Superannuation Administration Manual—Special Bulletin 2011-002

Subject: New Processes for Pension Benefit Entitlements and Survivor Pension Entitlements

April 11, 2011 Updated February 27, 2015

1. Purpose

1.1. The purpose of this bulletin is to inform compensation advisors and pay offices (PO)s of the new process delivery model for pension benefit entitlements and survivor pension entitlements. The new processes apply when a plan member terminates employment from the public service or when a death in service occurs.

1.2. This directive should be read in conjunction with the Superannuation Administration Manual Superannuation Administration Manual—Special Bulletin 2011 005 entitled "Government of Canada Pension Modernization Project (GCPMP)—Release 2.0—New Processes for Return of Contributions Upon Termination of Employment".

1.3. In accordance with the new process, the "Your Public Service Pension and Benefits" Web portal, the Superannuation Administration Manual (SAM), the Superannuation Procedures Manual—Public Service Corporations (PSC), superannuation bulletins, compensation directives, national training courses, virtual pay checklists and procedure guides, as well as various forms, have been amended or deleted.

Updated 1.4. It is suggested that client organizations provide the following information to plan members upon termination:

Updated As a member of the public service pension plan terminating employment with the public service, you are required to contact the Government of Canada Pension Centre in order to receive your personalized pension estimate package. This information, prepared in advance of your departure, will include descriptions and estimates of the pension options available to you upon termination, as well as the forms required to initiate your retirement process. It is important to note that making your pension option can be time sensitive, with financial implications in certain situations, therefore you should contact the Pension Centre before terminating employment or very soon after. For the Pension Centre's contact information, please visit the web page Your Public Service Pension and Benefits—Contact Us Web portal. Prior to receiving your benefit information, you are encouraged to consult the Your Public Service Pension and Benefits Web portal for additional information on terminating employment with the public service.

1.5. It is important that our client focus is maintained and that plan members receive uninterrupted service during the implementation of these process changes.

2. Background

2.1. On June 13, 2007, the TBS granted approval to proceed with two transformations of pension administration initiatives, the GCPMP and the Centralization of Pension Services Delivery Project. The objectives of these initiatives are to renew PWGSC nearly 40 year old pension administration system, transform business processes and centralize the delivery of pension services to a centre of expertise within PWGSC, namely the Pension Centre, in Shediac, New Brunswick.

2.2. Accordingly, the GCPMP team was established to develop and progressively implement pension services and business processes in accordance with the new model, which allows for self-service options and access to pension expertise through various channels. The project will bring about significant changes in the way pension services are delivered.

2.3. In addition, the Centralization of Pension Services Delivery Project was established to provide best practice pension administration services to all employees subject to the public service pension plan. This is being accomplished by progressively implementing new and redeveloped pension services delivered centrally from the Pension Centre. Centralization, in concert with the Pension Modernization Project, presents an opportunity to improve the consistency, accuracy and timeliness of service delivery at a reduced cost, to enable direct problem resolution, and to eliminate duplication of effort and inherent deficiencies of the current delivery model.

3. Policy

3.1. Effective April 11, 2011, the Pension Centre will be responsible for administering pension benefit entitlements for plan members associated with terminations of employment from the public service for all departments, Crown corporations, agencies and territorial governments that are subject to the public service pension plan. The Pension Centre will also be responsible for the pension administration of death in service situations for plan members' survivors or legal representatives.

4. Definition

4.1. The Pension Benefit Entitlements service is defined as the provision of pension benefit information to plan members on pension benefit options and estimates, the provision of Supplementary Death Benefit information, and explanation of the pension administrative process for terminations of employment, including the facilitation and completion of required forms.

The Survivor Pension Entitlements service is defined as the processing and payment of pension benefit entitlements to plan members' survivors or legal representatives, and providing guidance on the administrative process and completion of required forms.

In order to make pension benefit payments to plan members or their survivors or legal representatives, pensionable service will be validated, and data collected from employers, plan members and their survivors or legal representatives, as required.

5. Procedures and Instructions

5.1. The Pension Centre will be responsible for providing general and personalized pension benefit entitlements and survivor pension entitlements information to plan members and, in the case of death in service, to their survivors or legal representatives.

5.2. When a termination of employment for a plan member occurs (such as, but not limited to, the receipt of a notice of resignation or retirement, end of term, layoff, or medical retirement), compensation advisors will direct plan members to the Pension Entitlement Information Packages or to the "Contact Us" Web pages both located on the Your Public Service Pension and Benefits Web portal, or advise them to contact the Pension Centre if they do not have Internet access.

The same process should be followed when inquiries are received for pension benefit estimates or information about the public service pension plan termination of employment process, including the completion of forms.

When a death in service occurs, compensation advisors should advise the plan members' survivors or legal representatives to contact the Pension Centre and provide the "Contact Us" Web page located on the Your Public Service Pension and Benefits Web portal. Further information on Becoming a Survivor (accessible only on the Government of Canada network) is also available on the Web portal.

