year, plan members contributed at a rate of 23.3% (23.3% in 2023) of their salary for the first nine months and a rate of approximately 22.2% (23.3% in 2023) for the last three months.

The government contributions are made monthly to provide for the cost (net of plan member contributions) of the benefits that have accrued in respect of that month at a rate determined by the President of the Treasury Board. The government contributions, expressed as a multiple of plan member contributions, are on average as follows:

 

Table 1 
  2024 2023
Members of Parliament
Retiring Allowances Account 1.0 1.0
Compensation Arrangements Account 1.0 1.0

Contributions are credited to the appropriate pension account, either the Members of Parliament Retiring Allowances Account or the Members of Parliament Retirement Compensation Arrangements Account. The pension accounts are also credited with interest at a rate determined by the Chief Actuary of Canada. The average interest rate credited to the pension accounts in 2024 was 3.1% (3.1% in 2023; revised from 1.7% by the Chief Actuary).

Pension plan for federally appointed judges

This plan provides fully indexed annuities to judges and to all eligible survivors providing they meet minimum age and service requirements. The full benefit amount is generally payable when the member has completed 15 years of pensionable service and the sum of the member’s age and years of service equals 80.

Judges appointed to the bench before February 17, 1975, make required contributions of 1.5% of salary. All other judges contribute 7% of salary.

Legislation does not require a specific pension account to be maintained to record the transactions pertaining to this plan. Therefore, except for the portion recorded in the Supplementary Retirement Benefit Account, the liability pertaining to this plan is recorded through an allowance account. During the year, benefits paid are recorded as expenditures against the statutory payment authority. The expense is adjusted at year-end through an allowance account, to bring the current year expense from cash to an accrual accounting basis, similar to that of the other pension plans. During the year, the benefit payments charged to the expenditure authority amounted to $237 million
($211 million in 2023). At March 31, 2024, the portion of the pension liability recorded through an allowance account for the judges’ pension plan amounted to $5,207 million ($4,872 million in 2023).

Consolidated Crown corporations and other entities pension plans

Pension benefits provided under consolidated Crown corporations and other entities defined benefit pension plans accrue depending on the terms of the plans. Generally, they are based on a combination of an accrual rate per years of pensionable service and some type of pensionable earnings average. Some of the consolidated Crown corporations and other entities’ defined benefit pension plans are closed to new participants.

ii. Actuarial valuations

As required under the Public Pensions Reporting Act, actuarial valuations of the pension plans sponsored by the government are performed at least every three years for funding purposes. The actuarial valuations are performed by the Office of the Chief Actuary, submitted to the President of the Treasury Board, and tabled in Parliament.

The most recent date of the actuarial valuation for funding purposes of each pension plan sponsored by the government is as follows:

  1. Public Service—March 31, 2023;
  2. Canadian Forces—Regular Force and Reserve Force—March 31, 2022;
  3. Members of Parliament—March 31, 2022;
  4. Federally appointed judges—March 31, 2022;
  5. Royal Canadian Mounted Police—March 31, 2021.

The actuarial valuations for the public service, Canadian Forces, Royal Canadian Mounted Police and Members of Parliament pension plans include the valuation of the Retirement Compensation Arrangements (RCA) component related to each plan.

Where applicable, the funding valuations provide the government with recommendations for setting both employer and employee contribution rates, as well as any actuarial adjustment to amortize deficiencies or excesses. These actuarial adjustments are made in equal instalments over a period not exceeding 15 years commencing in the year in which the actuarial report is laid before Parliament. The actuarial adjustments made during the year are as follows:

The actuarial adjustments recorded in pension fund accounts are transferred to the PSPIB for investment. To address actuarial deficiencies, the consolidated Crown corporations and other entities made special funding payments of $1 million ($3 million in 2023).

Table 6.13 presents a summary of the balances and transactions for public sector pension plan liabilities. In particular, receipts and other credits for the government’s pension accounts consist of contributions from plan members, the Government of Canada, participating Public Service corporations and territorial governments, as well as transfers from other pension funds, actuarial adjustments to amortize deficiencies, refunds of refundable tax and interest. Payments and other charges for the government’s pension accounts consist of annuity payments, minimum benefits, cash termination allowances (lump sum payments to employees suffering a disability), returns of contributions, pension division payments, transfer value payments, transfers to other funds, remittances of refundable tax, payments of administrative expenses, actuarial adjustments to amortize excesses, and transfers to PSPIB. Adjustments to the government’s allowance accounts result from the differential with annual actuarial valuations performed for accounting purposes. These include differences between benefits earned and contributions and interest calculations, as well as from other adjustments required under the government’s accounting policies such as recognition of actuarial gains and losses and consolidation adjustments related to refundable tax amounts.

