How Your Pension Plan Works

(Background music: Welcome page with a logo of the Government of Canada Pension Centre. On the wall, behind the narrator, is written “Welcome/Bienvenue—Proudly serving/Fiers de servir,” as well as the word CANADA and three coats of arms.)

At the Government of Canada Pension Centre, we are here to help.

My name is Ben, and our goal here today is to help you understand your pension plan and make sense of what can feel like complex information.

(Background music continues. The narrator sits down in an armchair, at an angle.)

The Public Service Pension Plan is what's called a defined benefit pension plan.

I know you're probably thinking, whoa, backup.

So, in a nutshell, it means at retirement you'll be able to depend on a predetermined lifetime pension amount.

Also, that you don't have to worry as much about the investment return of the pension plan.

Your pension will be paid on a monthly basis for the rest of your life.

That's pretty amazing in today's economy.

(The narrator is sitting, facing the camera.)

Your lifetime pension is based on a formula that considers your average salary and the years of service you contributed into the plan. And in the event of your death, you're eligible survivors would receive a monthly pension.

(When the narrator says “… that considers your average salary …,” a grey text box with white letters appears on the top-right corner of the screen, with the words AVERAGE SALARY and YEARS OF SERVICE. The text box disappears upward.)

How does all this work?

Well, all eligible employees must become members of the plan.

Contributions are shared between plan members and your employer, the Government of Canada. Like many other plans, the Public Service Pension Plan is coordinated with the Canada Pension Plan and the Quebec Pension Plan, commonly known as CPP and QPP.

(When narrator says “… the public service pension plan is coordinated with …,” the words CANADA PENSION PLAN and QUEBEC PENSION PLAN appear in a text box, on the top-right corner of the screen. When the narrator says “CPP and QPP,” the acronyms CPP/QPP appear in the same box. The text box disappears by the right side of the screen.)

Without going into too much detail, this basically means that when you retire, your pension could have two parts.

First, you'll always receive your lifetime pension, which is payable from the date your pension begins until your death.

And second, you may receive a temporary bridge benefit, which is generally payable until age 65.

This is the age at which Canadians can start receiving regular CPP or QPP benefits.

(When the narrator says “First …,” the words LIFETIME PENSION appears in a text box, in the top-right corner. When the narrator says “Second …,” the words BRIDGE BENEFIT appears in the same box. The text box disappears by the right side of the screen.)

Did you know that your pension is also protected from inflation?

That's right. Every year, your pension will be adjusted to take into account the cost of living.

(The narrator is still sitting, but appears at an angle, at the right side of the screen.)

What counts as pensionable service under the plan? Easy.

It includes current public service, past service that you have purchased, and transfers of service from other pension plans.

(When the narrator says “Easy!,” the words CURRENT PUBLIC SERVICE, PAST PURCHASED SERVICE, TRANSFERS OF SERVICE appear in a text box. The text box disappears by the left side of the screen.)

35 years is the maximum pensionable service you can accumulate under the plan.

This includes pensionable service with other federal government pension plans like the Canadian Forces and the Royal Canadian Mounted Police.

You can still work more than 35 years. If you do, you will contribute to the pension plan at a reduced rate.

(When the narrator says “35 years,” the words 35 YEARS appear in a text box, at the bottom left of the screen. The text box disappears downward. When the narrator says “… the Canadian Forces,” the words CANADIAN ARMED FORCES appear in a text box, at the top left side. When the narrator says “Royal Canadian Mounted Police,” the words ROYAL CANADIAN MOUNTED POLICE appear in the same box. The text box disappears by the left side of the screen. The narrator stands up and takes a few steps forward.)

I hope this was helpful.

This was just a quick overview.

I'm sure you want to learn more about what your pension plan has to offer, right?

So feel free to view our other pension related videos we've created just for you.

Please visit our website at canada.ca/pension-benefits.

Thanks for watching!

(When the narrator says “Please visit our website …,” the address CANADA.CA/PENSION-BENEFITS appears at the bottom of the screen. The text disappears downward.)

(Text on screen: Contact information: Government of Canada Pension Centre – Mail Facility, PO BOX 8000, Matane QC G4W 4T6. Telephone: 1-800‑561‑7930. Email: pwgsc.pensioncentre-centredespensionstpsgc@pwgsc-tpsgc.gc.ca.)

(Text on screen: Check us out: facebook.com/PSPC.SPAC, instagram.com/pspc_spac, twitter.com/pspc_spac, youtube.com/PWGSCanada)

[Music stops]

(Public Services and Procurement Canada signature)

(Canada Wordmark)