5.3. Compensation advisors continue to be responsible for capturing correct data and terminating employment appropriately for plan members. For procedures and information on the new process, reference should be made to the documents included with this Superannuation Administration Manual Special Bulletin:

  • Transitional Implementation Guidelines
  • Transmission of Pension Request/Payment document
  • Work Procedures for Compensation Advisors, Pay Offices and the Pension Centre
  • Roles and Responsibilities
  • Contact Information

5.4. The links to the new forms and to the Pension Entitlement Information Packages, provided in these documents, will ONLY be available effective April 11, 2011.

5.5. As part of the Government of Canada's initiative to modernize the public service pension systems, processes have been streamlined and a new pension solution has been adopted. This new solution includes the standard header forms which support imaging technology and enables the automation of activities. As the older versions of the forms do not support the new solution, in order for PWGSC to continue to benefit from this innovative technology and to ensure the best possible service for employees, we remind you of the importance of using the new version of the compensation forms.

5.6. Until the final centralization of leave without pay (LWOP), scheduled to be implemented next year, compensation advisors remain responsible for the full LWOP process.

6. Communications

6.1. The Centralization project team will monitor the progress of this service following implementation, and will keep you informed of the results.

7. Publications

7.1. The SAM will be updated to incorporate the relevant information contained in this bulletin.

8. Inquiries

8.1. Inquiries regarding the information contained in this document should be addressed to the Pension Centre. Inquiries regarding the pension implications of leave without pay and Social Insurance Number (SIN) and Personal Record Identifier (PRI) problems should be addressed to your PWGSC Compensation Services Office.

Original Signed by
Carrie E. Roussin

Carrie E. Roussin
Director General
Compensation Sector
Accounting, Banking and Compensation

Transitional Implementation Guidelines

April 11, 2011 Updated February 27, 2015

These guidelines will explain what should be done with pension work remaining with the compensation advisor on April 11, 2011, and are only to be followed for outstanding work on implementation. The new processes to be followed for Pension Benefit Entitlements and Survivor Pension Entitlements can be found in the Work Procedures document.

It is expected that organizations will complete all pension benefit and survivor pension entitlements work received prior to implementation. The Pension Support System (PSS) will be unavailable for both compensation advisors and the Pension Centre as of March 31, 2011. The conversion of data from the current system to the new pension solution will take place between March 31 and April 11, 2011. Plan members can be advised to contact the Pension Centre on April 11, 2011 or later. Detailed instructions on the completion of work are provided below:

Transmission of Pension Request or Payment Pension Benefit Estimates

Compensation advisors will complete requests for pension benefit estimates received prior to March 31, 2011. In order to do so, compensation advisors must perform all necessary pension calculations in the PSS prior to March 31, 2011.

For requests not completed, compensation advisors must complete and forward a "Transmission of Pension Request/Payment" document to the plan member and the Pension Centre.

Terminations of Employment

Current termination of employment processes must continue to be followed until April 11, 2011, regardless of a plan member's termination date or date of death.

Compensation advisors are reminded to complete the compensation advisor portion of all pension documents before sending to plan members for completion, such as the current Deductions from Annuity or Annual Allowance (PWGSC-TPSGC 1422) form or the Election To Continue As A Participant Under The Supplementary Death Benefit Plan (PWGSC-TPSGC 2017) form.

If a plan member returns completed pension documents to the compensation advisor after April 11, 2011, the following applies:

  • A completed "Transmission of Pension Request/Payment" document must be forwarded to the plan member
  • The compensation advisor must send all completed documents to the Pension Centre, along with a copy of the "Transmission of Pension Request/Payment"
  • The Pension Centre will review all documents for completeness and follow up with the plan member, if required

Terminations of Employment Note

When a plan member who received pension documents from a compensation advisor contacts the Pension Centre after April 11, 2011, he will be advised to forward his pension forms directly to the Pension Centre and to advise his compensation advisor of such.

"Submit" action in the Pension Support System

As the PSS will be unavailable as of March 31, 2011, "Submit" actions in the PSS (providing verification of salary, service and LWOP information) cannot be performed after that date.

Compensation advisors must ensure "submits" are done for all termination of employment transactions that have or will be done prior to March 31, 2011. For employers that do not use the PSS, the process for submitting salary, service, and LWOP data remains the same until April 11, 2011.

In addition, prior to March 31, 2011, to ensure a smooth transition for plan members and their survivors or legal representatives, we are asking that compensation advisors review and verify in the PSS, in advance, the salary, service, and LWOP data for termination dates of July 11, 2011, or earlier. Data can also be submitted for retirements with termination dates in 2011. Employers not using the PSS are asked to complete a "Salary Service Information-Pension Support System" form (PWGSC-TPSGC 2020).

Return of Contributions

The current process of completing a "Request for Return of Superannuation Contributions - Direct Input Document (Regional Pay System only)" (PWGSC-TPSGC 2577) and forwarding it to the PO will remain in effect until March 30, 2011. Requests for payments of Returns of Contributions (ROC) between March 31 and April 11, 2011, should be sent to the Pension Centre using a "Transmission of Pension Request/Payment" document.

For non-Regional Pay System (RPS) users, the Pension Centre will continue to pay the ROC.