Pension benefits funded by the government relate to post-March 2000 service that falls within the Income Tax Act limits for the three main public sector pension plans and all service for the Canadian Force—Reserve Force pension plan, as funds are invested through the PSPIB. Funded pension benefits also relate to consolidated Crown corporations and other entities where pension plans’ funds are held in external trusts that are legally separate from Crown corporations and other entities. For unfunded pension plans, separate invested funds are not maintained. These relate to all pre-April 2000 service and only to post-March 2000 service that falls above the Income Tax Act limits for the three main public sector pension plans, all service periods for the pension plans of the federally appointed judges and Members of Parliament, and some of the consolidated Crown corporations and other entities pension plans.

Table 6.13
Public sector pensionsLinks to footnote * in table 2
(in millions of dollars)
  April 1, 2023 Receipts and other credits Payments and other charges March 31, 2024
Funded pension benefits
Public Service Pension Fund Account, Table 6.16 12 7,355 7,338 29
Allowance for pension adjustments (negative 9,975) 5,244 10,505 (negative 15,236)
Subtotal (negative 9,963) 12,599 17,843 (negative 15,207)
Canadian Forces Pension Fund Account, Table 6.18 25 1,730 1,715 40
Allowance for pension adjustments (negative 542) 1,077 2,167 (negative 1,632)
Subtotal (negative 517) 2,807 3,882 (negative 1,592)
Reserve Force Pension Fund Account, Table 6.19 (negative 110) 96 41 (negative 55)
Allowance for pension adjustments 39 (negative 44) (negative 44) 39
Subtotal (negative 71) 52 (negative 3) (negative 16)
Royal Canadian Mounted Police Pension Fund Account, Table 6.21 5 614 616 3
Allowance for pension adjustments (negative 153) 253 503 (negative 403)
Subtotal (negative 148) 867 1,119 (negative 400)
Total pension fund accounts (negative 68) 9,795 9,710 17
Total allowance for pension adjustments (negative 10,631) 6,530 13,131 (negative 17,232)
Net pension benefit liabilities related to government-sponsored funded plans (negative 10,699) 16,325 22,841 (negative 17,215)
Pension benefit assets related to funded plans sponsored by consolidated Crown corporations and other entities (negative 2,297) 76 619 (negative 2,840)
Net pension benefit liabilities related to funded plans (negative 12,996) 16,401 23,460 (negative 20,055)
Unfunded pension benefits
Public Service Superannuation Account, Table 6.15 91,343 2,751 5,882 88,212
Allowance for pension adjustments 1,490 2,159 4 3,645
Subtotal 92,833 4,910 5,886 91,857
Canadian Forces Superannuation Account, Table 6.17 44,158 4,632 2,620 46,170
Allowance for pension adjustments 4,374 819 3,302 1,891
Subtotal 48,532 5,451 5,922 48,061
Royal Canadian Mounted Police Superannuation Account, Table 6.20 13,921 420 789 13,552
Allowance for pension adjustments (negative 318) 293 – (negative 25)
Subtotal 13,603 713 789 13,527
Members of Parliament Retiring Allowances Account, Table 6.22 630 47 33 644
Allowance for pension adjustments 179 12 17 174
Subtotal 809 59 50 818
Members of Parliament Retirement Compensation Arrangements Account, Table 6.23 240 51 23 268
Allowance for pension adjustments 402 16 37 381
Subtotal 642 67 60 649
Retirement Compensation Arrangements Accounts, Table 6.24 2,483 293 262 2,514
Allowance for pension adjustments 2,236 169 121 2,284
Subtotal 4,719 462 383 4,798
Supplementary Retirement Benefits Account (Judges), Table 6.25 296 19 – 315
Allowance for pension adjustments 4,872 335 – 5,207
Subtotal 5,168 354 – 5,522
Supplementary Retirement Benefits Account (Others), Table 6.25 1 – – 1
Total superannuation accounts 153,072 8,213 9,609 151,676
Total allowance for pension adjustments 13,235 3,803 3,481 13,557
Pension benefit liabilities related to government-sponsored unfunded plans 166,307 12,016 13,090 165,233
Pension benefit liabilities related to unfunded plans sponsored by consolidated Crown corporations and other entities 118 10 7 121
Pension benefit liabilities related to unfunded plans 166,425 12,026 13,097 165,354
Net pension benefit liabilities 153,429 28,427 36,557 145,299
The net pension benefit liabilities were recognized and presented in the Consolidated Statement of Financial Position as follows:
Public sector pension liabilitiesLinks to footnote 1 in table 2 166,425 28,351 29,422 165,354
Public sector pension assetsLinks to footnote 2 in table 2 (negative 12,996) 76 7,135 (negative 20,055)
Net pension benefit liabilities 153,429 28,427 36,557 145,299

Table 6.14 presents a summary of transactions in public sector pensions that resulted in charges to expenses. Interest is calculated based on the accrued pension obligations under the various plans. The net interest expense represents interest of $4,606 million ($4,823 million in 2023) credited to the superannuation accounts in accordance with the pension legislation, a provision of $12,253 million ($9,341 million in 2023) and interest of $488 million ($460 million in 2023) on the consolidated Crown corporations and other entities’ obligations, shown net of $15,048 million ($12,281 million in 2023) in expected return on pension investments.

