Two or more years of pensionable service

Supplementary Death Benefit participant at regular rate

If you are entitled to receive an immediate pension benefit (immediate annuity or immediate annual allowance payable within 30 days of termination) your Supplementary Death Benefit coverage automatically continues at the same contribution rate as an active plan member and will be deducted from your monthly pension.

Effective April 1st or October 1st, following your 65th birthday, whichever comes first, you will be credited with a $10,000 paid up coverage and your contributions will be reduced accordingly. In addition, your coverage and contributions will be reduced effective April 1st or October 1st following your 66th birthday, whichever comes first, by 10% yearly until age 75, at which time you will retain the paid up benefit of $10,000.

At any time after 30 days following your termination, you may cancel your coverage or reduce it to $10,000 by completing the Election to reduce benefit to $10,000 (PWGSC-TPSGC 2041-1) form.

If you are eligible to continue your Supplementary Death Benefit coverage at the regular rate after your termination of employment, please refer to the Supplementary Death Benefit estimates statement received from the Pension Centre or contact them for your coverage and contribution information.

Supplementary Death Benefit participant at commercial rate

If you opt for a pension benefit payable in the future (deferred annuity or deferred annual allowance) or a transfer value, you may elect to continue your coverage under the Supplementary Death Benefit plan at the commercial rate. Contributions are paid annually in advance to the Pension Centre. When your deferred annuity or annual allowance becomes payable, you may choose to have your monthly deductions taken from your pension.

Commercial rates are higher than the regular contribution rate. Your estimated contribution rates are available on the Supplementary Death Benefits estimates statement received from the Pension Centre or by contacting them.

If you opt for a return of contributions and you have 2 years of continuous employment in the public service (without a break of more than 3 months) or you have been a Supplementary Death Benefit participant for at least 2 years including participation as a member of the Canadian Forces, you may choose to continue coverage at the commercial rate. If you are receiving a pension benefit under the Canadian Forces pension plan, you will be eligible to reinstate your Supplementary Death Benefit coverage under their plan.

If you are entitled to a lump sum payment, contributions are to be paid annually in advance to the Pension Centre.

To apply for continued coverage under the Supplementary Death Benefit plan, you must complete the form Election to continue as participant under the Supplementary Death Benefit plan (PWGSC-TPSGC 2017) and return it with your annual contributions to the Pension Centre within one year before or within 30 days after ceasing to be employed.

If you make a valid choice to continue participation in the Supplementary Death Benefit plan, your coverage and contributions will reduce by 10% per year effective April 1st or October 1st following your 66th birthday, whichever comes first. Your coverage will cease at age 75.

Consumer price index

Your pension benefits increase each January after you terminate employment to take into account increases in the consumer price index (CPI). The first increase payable the year after you terminate employment will be prorated to reflect the number of full months left in the year in which you terminated your employment. If there is no change in the CPI, or if it drops, your pension will not be adjusted that year.

If you are entitled to a deferred annuity when you terminate your employment, your pension, when it is payable, will be increased by the total accumulated percentage increases from your date of termination of employment.

Example: If an employee terminates employment on August 20, then he would be entitled to a pension indexing increase of 4/12 of the total adjustment for the following year.

When you stop receiving the bridge benefit, either at age 65 or when you become entitled to CPP or QPP disability benefits, your indexing will be recalculated based on your lifetime pension amount only.

Effects of re-employment on indexing benefits

If you become re-employed in the public service and again become a plan member, the payment of your pension, including indexing, will cease. When you cease to be employed again, your indexing benefit will be based on the amount of your basic pension at that time. Your termination date for determining the increased annual percentage will be the most recent termination date.

The new combination of pension benefits, that is, your new annuity plus the increase based on the later year of termination of employment, could be lower than the previous total entitlement. If you are thinking of taking a job where you will become plan member, carefully consider if it would affect your total pension benefit.

Quick guide

What pension benefit option should you choose? There are many things to consider in your decision including what group insurance benefits can continue. Eligibility to continue benefits is dependant on the pension benefit you choose to receive. Below is a reference guide which contains a more detailed explanation of all insurance benefits.

Acronyms

IA

Immediate annuity

AA

Annual allowance

DA

Deferred annuity

TV

Transfer value

ROC

Return of contributions

This table indicates which group insurance benefit plans can continue based on your chosen pension option.