If a plan member returns completed pension documents to the compensation advisor or advises of method of payment for a ROC (cash versus Registered Retirement Savings Plan (RRSP)/Registered Pension Plan (RPP)) in another manner after March 30, 2011, the following applies:

  • A completed "Transmission of Pension Request/Payment" document must be forwarded to the plan member
  • The compensation advisor must send a copy of the "Transmission of Pension Request/Payment" document to the Pension Centre, along with the plan member's chosen method of payment for a ROC (cash versus RRSP/RPP)
  • The Pension Centre will review, pay the ROC and follow up with the plan member, if required

"Transmission of Pension Request/Payment" Document

The document "Transmission of Pension Request/Payment", found in this SAM Special Bulletin, is to be used to facilitate the transfer of work received from a plan member to the Pension Centre.

The document must be fully completed by the compensation advisor, including the type of request, before being sent to the plan member or the Pension Centre.

Death in Service

Due to the sensitivity of death in service cases, it is important that plan members' survivors or legal representatives be provided assistance from both the compensation advisors and the Pension Centre during the transition period.

For a death in service that occurs during the transition period, compensation advisors must indicate, on the Notification of Death In Service (PWGSC-TPSGC 2014) form, whether or not plan members' survivors or their legal representatives have been provided with any pension benefit information. When it is indicated that information has not been provided, the Pension Centre will contact the plan members' survivors or their legal representatives to provide the necessary information.

The document "Transmission of Pension Request/Payment" should not be sent to a plan member's survivors or their legal representatives.

Transmission of Pension Request or Payment

April 11, 2011

Alert: The form is now obsolete and should no longer be used.

This form was designed only to forward outstanding work to the Pension Centre on implementation of the pension benefit entitlements service.

TO: Plan member

FROM: Compensation

As of April 11, 2011, the Pension Centre is now responsible for all pension benefit entitlement activities, including pension benefit estimates and pension counseling on termination of employment. We have therefore forwarded your request for pension information/payment to the Pension Centre for processing.

"Your Public Service Pension and Benefits" Web portal guides you through determining your estimated pension entitlements and steps to follow when you are terminating employment. We encourage you to visit the site at: Your Public Service Pension and Benefits. Further information is also available in the Pension Entitlement Termination Package at: PWGSC—Pension Entitlement.

The Pension Centre will process your request. Should additional information be required, you will be contacted within three weeks.

The Pension Centre contact information is available at:

Public Works and Government Services Canada
Government of Canada Pension Centre—Mail Facility
PO Box 8000
Matane QC G4W 4T6
Toll free: 1-800-561-7930
Outside Canada and the United States: 0-506-533-5800
Telephone Teletype (TTY): 0-506-533-5990
Fax: 418-566-6298

Required information for the Pension Centre

Plan member information

Name:

PRI:

Home Address:

Preferred telephone number:

Request for Pension Information/Payment

[ ] Request for Pension Benefit Estimate

[ ] Termination notice received in organization—pension counseling required

[ ] Completed termination documents received from plan member—to process

[ ] Outstanding ROC payment (include method of payment information—cash vs. RRSP)

Date of request/notification:

Expected termination date (for Pension Benefit Estimate or Termination of Employment):

Date request forwarded to the Pension Centre:

Additional Information:

Note: Retain copies of all documents related to this request that have been forwarded to the Pension Centre, such as resignation letter, email request for pension benefit estimate, etc.

Compensation Advisor Information

Name:

Phone number:

Fax number:

Once this document is completed:

Provide a copy to the plan member:

Send a copy with any pertinent documents to the Pension Centre at:

Public Works and Government Services Canada
Government of Canada Pension Centre—Mail Facility
PO Box 8000
Matane QC G4W 4T6
Fax: 418-566-6298

Work Procedures

April 11, 2011 Updated February 27, 2015

For Compensation Advisors, Pay Offices and the Pension Centre

Pension Benefit Entitlements and Survivor Pension Entitlements

Effective April 11, 2011, the provision of services with respect to the pension benefit entitlements and survivor pension entitlements processes to plan members and their survivors or legal representatives will be the responsibility of the Pension Centre located in Shediac, New Brunswick. The centre of expertise will provide both individualized and general information to plan members and their survivors or legal representatives.

A chart outlining the roles and responsibilities of all stakeholders involved in the pension benefit entitlements and survivor pension entitlements processes has been included with this SAM Special Bulletin.

In addition, transition implementation guidelines are given to explain what should be done with pension work remaining with the compensation advisor on April 11, 2011.

Throughout all documents, reference is made to compensation advisors and PO. Compensation advisors include individuals in departments, Crown corporations, agencies and territorial governments. POs include regional and non-regional POs (offices providing pay services to employers not serviced by the RPS) unless otherwise specified.

The pension benefit entitlements service includes the provision of pension benefit information to plan members on pension benefit options and estimates, the provision of supplementary death benefit information, and explanation of the pension administrative process for terminations of employment, including the facilitation and completion of required forms.

The survivor pension entitlements service includes the processing and payment of pension benefit entitlements to plan members' survivors or legal representatives, and providing guidance on the administrative process and completion of required forms.