Table 6.14
Summary of transactions in public sector pensions that resulted in charges to expensesLinks to footnote * in table 3
(in millions of dollars)
  2024 2023
Government contributions and otherLinks to footnote 1 in table 3 Adjustment Net benefits earned Actuarial adjustmentsLinks to footnote 2 in table 3 Costs recorded in previous yearsLinks to footnote 3 in table 3 Valuation allowance Pension expense included in personnel expenses Actuarial losses (gains) recognized Total pension expense Net interest expense Total pension expense Net interest expense
Funded pension benefits
Public Service Pension Fund Account 3,351 (negative 905) 2,446 – – – 2,446 (negative 2,366) 80 (negative 1,990) 610 (negative 1,370)
Canadian Forces Pension Fund Account 1,060 (negative 271) 789 – – – 789 (negative 514) 275 (negative 307) 634 (negative 163)
Reserve Force Pension Fund Account 63 (negative 5) 58 4 (negative 4) – 58 9 67 2 64 1

Royal Canadian

Mounted Police

Pension Fund

Account

 327 1 328 – – – 328 (negative 132) 196 (negative 119) 287 (negative 50)
Consolidated Crown corporations and other entities 1 75 76 1 (negative 1) (negative 332) (negative 256) (negative 60) (negative 316) (negative 225) 658 (negative 243)
Total funded pension benefits 4,802 (negative 1,105) 3,697 5 (negative 5) (negative 332) 3,365 (negative 3,063) 302 (negative 2,639) 2,253 (negative 1,825)
Unfunded pension benefits
Public Service Superannuation AccountLinks to footnote 4 in table 3 2 (negative 4) (negative 2) – – – (negative 2) 2,113 2,111 2,793 1,844 2,356
Canadian Forces Superannuation AccountLinks to footnote 4 in table 3 2 (negative 4) (negative 2) 3,298 (negative 3,298) – (negative 2) 766 764 1,384 1,175 1,172
Defence Services Pension Continuation Act 1 – 1 – – – 1   1   1 –
Royal Canadian Mounted Police Superannuation Account – – – – – – – 292 292 421 340 358
Royal Canadian Mounted Police Continuation Act 2 – 2 – – – 2   2   4 –
Members of Parliament Retiring Allowances Account 11 6 17 8 (negative 8) – 17 (negative 9) 8 22 31 18
Members of Parliament Retirement Compensation Arrangement Account 9 4 13 27 (negative 27) – 13 (negative 10) 3 17 20 14
Retirement Compensation Arrangement Accounts 140 (negative 85) 55 – – – 55 40 95 132 105 108
Supplementary Retirement Benefits Account 4 – 4 – – – 4   4 – 5 –
Judges Act 237 22 259 – – – 259 154 413 169 501 137
Other (diplomatic services, lieutenant governors, etc.) 3 – 3 – – – 3   3   3 –
Consolidated Crown corporations and other entities – 2 2 – – – 2 2 4 5 6 5
Subtotal 411 (negative 59) 352 3,333 (negative 3,333) – 352 3,348 3,700 4,943 4,035 4,168
Contributions from the Judges' plan recorded to revenues (negative 20) – (negative 20) – – – (negative 20) – (negative 20) – (negative 19) –
Total unfunded pension benefits 391 (negative 59) 332 3,333 (negative 3,333) – 332 3,348 3,680 4,943 4,016 4,168
Total reported in the Consolidated Statement of Operations and Accumulated Operating Deficit 5,193 (negative 1,164) 4,029 3,338 (negative 3,338) (negative 332) 3,697 285 3,982 2,304 6,269 2,343

Public Service Superannuation Account

This account, established by the Public Service Superannuation Act, is used to record all transactions (contributions, benefit payments, transfers and interest credits) in respect of service accrued by public service members up to March 31, 2000.

