Public service pension plan deductions

This kit provides information on the most common deductions that can be taken from your public service pension.

If you wish to have information on a deduction that is not listed in this kit, please contact the Government of Canada pension centre.

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Code 009: Quebec income tax

For residents of Quebec, this deduction is imposed as per the total exemptions indicated on the form TP1015.3 and as per the Quebec income tax tables as provided by Revenu Québec.

If you wish to increase or change the amount of Quebec income tax being deducted from your pension, you may do so by:

For further details regarding your Quebec income tax deduction, you may contact the Government of Canada pension centre or visit the Revenu Québec website.

Code 010: Quebec income tax - additional

This deduction will appear on your payment statement if you have requested the Pension Centre to deduct an additional amount of Quebec income tax (see code 009).

Code 018: Public Service Health Care Plan

The Public Service Health Care Plan (PSHCP) reimburses participants for expenses incurred for a wide variety of health-related products and services, and is administered by Canada Life.

To apply for or to amend your coverage, the PSHCP Pensioner application form (TBS-006492) (PDF, 91KB) must be completed. Contact the Government of Canada pension centre to obtain a copy of the form or visit the Public Service Health Care Plan website for more information.

If you do not want coverage at the time of retirement but decide at a later date that you would like to have coverage, you may do so by contacting the Government of Canada pension centre.

Note

  • The employer’s share of insurance contributions is considered a taxable benefit and is subject to Quebec income tax.
  • Your share of the deduction amount is subject to provincial sales tax in Quebec and Ontario. Refer to deduction code 045 and 046.

Code 019: Public Service Health Care Plan arrears

This deduction will appear on your payment statement when the Pension Centre has to take a deduction that was either missed in the past or where coverage is effective retroactively.

Code 020: Pensioners' Dental Services Plan

The Pensioners' Dental Services Plan (PDSP) is a voluntary, contributory dental services plan that provides dental services coverage for you and your eligible dependants.

It provides coverage for specific services and supplies that are not covered under your provincial health or dental care plan. The plan covers only reasonable and customary dental treatment that is necessary to prevent or correct dental disease or defect, provided the treatment is consistent with generally accepted dental practices. For further information on the PDSP, please contact the Government of Canada pension centre or consult the Pensioners' Dental Services Plan member booklet.

Note

  • The employer’s share of insurance contributions is considered a taxable benefit and is subject to Quebec income tax.
  • Your share of the deduction amount is subject to provincial sales tax in Quebec and Ontario. Refer to deduction code 045 and 046.

Code 021- Pensioners' Dental Services Plan arrears

This deduction will appear on your payment statement when the Pension Centre has to take a deduction that was either missed in the past or where coverage is effective retroactively.

Code 038: Québec Blue Cross

The Québec Blue Cross personal health insurance plan gives you access to comprehensive health coverage to meet your particular needs.

As a member of the public service pension plan, you may have Québec Blue Cross coverage premiums deducted directly from your pension. For activation of these deductions, a letter of authorization from Québec Blue Cross is required.

You may write to the Government of Canada pension centre at any time if you wish to amend or cancel your Québec Blue Cross coverage.

For further information and details on Québec Blue Cross premiums and benefits, please visit the Québec Blue Cross website.

Note

  • The employer’s share of insurance contributions is considered a taxable benefit and is subject to Quebec income tax.
  • Your share of the deduction amount is subject to provincial sales tax. Refer to deduction code 045.

Code 138: Québec Blue Cross arrears

This deduction will appear on your payment statement when the Pension Centre has to take a premium that was either missed in the past or where coverage is effective retroactively.

Code 039: Atlantic Blue Cross

The Atlantic Blue Cross Care Options or Options Plus personal health plan gives you access to comprehensive health coverage to meet your particular needs.

As a member of the public service pension plan, you may have Atlantic Blue Cross coverage premiums deducted directly from your pension.

You may write to the Government of Canada pension centre at any time if you wish to amend or cancel your Atlantic Blue Cross coverage.

For enrolment or further information on Atlantic Blue Cross premiums and benefits, please visit the Medavie Blue Cross website.

Code 139: Atlantic Blue Cross arrears

This deduction will appear on your payment statement when the Pension Centre has to take a premium that was either missed in the past or where coverage is effective retroactively.

Code 045: Quebec sales tax

As a resident of the province of Quebec, provincial sales tax applies to your insurance premiums if you are a member of the Public Service Health Care Plan, Québec Blue Cross, the Public Service Supplementary Death Benefit Plan or the Pensioners' Dental Services Plan.

Your Quebec sales tax deduction will automatically be adjusted when there is any change to your premiums as a member of any of the above mentioned insurance plans.

For further details regarding your Quebec provincial sales tax deduction, please visit the Revenu Québec website or contact the Government of Canada pension centre.

Code 046: Ontario sales tax

As a resident of the province of Ontario, provincial sales tax applies to your insurance premiums if you are a member of the Public Service Health Care Plan, the Public Service Supplementary Death Benefit Plan or the Pensioners' Dental Services Plan.