In order to make pension benefit payments to plan members or their survivors or legal representatives, pensionable service will be validated and data collected from employers, plan members and their survivors or legal representatives, as required.

Below is an outline of the new processes for pension benefit entitlements and survivor pension entitlements effective April 11, 2011.

Contacting the Pension Centre

When required, compensation advisors must contact the Pension Centre using the Your Public Service Pension and Benefits—Contact Us, for any questions related to a specific employee.

The new Employer Support Services contact information should only be used by compensation managers for any pension related corporate issues, such as work force adjustment situations or labour relations cases.

Request for Pension Benefit Entitlements Information

Effective April 11, 2011, compensation advisors receiving a request for pension benefit entitlements information will refer plan members to the Your Public Service Pension and Benefits Web portal for general information and provide the Pension Centre contact information.

Your Public Service Pension and Benefits—Contact Us, available on the Your Public Service Pension and Benefits Web portal, includes the Web portal address as well as the Pension Centre global email address, toll free telephone number, facsimile number and mailing address.

Pension Entitlement Information Packages are available on the Your Public Service Pension and Benefits Web portal, providing plan members with important pension information needed when leaving the federal public service, including a detailed explanation of pension benefit options, an explanation of the administrative process and the necessary forms.

The Pension Centre will provide the requested information and promote the use of the Web portal. The Pension Centre will also provide a support function to help members navigate through the pension benefit entitlements information and provide explanations, if necessary.

Notes

The Pension Centre will not share a plan member's personal information with the employer. When asked by the employer, the Pension Centre will send pension information directly to the plan member, including the medical retirement process, if required.

Compensation advisors should encourage plan members using the telephone system to select the appropriate service option to ensure prompt assistance of a pension expert. If they do not select an option and press "0" to reach an operator, they may experience longer delays.

Request for Survivor Pension Entitlements Information

As previously indicated in the ARCHIVED SAM—Special Bulletin 2008-004—Spousal and Dependants Benefits Information, when asked about general spousal and dependants benefits information, compensation advisors will continue to provide the Pension Centre contact information to plan members, spouses, dependants and/or legal representatives. The Your Public Service Pension and Benefits—Contact Us, available on the Your Public Service Pension and Benefits Web portal, includes the Web portal address as well as the Pension Centre global email address, toll free telephone number, facsimile number and mailing address.

Plan members' survivors or legal representatives can be referred to the Becoming a Survivor (accessible only on the Government of Canada network) information available on the Web portal.

The Pension Centre will provide the requested information and promote the use of the Web portal for general information.

Request for Survivor Pension Entitlements Information Pension Benefit Estimates

Effective April 11, 2011, requests for pension benefit estimates received by a compensation advisor, either from a plan member or a plan member's survivor or legal representative will be the responsibility of the Pension Centre.

Plan members' requests for information on the effect on pension benefit entitlements of changing hours of work should also be referred to the Pension Centre.

Plan members should be provided with the Pension Centre contact information available on the Your Public Service Pension and Benefits—Contact Us Web portal and be directed to visit the Pension Calculator.

Plan members' survivors or their legal representatives should be provided with the Pension Centre contact information.

When contacted by a plan member's survivor and/or legal representative, the Pension Centre will provide pension benefit estimates immediately based on readily available information.

Notes

Additional information will be provided, along with the pension benefit estimate, when plan members indicate their intention of leaving the federal public service in the near future. (See the section on termination of employment).

Compensation advisors must ensure that correct data is entered in the pay systems, which in turn will be fed to the new pension solution. This will ensure that plan members do not receive erroneous pension benefit estimates.

The Pension Centre will be unable to provide pension benefit estimates if an account has a critical error. The pension expert will investigate the error and request clarification or correction from the compensation advisor, if required. Once the problem is corrected, the Pension Centre will provide the pension benefit estimate to the plan members and their survivors or legal representatives.

It is important that compensation advisors respond promptly to these requests so that plan members may receive timely pension information.

Retirement Reason for Leaving Codes

The current retirement reason for leaving codes, as listed below, are directly linked to a plan member's pension benefit entitlement.

  • 13—Illness
  • 14—Age
  • 15—Elective (option for annual allowance (AA) or deferred annuity (DA))

Since compensation advisors will no longer be responsible for establishing pension entitlements, there is a need to amend the reason for leaving codes.

Effective April 11, 2011, only the following two retirement reason for leaving codes should be used:

13—Illness: compensation advisors will receive a copy of the "Interpretation of Medical Examination for Pension Purposes" (PWGSC-TPSGC 2012), which will indicate whether a retirement on the grounds of permanent disability is recommended or not.

14—Age: (entitled to an immediate annuity (IA)) will be made obsolete at a later date.

15—Elective: to be used for all retirements (other than illness) for plan members age 50 and over with 2 years or more of pensionable service.

The title of code 15 remains "Elective", however, the description is changed to: Age 50 and over with 2 years or more of pensionable service.