X – indicates that benefits can continue

Public Service Health Care Plan

If you opt for a benefit payable immediately (immediate annuity or immediate annual allowance) you may continue your coverage by having contributions deducted from your monthly pension. To change your current level of coverage, you must submit a signed application form Public Service Health Care Plan—Pensioner application (TBS-SCT 006492) (PDF, 91.4KB).

If you opt for a pension benefit payable in the future (deferred annual allowance or deferred annuity) you or your survivors may be eligible to re-join the Public Service Health Care Plan at that time.

If you were not covered under this plan as an employee, you may still be eligible to join this plan once pension payments begin. We encourage you to contact the Pension Centre for confirmation of your eligibility. If you are eligible and your completed application is received within 60 days of the date you terminate your employment, coverage will take effect on the 1st day of the month following receipt of your form. If your completed application is received more than 60 days after the date you become eligible, coverage will only take effect on the 1st day of the 4th month following receipt of your form.

Should you choose a lump sum benefit payment (i.e. transfer value, return of contributions) you will not be eligible to maintain coverage under the Public Service Health Care Plan.

For Quebec residents, the employer's portion of insurance contributions is considered a taxable benefit and is subject to Quebec income tax.

For Quebec and Ontario residents, the plan member's premiums are subject to the provincial sales tax.

Further information on the Public Service Health Care Plan, the different levels of coverage and the current rates for pensioners, can be obtained by referring to Health care plan at a glance.

Pensioners' Dental Services Plan

If you opt for a benefit payable immediately, (immediate annuity or immediate annual allowance) you may be eligible to join the Pensioners' Dental Services Plan. If you were entitled to dental coverage as an employee, your dental coverage as a pensioner would be uninterrupted if the Pension Centre receives your Pensioners' Dental Services Plan Enrolment form within 60 days of your pension entitlement date. If you choose not to apply within the initial 60-day period, you still have the opportunity to join the Pensioners' Dental Services Plan at a later date.

If your Enrolment form is received later than 60 days from the effective date of your pension entitlement, your membership will begin on the first day of the second month following the date the Pension Centre receives your Enrolment Form. Coverage for all dental services begins on the same day as your membership begins.

If you opt for a benefit payable in the future (deferred annual allowance or deferred annuity), you or your survivors may be eligible to join the Pensioners' Dental Services Plan at that time.

Should you choose a lump sum benefit payment, you will not be eligible to join the Pensioners' Dental Services Plan.

Further information may be obtained from the Pensioners’ Dental Services Plan enrolment information and plan summary.

If you choose to apply for coverage, you can obtain the form "Pensioners' Dental Services Plan" (PWGSC-TPSGC 439-E) from the Pension Centre. Current contribution rates can be found on the Pension contribution rates for the 3 major public sector pension plans.

For Quebec residents, the employer's portion of insurance contributions is considered a taxable benefit and is subject to Quebec income tax.

For Quebec and Ontario residents, the plan member's premiums are subject to provincial sales tax.

Medavie Blue Cross (Atlantic or Quebec residents)

If you have coverage under this plan as an employee, monthly premiums for this plan may be deducted from your pension if you opt for a pension benefit payable immediately (immediate annuity or immediate annual allowance).

Before Medavie Blue Cross deductions can be taken from your pension, you must obtain a letter of authorization from Medavie Blue Cross. Atlantic residents may contact Medavie Blue Cross at 1‑800‑667‑4511 and Quebec residents at 1‑888‑261‑4033.

Deductions are taken one month in advance of the month in which coverage begins.

For Quebec residents, the employer's portion of insurance contributions is considered a taxable benefit and is subject to Quebec income tax. In addition, the plan member's premiums are subject to the provincial sales tax.

Survivor benefits

If you opt to receive a monthly pension benefit, now or in the future, your eligible survivor and children will be entitled to an allowance in the event of your death.

A survivor's allowance is payable to a legal spouse or to a common-law partner with whom you have lived in a relationship of a conjugal nature for at least one year, as long as that relationship began prior to your retirement from the public service and continued without interruption until your death. For children to be eligible for an allowance, they must be under age 18 or a full-time student between 18 and 25 years or age. To be eligible, the child must have been born before retirement.

If you marry after retirement, your survivor would not normally be entitled to an allowance. However, you may choose to provide your survivor with a benefit by taking a reduction in your own pension. You must apply for this coverage within one year from the date of your marriage or one year from the date your pension commences, whichever is later.