Table 6.15
Public Service Superannuation AccountLinks to footnote * in table 4
(in dollars)
  2024 2023
Opening balance 91,343,666,054 94,112,622,979
Receipts and other credits
Employee contributions
Government employees 305,608 299,353
Retired employees 1,797,783 1,939,369
Public Service corporation employees 25,445 35,621
Employer contributions
Government 1,802,686 1,872,161
Public Service corporations 19,207 35,071
Transfers from other pension funds – (negative 138,196)
Interest 2,746,693,842 2,914,448,351
Total receipts and other credits 2,750,644,571 2,918,491,730
Subtotal 94,094,310,625 97,031,114,709
Payments and other charges
Benefit payments
Annuities 5,797,972,550 5,595,899,247
Minimum benefits 19,247,313 28,879,352
Pension division payments 5,766,454 7,294,462
Pension transfer value payments 1,410,107 2,949,589
Return of contributions
Government employees 25,926 503,739
Public Service corporation employees 642 –
Transfers to other pension funds 768,640 836,161
Administrative expenses 57,517,271 51,086,105
Total payments and other charges 5,882,708,903 5,687,448,655
Closing balance 88,211,601,722 91,343,666,054

Public Service Pension Fund Account

This account is used to record the transactions in respect of service accrued on or after April 1, 2000, under the Public Service Superannuation Act. An amount equal to contributions less benefit payments and other charges is transferred to the PSPIB for investment. The closing balance in this account represents the net cash position prior to the transfer to the PSPIB.

Table 6.16
Public Service Pension Fund Account
(in dollars)
  2024 2023
Opening balance 11,659,233 23,128,960
Receipts and other credits
Employee contributions
Government employees 3,353,919,838 2,891,111,879
Retired employees 52,129,068 54,626,066
Public Service corporation employees 238,206,294 221,930,600
Employer contributions
Government 3,351,070,821 2,889,533,037
Public Service corporations 212,498,631 200,246,626
Transfers from other pension funds 147,679,357 106,085,491
Total receipts and other credits 7,355,504,009 6,363,533,699
Payments and other charges
Benefit payments
Annuities 3,963,923,546 3,484,339,990
Minimum benefits 36,066,001 41,775,933
Pension division payments 35,438,659 41,026,726
Pension transfer value payments 147,353,228 236,407,055
Return of contributions
Government employees 35,186,851 30,992,567
Public Service corporation employees 5,507,695 6,896,627
Transfers to other pension funds 28,709,806 25,451,301
Administrative expenses 98,525,244 79,937,505
Total payments and other charges 4,350,711,030 3,946,827,704
Receipts and other credits less payments and other charges 3,004,792,979 2,416,705,995
Transfers to PSPIB 2,987,686,788 2,428,175,722
Closing balance 28,765,424 11,659,233

Canadian Forces Superannuation Account

This account, established by the Canadian Forces Superannuation Act, is used to record all transactions (contributions, benefit payments, transfers and interest credits) in respect of service accrued by Canadian Armed Forces members up to March 31, 2000.

Table 6.17
Canadian Forces Superannuation AccountLinks to footnote * in table 6
(in dollars)
  2024 2023
Opening balance 44,157,822,558 45,302,621,656
Receipts and other credits
Contributions from personnel 1,778,734 1,943,694
Contributions by the government 1,778,734 1,943,693
Actuarial adjustment 3,298,000,000 –
Transfers from other pension funds – (negative 27,041)
Interest 1,330,681,026 1,404,822,449
OtherLinks to footnote 1 in table 6 260,865 416,243
Total receipts and other credits 4,632,499,359 1,409,099,038
Subtotal 48,790,321,917 46,711,720,694
Payments and other charges
Benefit payments
Pensions and retiring allowances 2,603,553,563 2,524,569,574
Minimum benefits 387,470 381,733
Pension division payments 10,297,279 12,291,166
Pension transfer value payments 5,135 387,588
Return of contributions – 5,988
Administrative expenses 6,426,209 16,262,087
Total payments and other charges 2,620,669,656 2,553,898,136
Closing balance 46,169,652,261 44,157,822,558

Canadian Forces Pension Fund Account

This account is used to record the transactions in respect of service accrued on or after April 1, 2000, in accordance with Part I of the Canadian Forces Superannuation Act. An amount equal to contributions less benefits payments and other charges is transferred to the PSPIB for investment. The closing balance in this account represents the net cash position prior to the transfer to the PSPIB.

Table 6.18
Canadian Forces Pension Fund Account
(in dollars)
  2024 2023
Opening balance 25,027,599 (negative 44,282,772)
Receipts and other credits
Contributions from personnel 662,964,198 556,570,764
Contributions by the government 1,060,048,956 911,477,803
Transfers from other pension funds 6,526,786 73,663,006
OtherLinks to footnote 1 in table 7 504,495 487,013
Total receipts and other credits 1,730,044,435 1,542,198,586
Payments and other charges
Benefit payments
Pensions and retiring allowances 1,202,323,444 1,070,377,219
Minimum benefits 2,177,371 1,898,253
Pension division payments 32,420,462 37,227,798
Pension transfer value payments 123,833,368 201,579,270
Return of contributions 1,804,192 1,873,549
Transfers to other pension funds 1,113,376 981,337
Administrative expenses 38,231,256 23,950,789
Total payments and other charges 1,401,903,469 1,337,888,215
Receipts and other credits less payments and other charges 328,140,966 204,310,371
Transfers to PSPIB 313,027,599 135,000,000
Closing balance 40,140,966 25,027,599

Reserve Force Pension Fund Account

This account is used to record the transactions in respect of service accrued on or after March 1, 2007, in accordance with Part I.1 of the Canadian Forces Superannuation Act. When the closing balance of this account is in a positive net cash position, an amount equal to contributions less benefits payments and other charges is usually transferred to the PSPIB for investment.