Retirement Reason for Leaving Codes Note

These changes only affect retirement reason for leaving codes. All other reason for leaving codes, as listed in the Personnel-Pay Input Manual (PPIM) Section 3-5-3 (i.e. resignation (outside employment) and end of term), will remain the same and must be used as appropriate.

Termination of Employment of a Pension Plan Member

Effective April 11, 2011, upon notice of a termination of employment of a pension plan member for any reason, except as described in Note 1 below, compensation advisors will provide the Pension Centre contact information and refer plan members to the Your Public Service Pension and Benefits Web portal for general information and to the Pension Entitlement Information Packages, also available on the Web portal.

Current regulations regarding the notice of resignation from the public service will remain in place. Employees must continue to notify their employer of their intention of resigning (plan members contacting the Pension Centre will be reminded to do so).

For death in service situations, plan members' survivors or legal representatives should be advised to contact the Pension Centre and be provided the Your Public Service Pension and Benefits—Contact Us Web page located on the Your Public Service Pension and Benefits Web portal. Further information about Becoming a Survivor (accessible only on the Government of Canada network) is also available on the Web portal.

Plan members' survivors or legal representatives must be advised that a copy of the death certificate will be required and should be forwarded directly to the Pension Centre. If compensation advisors receive a death certificate, a copy can be forwarded to the Pension Centre. Note: The requirement of a death certificate for pay purposes remains unchanged.

When a plan member who is a non-participant under the Supplementary Death Benefit plan dies in service, compensation advisors remain responsible to advise plan members' survivors or legal representatives of any entitlement to a death benefit gratuity (covered in the Directive on Terms and Conditions of Employment), if applicable.

Compensation advisors will continue to be responsible, upon termination of employment, to enter data for the individual plan member's account in the pay system at the appropriate time. This data would include stopping regular salary payments, finalizing the plan member's account and indicating the date and reason of termination.

The cessation date rules used for LWOP situations, as described in SAM Section 2-2-3 still apply. Compensation advisors will continue to advise the Pension Centre in writing when a plan member, who is on authorized or unauthorized LWOP, has terminated or will cease employment. The effective date of cessation of employment is the day following the date the deputy head of the department notifies the Minister (Pension Centre).

When a plan member owes pension and/or Supplementary Death Benefit deficiencies on termination of employment, compensation advisors should advise the member that repayment can be made from termination payments or, in certain situations, from a pension payment. Plan members must be advised to contact the Pension Centre for information on repayment options from pension.

Termination of Employment of a Pension Plan Member Note

All plan members should be advised of outstanding Supplementary Death Benefit deficiencies, whereas only plan members who terminate employment with two or more years of pensionable service should be advised that pension deficiencies are owing.

Questions from employees and their survivors or legal representatives on pay entitlements and application of the rules of pay policies and procedures will continue to be addressed by compensation advisors.

Note 1

Plan members should not be advised to contact the Pension Centre or be referred to the Pension Entitlement Information Packages if they move from a department where Treasury Board is the employer to a Crown Corporation/Separate Employer or vice-versa, or if they move between two Crown Corporations/Separate Agencies both covered under the public service pension plan.

In addition, plan members who are terminated and are to be transferred to another pay system, or to a PO not within the PWGSC Pay System, need not be referred to the Pension Centre.

In change of employer situations, compensation advisors are reminded of the need for the two employers to communicate service buyback information, including deductions to be started and any outstanding deficiencies that need to be recovered.

For death in service situations, outstanding Supplementary Death Benefit deficiencies must not be recovered from salary or termination payments. The Pension Centre will recover any outstanding Supplementary Death Benefit deficiencies from the Supplementary Death Benefit payment.

Compensation advisors must ensure that correct data is entered in the pay system, which in turn will be fed to the new pension solution. This will ensure that plan members do not receive erroneous pension benefit entitlement information.

The Pension Centre will be unable to process pension benefit entitlements if a critical error exists on an account. The pension expert will investigate the error and request clarification or correction from the compensation advisor, if required. Once the problem is corrected, the Pension Centre will process the pension benefit entitlements for plan members, or their survivors or legal representatives.

It is important that compensation advisors respond promptly to these requests ensuring plan members receive timely pension information from the Pension Centre.

The Pension Centre will be responsible for advising plan members, and their survivors or legal representatives, of the complete pension termination process.

When advised of a termination of employment (except death in service), the Pension Centre will provide the plan member with a termination package that includes:

  • a cover letter
  • a personalized "Pension Benefit Options Statement" (PWGSC-TPSGC 2011E-PF)
  • a Pension Benefit Estimates Statement
  • A Supplementary Death Benefit (SDB) Estimates Statement, if applicable
  • Pension Entitlement Information Packages and
  • All other forms required to process a pension benefit entitlement, including applying for insurance coverage on termination, if applicable

When advised of a death in service, the Pension Centre will continue to contact the plan members' named beneficiary under the Supplementary Death Benefit plan and process the Supplementary Death Benefit payment. In addition, the Pension Centre will contact the plan members' survivors or legal representatives to discuss any pension benefit entitlements, along with required documentation and/or forms necessary to process a pension benefit payment.