Here are some examples to illustrate:

• You retire on June 10, 2010 and get married on October 23, 2010. You were not in a common-law relationship before the marriage therefore your surviving partner is not automatically entitled to a benefit. You can, however, opt at a cost, to provide your spouse with a survivors benefit.
• You retire on June 10, 2010 and you start living in a common-law relationship on September 27, 2010. Your surviving partner would not be entitled to a benefit.
• You have been living in a common-law relationship since February 7, 2009 and you retire on June 10, 2010. On October 23, 2010 you marry. In this situation, your spouse may be entitled to a survivor benefit.
• You have been living in a common-law relationship since December 14, 2009 and you retire on June 10, 2010. On October 23, 2010 you marry. If your death is on or before December 14, 2010, (one year from the start of your common-law relationship), your surviving spouse would not be entitled to a benefit.

Should you choose a lump sum benefit payment, your survivors will not be entitled to survivor benefits.

Additional information on survivor benefits may be obtained from the When death occurs – Retired members – pension Web page.

Canada pension plan or Quebec pension plan

If you opt for a monthly pension benefit under the public service pension plan, your pension will consist of 2 parts:

1. a lifetime pension, which is payable from the date you terminate employment until your death, and
2. a temporary bridge benefit payable from the date you terminate employment until the first of the month following your 65th birthday or earlier if you become entitled to Canada or Quebec pension plan (CPP or QPP) disability benefits. Receipt of CPP or QPP early retirement benefits (ages 60 to 65) has no impact on this temporary bridge

The bridge benefit is only payable for a specified period because the public service pension formula has been adjusted to reflect the requirement to participate under CPP or QPP.

It is important that you complete a Pension information release (PWGSC-TPSGC 2265) (This site is only accessible to federal government employees, and only to federal departments and agencies) form to confirm whether or not you are entitled to a disability benefit from the CPP or QPP prior to age 65. Until the Government of Canada pension centre receives the form indicating that you are not entitled to disability benefits from the CPP or QPP, the Pension Centre will assume that you are entitled to such benefits and the bridge benefit amount will not be paid to you from your date of entitlement or date of termination, whichever is later.

For information on the CPP or QPP , please contact their office. Information about the CPP may be obtained from the Service Canada website.

Information about the QPP may be obtained from the Québec pension plan website.

Old age security pension

This Government of Canada monthly benefit is payable to all persons aged 65 or more who satisfy certain conditions of residency.

Information about the old age security may be obtained from the Service Canada Old age security Web page.

Re-employment in the federal public service

If you are re-employed in the public service as a plan member before having made your pension benefit option, you cease to be entitled to exercise an option until you cease employment again.

If you are in receipt of an ongoing pension benefit and choose to become re-employed in the public service as a plan member, your monthly pension, (including indexing if applicable) will cease. You cannot receive a pension under the public service pension plan and accumulate pensionable public service simultaneously. If however, you are re-employed in a position that does not require you to become a plan member of the public service pension plan, you can receive both your pension and the salary from your new position.

You should note that if you become re-employed as a plan member, your pension entitlement may be negatively affected in several ways. First, indexing would be calculated based on your most recent termination date and you would lose any annual cost-of-living increases (indexing) you may have accumulated. In addition, if you were receiving an annual allowance previously, your future pension benefit may be reduced, when you cease to be re-employed, to take into consideration the length of time you received the annual allowance.

To learn more, you may visit the Public service pension plan page of the Treasury Board of Canada Secretariat's website.

Potential service buyback

If you have any prior service that may be purchased in order to count it as pensionable under the Public service pension plan, keep in mind that this service must be bought back prior to ceasing your employment in the public service. Service buybacks increase pensionable service time, which may increase the value of your pension benefit or change your pension benefit options.

For additional information, refer to the Service buyback package.

Current service buyback

If you are currently paying for a service buyback from your salary, this monthly payment will continue from your immediate monthly pension benefit. Otherwise, your monthly payments should be sent directly to the Pension Centre until you become eligible to receive a pension or become re-employed as a plan member.

If you do not receive an immediate pension benefit, you may choose to delay your service buyback payment until your pension becomes payable. It is important to note that if you choose this method, interest of 4% per year is charged on your defaulted payments. This may result in a substantially higher monthly amount to be deducted from your pension when it becomes payable.

You may choose to pay the balance of your service buyback using termination payments payable by your employer. Please advise us if you wish to pursue this payment method, and we can provide you with an estimate of the balance owing on your service buyback. A copy of this information must then be provided to your compensation advisor for recovery action.

