Pension Transfer
When to ask for a pension transfer: A request for a pension transfer under a Pension Transfer Agreement (PTA) between an employer and the
Government of Canada may be made only within the timelines set out in the existing PTA.
Who has a Pension Transfer Agreement (PTA): A pension transfer agreement is an agreement that the federal government may enter into with
employers who meet certain criteria established by the Public Service Superannuation Act .
- Employers who have a PTA: Consult appendix B of Your Pension Plan booklet to see
the current list of employers with whom the Government of Canada has already entered into a PTA.
- Employers who don't have a PTA: If your new or prospective employer has not already entered into a PTA with the Government of Canada, but is
interested in doing so, then that employer may submit a request to the Pensions and Benefits Sector of the Treasury Board Secretariat. Please note that this process
may take some time and that you have only one year following your departure from the Public Service to choose a Transfer Value.
What to transfer: The purpose of a PTA is to transfer the actuarial value (in current dollars) of your accrued pension credits and related pensionable
service from one pension plan to another. The formula for calculating this amount is described in each individual PTA.
- Pension amounts payable under the Retirement Compensation Arrangement (RCA): When you opt for a pension transfer, you approve the transfer of not
only your accrued pension credits under the Public Service Pension Plan (PSPP), but also those amounts payable under the RCA, if applicable. Most employers outside of
the Public Service do not have an RCA. As such, if a transfer of the RCA portion to an outside RCA is not possible, then that portion is paid directly to you and is
taxed at source.
Comparing pension plans: You should examine the provisions and benefits of your new employer’s plan and compare them to those of the PSPP to
determine if it is in your best interest to transfer your pension credits, rather than opting for a deferred annuity, for example. Factors, such as health and dental care,
should be carefully examined. The PSPP is a defined benefit plan, which in this case, means that your pension benefits are set and paid based on the provisions of the
Public Service Superannuation Act. For a general description of your pension plan, see Getting to Know your
Pension Plan.
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