Note 2

The Pension Centre will not require a copy of a plan member's resignation or retirement notification as the new pension solution, Penfax, will receive termination transaction information. Pension entitlement payments, however, cannot be made until the struck off strength (SOS) termination transaction is completed and fed to Penfax. If information is not sent or if the termination date provided by the plan member does not match the termination date in Penfax, the Pension Centre will then contact the compensation advisor.

Plan members can contact the Pension Centre at any time to obtain information on the pension termination process. However, a personalized "Pension Benefit Options Statement" (PWGSC-TPSGC 2011E-PF) will only be provided when a plan member indicates their intention of leaving the federal public service in the near future. The Pension Centre will remind plan members that their employer must also be notified of their intention of leaving.

The personalized "Pension Benefit Options Statement" (PWGSC-TPSGC 2011E-PF) provides a list and description of the only pension options a plan member is entitled to choose from on termination, on a specific termination date. The plan member indicates his pension choice and returns the form to the Pension Centre for processing.

Plan members can also indicate on the statement if they would like more information on transferring to other organizations, including the Canadian Forces (CF) or the Royal Canadian Mounted Police (RCMP), or information on medical retirements. The Pension Centre will contact the members to discuss these options.

The plan member provides banking information for both monthly pensions and ROC, as applicable, on the statement.

The Pension Benefit Estimates Statement includes calculation parameters such as date of birth, most recent date of joining the plan, date of completing 35 years pensionable service, and highest average salary. In addition to a more detailed description of available pension options, pension benefit estimate amounts are given, including amounts payable prior to age 65 and after age 65, when applicable.

The SDB Estimates Statement includes calculation parameters such as date of birth and salary at termination, including pensionable allowances. A plan member will receive coverage and premium information based on the calculation parameters under Supplementary Death Benefit at regular rate, if entitled or under both regular and commercial rate when there is a choice of pension options. Any required forms are mentioned.

The Pension Entitlement Information Packages include generic pension information which a plan member will need when leaving the federal public service. Included is a detailed explanation of pension benefit entitlements, group insurance benefits, and required forms, as well as an explanation of the administrative details.

Severance Pay Clauses of Collective Agreements

The wording used in the severance pay clauses of most collective agreements is identical. The entitlement to severance pay for reasons of retirement is dependent on a plan member's pension entitlement.

Since compensation advisors, effective April 11, 2011, will no longer be responsible for establishing pension entitlements, some general rules, provided below, will be required to determine when a plan member is entitled to an immediate annuity or an immediate annual allowance and, therefore, would fall under the retirement clause for severance pay purposes. If unsure, the Pension Centre can be contacted for confirmation of entitlement.

For employers whose severance pay entitlements are not based on entitlement to an immediate annuity or an immediate annual allowance but are based on other pension rules, the Pension Centre can be contacted for confirmation of pension entitlement.

General rules to establish entitlement to an immediate annuity or an immediate annual allowance

A plan member is entitled to an immediate annuity or an immediate annual allowance in the following situations:

On termination, at any age, with a medical retirement approval as indicated on the "Interpretation Of Medical Examination For Pension Purposes" (PWGSC-TPSGC 2012) form, and with at least 2 years from the most recent date of becoming a plan member (with no break in service).

Plan members less than age 50, except as described above, are not entitled to an immediate annuity or an immediate annual allowance.

On termination, plan members age 50 or over with at least 2 years from the most recent date of becoming a plan member (with no break in service).

Note

Plan members at any age with at least 20 years of actual operational service with Correctional Services are also entitled to an immediate annuity or an immediate annual allowance.

If a plan member does not fall under the general rules, compensation advisors, if unsure, should contact the Pension Centre to confirm entitlement to an immediate annuity or an immediate annual allowance or ask the plan member for a copy of his/her Pension Benefit Options Statement (PWGSC-TPSGC 2011E-PF). Note: that reference can only be made to the options statement if the termination date on the statement is the same as the plan member's actual termination date.

If a plan member chooses to make a payment towards their service buyback using their severance pay payment, he must provide specific direction to the compensation advisor.

Updated Debts to the Crown Reported on the Termination/Retirement Debt Recovery (PWGSC-TPSGC 4242) form

Pay special attention to the new reporting requirements of debts to the Crown to be made from pension payments, if applicable.

If a recovery is required from a pension payment, compensation advisors must report all existing debts to the Crown upon termination of employment (before any recoveries). Once the account is finalized, the PO will report any debts recovered, and the final debt amount outstanding. Compensation advisors and POs must ensure the reporting of debt amounts is done properly to avoid a duplication of reporting and recovery.

If the client department, Crown corporation, agency or territorial government manages the debt themselves and will recover the debt through other means, there is no need to advise the Pension Centre of the debt. In these cases the compensation advisor must not report the debt amount on the Termination/Retirement Debt Recovery (PWGSC-TPSGC 4242) (accessible only on the Government of Canada network) form.

The Pension Centre will advise the employing organization when a debt has been recovered.