Your Ontario sales tax deduction will automatically be adjusted when there is any change to your premiums as a member of any of the above mentioned insurance plans.

For further details regarding your Ontario provincial sales tax deduction, please visit the Ontario Ministry of Finance website or contact the Government of Canada pension centre.

Code 047: National Association of Federal Retirees

The National Association of Federal Retirees (NAFR), is recognized by the Government of Canada as the major representative of pensioners from the public service, the Canadian Forces, the Royal Canadian Mounted Police, and of federally appointed judges, as well as spouses and surviving spouses of these pensioners.

Membership dues for the NAFR can be deducted directly from your pension. The Pension Centre receives authorization for these deductions directly from the NAFR.

Should you wish to cancel your membership or request a refund, you must contact the National Association of Federal Retirees directly.

For further details, please visit the National Association of Federal Retirees website.

Code 055: Government of Canada Workplace Charitable Campaign - United Way

Government of Canada Workplace Charitable Campaign (GCWCC) - United Way contributions can be deducted from your pension payment. To enroll, you must complete and forward a gift form to the GCWCC - United Way. The gift form is normally mailed to you during the annual September to November campaign period. You may amend or cancel your GCWCC - United Way contributions by writing to the Government of Canada pension centre.

For further details, please visit the Government of Canada Workplace Charitable Campaign website.

Note

As your donation will be shown on your T4A, a tax receipt will not be issued.

Code 061: Post - Retirement life insurance plan

The Post - Retirement life insurance plan (PRLIP) forms part of the Public Service Management Insurance Plan (PSMIP). It provides life insurance for employees in the executive (EX) category who retire with an immediate continuing pension benefit under the public service pension plan, on or after January 1, 1989.

For further details regarding your PRLIP, please refer to the Public Service Management Insurance Plan executive plan booklet or contact the Government of Canada pension centre.

Code 064: Debt due to the crown

This deduction represents a repayment of a Debt due to the crown. A Debt due to the crown is any overpaid salaries, expenses or money owing to the Government that had not been paid upon your retirement.

For further details regarding this deduction, please refer to the letter of explanation received from the Government of Canada pension centre.

Code 085: Pension arrears and deficiencies

This deduction represents a recovery of pension contributions owing upon your retirement including contributions owing for a period of leave without pay or service buyback payments for the purchase of prior service.

For details regarding this deduction, please refer to the letter of explanation received from the Government of Canada pension centre. If this deduction is for a service buyback, you may also refer to your service buyback notice (PSPC-SPAC 2097).

Code 087: Federal income tax

This deduction is taken in accordance with the tax table applicable in the province or territory in which you are required to pay tax.

The amount of income tax deducted is based on the TD1 (Personal Tax Credits Return) form which you would have forwarded to the Pension Centre along with all other necessary retirement documents prior to your date of termination. A new or amended TD1 form can be submitted to the Government of Canada pension centre at any time.

If you end up having to pay tax every year when you file your income tax, you may be able to reduce your net tax owing by increasing the amount of tax deducted from your monthly pension payment. To do so, write or call the Government of Canada pension centre or send them a completed TD1 form.

For further details regarding your Federal income tax deduction, you may contact the Government of Canada pension centre or Canada Revenue Agency.

If you live in Quebec, please refer to deduction code 009, Quebec income tax.

Code 088: Supplementary Death Benefit contributions

This deduction represents the monthly amount payable for your contributions under the Supplementary Death Benefit (SDB). The SDB is similar to a decreasing term life insurance protection. After your death, a one-time, tax free, lump sum is paid to your designated beneficiaries or your estate if you have not designated beneficiaries under this Plan.

If you wish to reduce or cancel your coverage under the SDB plan, you may do so by notifying the Government of Canada pension centre in writing at any time. Please note that once your SDB has been reduced or cancelled, it cannot be reinstated.

For further details regarding your SDB deduction, please contact the Government of Canada pension centre.

Note

The deduction amount is subject to provincial sales tax in Quebec and Ontario. Refer to deduction code 045 and 046.

Code 089: Supplementary death benefit contributions arrears

This deduction will appear on your pension statement when you owe contributions to the SDB plan for a period of leave without pay or if contributions were missed when you were employed.

Recovery of pension overpayment

This deduction represents the amount you are repaying to cover an overpayment of your pension.

For details regarding this deduction, please refer to the letter of explanation received from the Government of Canada pension centre.

Canada Revenue Agency income tax arrears

The Canada Revenue Agency (CRA) can instruct the Pension Centre to collect income tax and, goods and services tax (GST) arrears from a retired member's pension benefit.

For details regarding this deduction, please refer to the letter of explanation received from the Government of Canada pension centre. You can also contact the Canada Revenue Agency for more information.

Family maintenance

The Garnishment, Attachment and Pension Diversion Act (GAPDA) allows for an amount to be deducted from your pension for the support of a spouse, former spouse, child or other dependant if a financial support order has been issued by a court in Canada. You will be notified and have an opportunity to respond if an application for diversion is received.

For details regarding this deduction, please refer to the letter of explanation received from the Government of Canada pension centre. You may also contact the department responsible for family maintenance in your province for more information.

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