Table 6.19
Reserve Force Pension Fund Account
(in dollars)
  2024 2023
Opening balance (negative 110,498,464) (negative 98,754,921)
Receipts and other credits
Contributions from personnel 28,435,887 23,859,917
Contributions by the government 63,153,292 55,791,150
Actuarial adjustment 4,100,000 17,400,000
Total receipts and other credits 95,689,179 97,051,067
Payments and other charges
Benefit payments
Pensions and retiring allowances 14,856,756 13,203,923
Minimum benefits 207,080 86,482
Pension transfer value payments 12,857,464 15,499,112
Return of contributions 190,391 263,045
Transfers to other pension funds 6,195,520 73,433,781
Administrative expenses 6,803,085 6,308,267
Total payments and other charges 41,110,296 108,794,610
Receipts and other credits less payments and other charges 54,578,883 (negative 11,743,543)
Closing balance (negative 55,919,581) (negative 110,498,464)

Royal Canadian Mounted Police Superannuation Account

This account, established by the Royal Canadian Mounted Police Superannuation Act, is used to record all transactions (contributions, benefit payments, transfers and interest credits) in respect of service accrued by Royal Canadian Mounted Police members up to March 31, 2000.

Table 6.20
Royal Canadian Mounted Police Superannuation AccountLinks to footnote * in table 9
(in dollars)
  2024 2023
Opening balance 13,920,882,906 13,051,955,194
Receipts and other credits
Contributions from personnel (current services and arrears) 306,369 359,874
Contributions by the government 250,569 274,262
Actuarial adjustment – 1,220,000,000
Interest 419,816,708 404,408,117
Total receipts and other credits 420,373,646 1,625,042,253
Subtotal 14,341,256,552 14,676,997,447
Payments and other charges
Benefit payments
Annuities and allowances 779,637,443 745,331,576
Cash termination allowance and gratuities – 123,129
Pension division payments 2,742,534 4,137,853
Pension transfer value payments 23 5,378
Return of contributions – 246
Transfers to other pension funds – 29,677
Administrative expenses 6,868,221 6,486,682
Total payments and other charges 789,248,221 756,114,541
Closing balance 13,552,008,331 13,920,882,906

Royal Canadian Mounted Police Pension Fund Account

This account is used to record the transactions in respect of service accrued on or after April 1, 2000, under the Royal Canadian Mounted Police Superannuation Act. An amount equal to contributions less benefits payments and other charges is transferred to the PSPIB for investment. The closing balance in this account represents the net cash position prior to the transfer to the PSPIB.

Table 6.21
Royal Canadian Mounted Police Pension Fund AccountLinks to footnote * in table 10
(in dollars)
  2024 2023
Opening balance 5,483,476 121,717,797
Receipts and other credits
Contributions from personnel (current services and arrears) 270,105,420 267,825,074
Contributions by the government 326,870,896 328,072,288
Transfers from other pension funds 16,824,727 10,844,995
Total receipts and other credits 613,801,043 606,742,357
Payments and other charges
Benefit payments
Annuities and allowances 396,224,298 345,649,604
Minimum benefits 215,985 638,353
Pension division payments 11,592,570 16,177,594
Pension transfer value payments 18,210,546 44,731,041
Return of contributions
Personnel 409,093 128,032
Interest 41,204 –
Transfers to other pension funds 3,427,812 13,028,813
Administrative expenses 6,327,207 5,724,693
Total payments and other charges 436,448,715 426,078,130
Receipts and other credits less payments and other charges 177,352,328 180,664,227
Transfers to PSPIB 179,081,607 296,898,548
Closing balance 3,754,197 5,483,476

Members of Parliament Retiring Allowances Account

This account was established by the Members of Parliament Retiring Allowances Act to provide pension benefits to eligible Members of Parliament who contributed to the plan. “Member” means a member of the Senate or the House of Commons. Benefits are also available to eligible survivors or eligible dependent children of Members who served on or after a certain date and contributed under the Act.