You can make a lump sum payment at any time to either pay off your balance owing, decrease your monthly payment amount or shorten your repayment period. You may also increase the amount of your monthly payment at any time to shorten your repayment period.

Leave without pay

If you are on leave without pay at date of termination, you have the option of not counting as pensionable service the leave without pay period which extends after the first 3 months. In order to exercise this option, you must complete an Election not to count leave without pay as pensionable service (PWGSC-TPSGC 2480) form and forward it to the Pension Centre prior to your official termination date. This choice will not be valid if you sign it after ceasing to be employed.

Deficiencies in public service pension plan and Supplementary Death Benefit contributions

If you have any public service pension plan and/or Supplementary Death Benefit contributions owing due to a period of leave without pay or for any other reason, these must be paid. If you choose not to count your leave without pay in excess of the first 3 months, you are required to pay pension deficiencies for the first 3 months and Supplementary Death Benefit contribution for the full period. You would have the following repayment options:

• pay the full amount from termination payments (see Note below)
• pay the full amount by personal cheque payable to the Receiver General for Canada
• pay the public service pension plan amount through a RRSP transfer (Supplementary Death Benefit contributions as well as any deficiencies in Retirement Compensation Arrangement contributions cannot be paid by RRSP transfer)
• pay the full amount through deductions from your monthly pension cheque (if applicable)

Debts due to the crown

If your employer informs the Pension Centre that you owe a debt to the Crown, such as overpaid salaries and allowances, these amounts will be recovered from your pension benefit. You will be advised of such recovery in writing.

Direct deposit

As part of the Government of Canada's efforts to reduce paper consumption, the Pension Centre issues its pension payments by direct deposit. At the time of making your pension option, you will be required to provide your banking information to start direct deposit. Your monthly pension cheque will then be deposited to your bank account on the third last banking day of the month.

Income tax

If you opt for an ongoing pension, income tax (federal and provincial) will be deducted at source based on your province of residence (for non-residents, based on the country of residence). If you wish to claim more than the basic personal amount, you must complete the Personal Tax Credits Return (TD1) form and the applicable provincial or territorial form, which can be found at TD1 forms.

Quebec residents should use the federal Personal Tax Credits Return (TD1 forms) and the provincial Source deductions return (TP-1015.3-V) form.

Government of Canada workplace charitable campaign

If you opt for an ongoing benefit payable immediately (immediate annuity or immediate annual allowance) you may have the remaining deductions pledged as an employee deducted from your monthly pension.

You may also choose to complete your pledge by making payments directly to the GCWCC. Arrangements can be made by contacting 613‑228‑6700. More information can be found on the Government of Canada Workplace Charitable Campaign website.

National Association of Federal Retirees

The National Association of Federal Retirees is a non-profit organization bringing together pensioners from the public service, the Canadian Forces and the Royal Canadian Mounted Police as well as spouses and surviving spouses of these pensioners. The association promotes measures beneficial to its members and ensures that pensioners are kept informed with regard to their rights. More information can be found on their website National Association of Federal Retirees or by calling 613‑745‑2559.

Forms - Acronyms

IA

Immediate annuity

AA

Annual allowance

DA

Deferred annuity

TV

Transfer value

ROC

Return of contributions

This table outlines the required and optional forms based on your chosen pension option.

X - Mandatory, O - Optional

This table outlines the required and optional forms based on your chosen pension option.

Note that the Pension Benefit Options Statement (PWGSC-TPSGC 2011E-PF) and the Pensioners' Dental Services Plan Form (PWGSC-TPSGC 439-E) must be obtained directly from the Pension Centre.

In order to have any of the deductions outlined in this package taken from a monthly pension benefit payable immediately, you must sign and return the form Deductions from annuity or annual allowance (PWGSC-TPSGC 1422) to the Pension Centre. In addition, if choosing to have coverage under an optional Group Insurance Benefit Plan, an application may or may not be required. Reference should be made to the applicable section of the Group Insurance Benefit Plans for confirmation.

The Pension Benefit Options Statement (PWGSC-TPSGC 2011E-PF) form must be completed and returned to the Pension Centre regardless of which benefit you choose.

Canada Revenue Agency Forms

To obtain hard copies of these forms which have been designed to meet the needs of visually impaired people, please contact the Canada Revenue Agency.

Complete the TD1 Personal Tax Credits Return Form as well as the corresponding provincial form if you wish to increase your tax credit beyond the basic personal amount.

• TD1 Personal Tax Credits Return
• TD1-WS Worksheet for the Personal Tax Credits Return