  • For employers using RPS, the organization will be notified that the debt was recovered via an interdepartmental settlement (IS) to the Finance and Administration Branch (FAB). It will be FAB's responsibility to notify the compensation advisor that a payment has been received. Compensation advisor contact information will be provided in the financial system for this purpose. The compensation advisor must then input a Cash receipt (accessible only on the Government of Canada network) transaction or inform the pay office to remove the debt from the pay system. If this last step does not occur, the recovery could be made twice in error
  • Employers not using RPS will be sent a cheque directly from the Pension Centre for the money recovered. Following this, the debt will be removed from the pay system

Should a compensation advisor subsequently recover the amount of the debt to the Crown reported on the Termination/Retirement Debt Recovery (PWGSC-TPSGC 4242) form, or a part thereof, the Pension Centre must be notified immediately to avoid duplication of recoveries.

Termination and Contributions Advice (PWGSC-TPSGC 2321)

With the implementation of the new Data Capture Tool (DCT), on termination of employment, Crown corporations, departments, agencies and territorial governments not using the RPS will no longer be required to complete a "Termination and Contributions Advice" (PWGSC-TPSGC 2321), as the required information will be fed through the DCT.

Notification of Death in Service (PWGSC-TPSGC 2014)

When advised of a death in service, compensation advisors will immediately complete Part A of the revised Notification of Death In Service (PWGSC-TPSGC 2014) form and fax it to the Pension Centre. This form will serve to notify the Pension Centre that a death has occurred.

RPS users do not send a copy of the completed form to the PO. Upon notification of a death in service, the Pension Centre will verify the entitlement to a Supplementary Death Benefit payment. If a Supplementary Death Benefit payment must be made, the Pension Centre will determine if there is a possibility that Supplementary Death Benefit deficiencies may be outstanding and will contact the PO for completion of the form, if required.

For non-RPS users, both the compensation advisor and the PO section of the form must be completed before being sent to the Pension Centre.

Canadian Forces Superannuation Act (CFSA)/Royal Canadian Mounted Police Superannuation Act (RCMPSA) Report of Pensionable Service (PWGSC-TPSGC 2073)

When a new plan member indicates on his "Enrolment Information and Acknowledgement of Plan Membership" form (PWGSC-TPSGC 571) prior service with the CF or the RCMP, the Pension Centre will send a request to the CF or the RCMP for completion of a CFSA/RCMPSA Report Of Pensionable Service (PWGSC-TPSGC 2073) (accessible only on the Government of Canada network) form.

If a compensation advisor requires a completed (CFSA/RCMPSA Report Of Pensionable Service (PWGSC-TPSGC 2073) form and there is not one on the plan member's file, the compensation advisor should continue to forward the form to the CF or the RCMP for completion.

The CFSA/RCMPSA Report Of Pensionable Service (PWGSC-TPSGC 2073) form has been amended to instruct the CF and the RCMP to forward the completed form to both the Pension Centre and the compensation advisor, as both may require the information.

Pre-Retirement Transition Leave

A plan member wanting to apply for pre-retirement transition leave must attach proof of their earliest date of retirement with an unreduced pension to their pre-retirement leave application. The manager will require this date to determine whether the member meets the eligibility requirement of an unreduced pension at the start of the leave arrangement, or is within two years of becoming eligible for an unreduced pension, in order to approve. Plan members can obtain their earliest date of retirement with an unreduced pension date in the "Retirement or Departure" section available on the left-hand side menu bar within the Pension and Insurance Benefits Statement. The Pension Centre can also be contacted, if required.

All other pre-retirement leave processes do not change.

Forms Pension Reduction Waiver Request (PWGSC-TPSGC 2429) and Pension Reduction Waiver Request (PWGSC-TPSGC 2429-1) and Work Force Adjustment

Work Force Adjustment directives (WFAD) specify criteria that must be met for an employee to be eligible for a waiver of a pension penalty or reduction.

Compensation advisors continue to be responsible to forward a completed Pension Reduction Waiver Request (PWGSC-TPSGC 2429) (accessible only on the Government of Canada network) form or Pension Reduction Waiver Request (PWGSC-TPSGC 2429-1) (accessible only on the Government of Canada network) form to the Pension Centre, when required.

These forms have been amended to gather certification that a plan member was at least age 55 at termination, has been employed in the public service for at least ten years, and has met the requirements for a waiver of the reduction, as detailed on the forms.

The Pension Centre will provide information to plan members on both regular pension entitlements and the impacts should a pension reduction waiver be approved.

Correctional Service Canada form Election to Continue to Pay Extra Contributions for All Additional Years of Non-Operational Service (PWGSC-TPSGC 2469)

Compensation advisors remain responsible for determining entitlement of a plan member to opt, when applicable, to continue paying the additional contributions in order to count service as deemed operational.

If a plan member requires clarification on the pension impacts of this decision, the member should be referred to the Pension Centre.

Service Standards

Compensation Advisors

Submit the SOS transaction as soon as possible.

Pay Office

Complete and fax the Notification of Death In Service (PWGSC-TPSGC 2014) form—Part B to the Pension Centre within 24 hours of receipt, when applicable.