Table 6.22
Members of Parliament Retiring Allowances AccountLinks to footnote * in table 11
(in dollars)
  2024 2023
Opening balance 630,156,633 628,748,189
Receipts and other credits
Members' contributions
Current services 11,067,075 10,931,317
Arrears of principal, interest and mortality insurance 15,553 14,906
Government contributions (current services) 11,067,075 10,931,317
Acturial adjustment 8,300,000 –
Interest 16,064,462 10,468,217
Total receipts and other credits 46,514,165 32,345,757
Subtotal 676,670,798 661,093,946
Payments and other charges
Benefit payments
Annual allowances 32,307,980 30,805,062
Return of contributions
Withdrawals 135,147 122,289
Interest 40,330 9,962
Total payments and other charges 32,483,457 30,937,313
Closing balance 644,187,341 630,156,633

Members of Parliament Retirement Compensation Arrangements Account

This account was established by the Members of Parliament Retiring Allowances Act to provide for benefits in respect of pension credits accrued by Members of Parliament which are not payable out of the Members of Parliament Retiring Allowances Account. Benefits are also available to eligible survivors or eligible dependent children of Members.

Table 6.23
Members of Parliament Retirement Compensation Arrangements AccountLinks to footnote * in table 12
(in dollars)
  2024 2023
Opening balance 239,875,279 239,363,634
Receipts and other credits
Members' contributions
Current services 8,961,687 8,690,417
Arrears of principal, interest and mortality insurance 67,525 69,957
Government contributions (current services) 8,961,688 8,690,417
Actuarial adjustment 26,900,000 –
Interest 6,103,869 4,107,648
Total receipts and other credits 50,994,769 21,558,439
Subtotal 290,870,048 260,922,073
Payments and other charges
Benefit payments
Annual allowances 21,726,772 20,520,817
Return of contributions
Withdrawals 94,657 326,422
Interest 7,628 17,620
Refundable tax 830,211 181,935
Total payments and other charges 22,659,268 21,046,794
Closing balance 268,210,780 239,875,279

Retirement Compensation Arrangements Accounts

The Retirement Compensation Arrangements (RCA) Accounts were established by the Special Retirement Arrangements Act to provide supplementary pension benefits to certain federal employees.

The RCA Regulations, No. 1 (RCA No. 1) provides for pension benefits in excess of those permitted under the Income Tax Act for the pensions paid under the Public Service Superannuation Act, the Canadian Forces Superannuation Act and the Royal Canadian Mounted Police Superannuation Act. The RCA No. 1 was created effective December 15, 1994.

The RCA Regulations, No. 2 (RCA No. 2) provides for pension benefits to public service employees who were declared surplus as a result of a three-year early retirement incentive program that ended on March 31, 1998. It pays the difference between an unreduced pension and the reduced pension for early retirement payable from the Public Service Superannuation Account. The RCA No. 2 was created effective April 1, 1995, and is funded entirely by the government.

Table 6.24
Retirement Compensation Arrangements AccountsLinks to footnote * in table 13
(in dollars)
  RCA No. 1 RCA No. 2 Total
Public Service Canadian Forces Royal Canadian Mounted Police Public Service
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Opening balance 1,404,077,730 1,349,219,396 514,800,278 498,611,345 36,331,403 35,361,112 528,295,402 562,871,488 2,483,504,813 2,446,063,341
Receipts and other credits
Employee contributions
Government employees 19,402,359 15,987,965 6,146,852 4,520,201 240,168 718,877 – – 25,789,379 21,227,043
Retired employees 405,978 555,684 – – (negative 117) 2,953 – – 405,861 558,637
Public Service corporation employees 2,332,252 2,220,308 – – – – – – 2,332,252 2,220,308
Employer contributions
Government 100,961,142 92,585,584 38,005,999 28,091,137 490,620 2,140,796 – – 139,457,761 122,817,517
Public Service corporations 11,887,576 12,581,099 – – – – – – 11,887,576 12,581,099
Transfers from other pension funds (negative 88) – – – – – – – (negative 88) –
Refundable tax – – – – 114,963 – 35,560,994 33,383,033 35,675,957 33,383,033
Interest 43,853,448 43,055,196 16,188,227 16,036,172 1,100,725 1,127,650 15,281,885 16,830,187 76,424,285 77,049,205
Other – – – – – – 1,421,280 – 1,421,280 –
Subtotal 178,842,667 166,985,836 60,341,078 48,647,510 1,946,359 3,990,276 52,264,159 50,213,220 293,394,263 269,836,842
Total 1,582,920,397 1,516,205,232 575,141,356 547,258,855 38,277,762 39,351,388 580,559,561 613,084,708 2,776,899,076 2,715,900,183
Payments and other charges
Benefit payments
Annuities 80,266,051 72,433,738 15,303,664 13,967,341 2,182,957 2,050,216 87,237,379 84,789,306 184,990,051 173,240,601
Minimum benefits 167,093 110,302 – – – – – – 167,093 110,302
Pension division payments 127,977 268,788 1,182,763 435,173 – – – – 1,310,740 703,961
Pension transfer value payments 564,448 597,323 1,682,225 809,238 1,773 465 – – 2,248,446 1,407,026
Return of contributions
Government employees 13,917 23,056 35 – – – – – 13,952 23,056
Public Service corporation employees 13,948 14,484 – – – – – – 13,948 14,484
Transfers to other pension funds 1,000,444 9,589 – – 1,019 282 – – 1,001,463 9,871
Refundable tax 52,908,607 38,670,222 20,208,142 17,246,825 – 969,022 – – 73,116,749 56,886,069
Total 135,062,485 112,127,502 38,376,829 32,458,577 2,185,749 3,019,985 87,237,379 84,789,306 262,862,442 232,395,370
Closing balance 1,447,857,912 1,404,077,730 536,764,527 514,800,278 36,092,013 36,331,403 493,322,182 528,295,402 2,514,036,634 2,483,504,813

Supplementary Retirement Benefits Account

This account was established by the Supplementary Retirement Benefits Act to provide for pension benefit increases resulting from changes in the Consumer Price Index. The account continues to provide for increased pension benefits resulting from indexation for pensions of federally appointed judges, and recipients of pensions under various continuation acts and other related acts.

Table 6.25
Supplementary Retirement Benefits AccountLinks to footnote * in table 14
(in dollars)
  Judges OthersLinks to footnote 1 in table 14 Total
2024 2023 2024 2023 2024 2023
Opening balance 295,762,840 278,587,467 1,151,646 1,077,396 296,914,486 279,664,863
Receipts and other credits
Employee contributions
Government 4,566,458 4,457,830 62,506 59,847 4,628,964 4,517,677
Employer contributions
Government 4,573,897 4,457,830 62,506 59,847 4,636,403 4,517,677
Interest 10,015,552 8,259,713 43,031 34,444 10,058,583 8,294,157
Total receipts and other credits 19,155,907 17,175,373 168,043 154,138 19,323,950 17,329,511
Subtotal 314,918,747 295,762,840 1,319,689 1,231,534 316,238,436 296,994,374
Payments and other charges
Return of contributions – – (negative 44,313) 44,313 (negative 44,313) 44,313
Annuities – – 40,285 35,575 40,285 35,575
Closing balance 314,918,747 295,762,840 1,323,717 1,151,646 316,242,464 296,914,486

Allowance for pension adjustments

This account records the accounting adjustments resulting from annual actuarial valuations of public sector pension plans sponsored by the government.

Actuarial losses of $343 million ($1,255 million in 2023), due to plan experience and changes in actuarial assumptions, were recognized in this account and increased pension expenses for the year.

An amount of $ 3,337 million ($1,237 million in 2023) was recorded in this account to offset the amortization of deficiencies charged to the pension fund accounts and superannuation accounts during the year but already accounted for in previous years’ expenses or in actuarial gains and losses.

An amount of $1,241 million ($186 million in 2023) was debited from this account and decreased pension costs to adjust for the difference between the government contributions and the net cost of benefits earned.

An amount of $ 12,253 million (9,341 million in 2023) was credited to this account to adjust for the difference between interest based on the accrued pension obligations and interest credited to the superannuation accounts. Also, an amount of $14,335 million ($11,583 million in 2023) was debited from this account to record the expected return on the pension investments.

As well, a consolidation adjustment of $38 million ($24 million in 2023) was credited to this account and debited against personal tax revenues to eliminate the effect of internal transactions resulting from tax amounts debited from the RCA accounts that were previously recorded as tax revenues.

The unrecognized net actuarial gains of $40,581 million ($27,187 million gains in 2023) will be recognized in this account and will affect expenses in future years.

Due to annual actuarial valuations for accounting purposes, the accrued pension obligations of $360,778 million ($358,243 million in 2023) minus the pension assets of $253,341 million ($229,822 million in 2023) were $44,256 million lower ($24,583 million lower in 2023) than the balance of the pension fund accounts of $17 million ($(68) million in 2023) and the superannuation accounts of $151,676 million ($153,072 million in 2023). The excess or shortfall is made up of the following:

Table 15:(in millions of dollars)
  (Shortfall) excess
2024 2023
Public Service Pension Plan
Public Service Superannuation Account (negative 888) (negative 3,473)
Public Service Pension Fund 40,639 31,913
Retirement Compensation Arrangements (negative 1,379) (negative 1,472)
Total allowance for Public Service Pension Plan 38,372 26,968
Canadian Forces Pension Plan
Canadian Forces Superannuation Account 2,214 (negative 2,680)
Canadian Forces Pension Fund 7,028 5,005
Reserve Force Pension Fund (negative 476) (negative 438)
Retirement Compensation Arrangements 172 (negative 175)
Total allowance for Canadian Forces Pension Plan 8,938 1,712
Royal Canadian Mounted Police Pension Plan
Royal Canadian Mounted Police Superannuation Account 79 (negative 324)
Royal Canadian Mounted Police Pension Fund 2,562 1,925
Retirement Compensation Arrangements (negative 35) (negative 37)
Total allowance for Canadian Mounted Police Pension Plan 2,606 1,564
Members of Parliament Pension Plan
Members of Parliament Retiring Allowances (negative 49) (negative 99)
Retirement Compensation Arrangements (negative 293) (negative 330)
Total allowance for Members of Parliament Pension Plan (negative 342) (negative 429)
Pension plan for federally appointed judges (negative 5,318) (negative 5,232)
Total 44,256 24,583