Pension Centre

Telephone calls will be returned within 48 hours from receipt of the call (two business days). The Pension Centre will provide the plan member pension benefit entitlement information and estimates requests by phone, based on the information available.

Email inquiries: All email inquiries will be responded to within five business days from receipt of the inquiry.

ROC payments: The ROC payments will be issued within 30 days of receipt of all required documentation, or within 30 days of the date of termination, depending on whichever is later.

Transfer value (TV) payments: The TV payments will be issued within 45 days of receipt of all required documentation, or within 45 days of the date of termination, depending upon whichever is later.

Initial pension payment to annuitants: When the documentation required to pay the pension has been received prior to the termination date, or within 15 days following termination, the first pension cheque will be issued within 45 days of the termination date. When the essential retirement documents are received more than 15 days after the termination date, the first pension cheque will be issued within 30 days of receipt of the final required documents.

Initial payment to survivors: Initial payment to a surviving spouse will be issued within 30 days of receipt of the required documentation.

Supplementary Death Benefit payment for death-in-service: Payment will be issued within 72 hours (three working days) of receipt of all required documentation.

Information: Disclaimer

This information is provided to illustrate the new pension benefit entitlements and survivor pension entitlements processes. All other existing compensation processes remain unchanged unless mentioned in this document.

Roles and Responsibilities

April 11, 2011 Updated February 27, 2015

Pension Benefit Entitlements and Survivor Pension Entitlements
Activity Plan Members or Survivors/ Representatives Compensation Advisors Pension Centre Pay Offices
Obtaining information Obtain information from the Your Public Service Pension and Benefits Web portal and/or contact the Pension Centre. Plan members review the Pension Entitlement Information Packages available on the Web portal. Provide link to the Your Public Service Pension and Benefits Web portal address and provide contact information including a toll free telephone number, an email address, a facsimile number and a mailing address for inquiries related to pension benefit entitlements. (Your Public Service Pension and Benefits—Contact Us) For death in service, advise plan members' survivors or legal representatives to contact the Pension Centre and provide the (Your Public Service Pension and Benefits—Contact Us) information. Provide information on pension benefits or survivor pension entitlements. Support members with navigation through the Pension Entitlement Information Packages and estimate tools, and provide explanations, if necessary.  
Obtaining pension benefit estimates Plan members calculate and review pension benefit estimates using the Compensation Web Applications (page available on Government of Canada network only). Provide the Pension Centre contact information to plan members and their survivors or legal representatives. As requested, prepare and provide a pension benefit estimate to plan members and their survivors or legal representatives. Pension benefit estimates will be provided immediately based on readily available information.  
Termination of employment Plan members or their survivors or legal representatives obtain information from the Your Public Service Pension and Benefits Web portal, and/or contact the Pension Centre. Plan members provide notice of resignation or retirement, if applicable, to compensation advisor. Plan members review the Pension Entitlement Information Packages available on the Web portal. Terminate employment in the pay system. Provide Pension Centre contact information to plan members and their survivors or legal representatives. Advise plan members and their survivors or legal representatives of the complete pension termination process. Provide plan members with a termination package including pension benefit information, documentation, and required forms, if applicable. When advised of a death in service, contact the plan member's named beneficiary under the SDB plan and process the SDB payment. Contact the plan member's survivors or legal representatives to provide pension benefit information, documentation, and required forms.  
(the form 4242 Termination / Retirement Debt Recovery is only applicable when Debt to the Crown)        
Notification of debt to Crown   Notify the Pension Centre if debt to Crown amounts reported on the Termination/Retirement Debt Recovery in the event of termination of employment or retirement (PWGSC-TPSGC 4242) form, or part thereof, are recovered. Updated Notify employing organization if debt amounts are recovered. Update relevant pay system with any recoveries. Regional POs will update using a PAC 30.
Notification of a death in service   Terminate employment in the pay system. RPS users complete Part A of the "Notification of Death in Service" (PWGSC-TPSGC 2014), and fax to the Pension Centre. Non-RPS users complete Part A and B of the form and fax to the Pension Centre. For RPS users, verify entitlement to a SDB payment, determine possibility of SDB deficiencies, and send the "Notification of Death in Service" (PWGSC-TPSGC 2014) to the PO, if required. If required, complete Part B of the "Notification of Death in Service" (PWGSC-TPSGC 2014), and forward to the Pension Centre within 24 hours.
Completion of the "Pension Reduction Waiver Request" (PWGSC-TPSGC 2429) and "Pension Reduction Waiver Request" (PWGSC-TPSGC 2429-1) Plan members obtain information from the "Your Public Service Pension and Benefits" Web portal and/or contact the Pension Centre. Plan members review the Pension Entitlement Information Packages available on the Web portal. Complete and forward the "Pension Reduction Waiver Request" forms to the Pension Centre, if applicable. When requested, provide plan members with the pension impacts of a pension reduction waiver approval.  
Completion of the "Election to Continue to Pay Extra Contributions for All Additional Years of Non-Operational Service" (PWGSC-TPSGC 2469)   Determine eligibility to continue paying additional contributions. When requested, provide plan members with the pension impacts of completing this form.