Other employee and veteran future benefits

The government and the consolidated Crown corporations and other entities sponsor different types of future benefit plans with varying terms and conditions. The benefits are available to employees and former employees (including military or Royal Canadian Mounted Police members) during or after employment, or upon retirement. Some are considered retirement benefits, whereby benefits are expected to be provided after retirement to employees and their beneficiaries or dependants. Others are considered post-employment benefits, whereby benefits are expected to be paid after employment but before retirement. Benefits for veterans are paid to war veterans, as well as to Canadian Forces retired veterans and Canadian Forces still-serving members. Benefits for members of the Royal Canadian Mounted Police are paid to both current and former members. These are primarily post-employment benefits, but some benefits are also paid during employment to still-serving members. They include disability and associated benefits paid to veterans or Royal Canadian Mounted Police members, or to their beneficiaries and dependants.

The other major future benefits include health care and dental benefits available to retired employees and retired military and Royal Canadian Mounted Police members, accumulated sick leave entitlements and post-employment benefits such as workers’ compensation benefits and severance benefits that accumulate.

Table 6.26
Other employee and veteran future benefits
(in millions of dollars)
  April 1, 2023 Receipts and other credits Payments and other charges March 31, 2024
Veterans' disability and other future benefits 108,127 18,067 5,494 120,700
Royal Canadian Mounted Police disability and other future benefits 22,412 5,023 683 26,752
Public Service Health Care Plan 35,215 1,888 1,003 36,100
Pensioners' Dental Services Plan 5,710 378 144 5,944
Severance and other benefits 1,790 238 169 1,859
Accumulated sick leave entitlements 2,211 449 354 2,306
Workers' compensation 2,160 463 248 2,375
Consolidated Crown corporations and other entities 324 25 35 314
Total 177,949 26,531 8,130 196,350

All the government and most of the consolidated Crown corporations and other entities’ sponsored plans are unfunded. The health care and the dental plans are contributory plans. Retired plan members contribute to the plans to obtain coverage. Therefore the liabilities and costs are shown net of members’ contributions. The accrued benefit obligations amount related to these plans is determined actuarially for accounting purposes. As at March 31, the recorded liabilities included the following components: 

Table 17:(in millions of dollars)Links to footnote * in table 17
  2024 2023
Accrued benefit obligations Other future benefit assets Unrecognized net actuarial (losses) gains Benefits paid after measurement date up to March 31 Future benefit liabilities Future benefit liabilities
Veterans' disability and other future benefits 157,222 – (negative 36,523) – 120,699 108,127
Royal Canadian Mounted Police disability and other future benefits 34,989 – (negative 8,237) – 26,752 22,412
Public Service Health Care Plan 24,488 – 11,611 – 36,099 35,215
Pensioners' Dental Services Plan 4,815 – 1,128 – 5,943 5,710
Severance and other benefits 1,951 – (negative 90) – 1,861 1,790
Accumulated sick leave entitlements 1,984 – 322 – 2,306 2,211
Workers' compensation 2,226 – 150 – 2,376 2,160
Consolidated Crown corporations and other entities 236 – 79 (negative 1) 314 324
Total 227,911 – (negative 31,560) (negative 1) 196,350 177,949

The cost of these benefits can accrue either during the service life of employees or upon occurrence of an event generating the liability under the terms of the plans. An interest component is charged to expense based on the average accrued benefit obligation.

During the year, expenses relating to these benefits were as follows:

Table 18:(in millions of dollars)Links to footnote * in table 18
  2024 2023
Benefits earned included personel expense Amendment costs (cost reductions) Curtailment costs (cost reductions) Settlement costs (cost reductions) Actuarial losses (gains) recognized Total benefit expense Interest expense Total Total
Veterans' disability and other future benefits 7,164 – – – 6,244 13,408 4,658 18,066 18,587
Royal Canadian Mounted Police disability and other future benefits 2,630 – – – 1,338 3,968 1,055 5,023 4,491
Public Service Health Care Plan 1,116 – – – (negative 428) 688 772 1,460 537
Pensioners' Dental Services Plan 197 – – – 28 225 153 378 368
Severance and other benefits 138 – – – 42 180 59 239 219
Accumulated sick leave entitlements 387 – – – (negative 15) 372 62 434 411
Workers' compensation 389 – – – 8 397 66 463 477
Consolidated Crown corporations and other entities 15 – – – (negative 12) 3 10 13 18
Total 12,036 – – – 7,205 19,241 6,835 26,076 25,108

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