Part III—Early PSPP Pension (i.e. an annual allowance)

If you retire before you reach age 60 (unless you are at least 55 years of age and have 30 or more years of pensionable service), you may choose an annual allowance.

An annual allowance is a permanently reduced pension payable to contributors who are at least 50 years of age with two (2) or more years of pensionable service and who retire before age 60, the normal retirement age for the PSPP. 

Your early PSPP pension is reduced to take into account the fact that you are likely to receive this pension for a longer period than if you had waited to receive an unreduced pension at
age 60 (or from age 55 if you have 30 or more years of pensionable service).

Table 3 —Early PSPP pension before age 65

At age 65 (or earlier if a disability pension is paid by the CPP/QPP), your early PSPP pension (i.e. annual allowance) is reduced to account for the co-ordination with the CPP/QPP the same way the other PSPP retirement pensions would be. Your early PSPP pension (i.e. annual allowance) at age 65 is reduced by applying the following formula:

Table 4 — Early PSPP pension at age 65

Part IV—Early or Delayed CPP/QPP Retirement Pension

Under the terms of the CPP/QPP, you may choose to either:

• claim your CPP/QPP pension as early as age 60; or
• delay drawing your CPP/QPP pension until you reach age 70.

Normally, your CPP/QPP retirement pension starts the month after your 65th birthday. This pension is smaller if you begin receiving it before age 65 and larger if you take it after.

(For more information on CPP/QPP retirement benefits, please visit the CPP/QPP Web sites or contact the CPP or QPP at the toll-free telephone numbers provided at the end of this document.)

Because the PSPP is a separate plan, your PSPP pension will not be reduced until you have reached age 65, even if you choose to claim an early CPP/QPP retirement pension between age 60 and 65, except in the case of disability. Please note also that, if you choose to delay the receipt of your CPP/QPP retirement pension after age 65, your PSPP pension will still be reduced at age 65.

Conclusion

The information provided in this document has focussed on the impact of the co-ordination between the PSPP and the CPP/QPP. During your career as a federal public service employee, you may have to make decisions that will affect your eventual benefits under the PSPP. We hope that, by carefully studying this information, you will be able to better understand this provision in your plan and make sound decisions. 

Although this information applies to the great majority of employees, it isn't possible to cover every circumstance. If you feel that your situation has not been covered, or if you wish to confirm whether a particular provision does or does not apply to you, you should contact the following officials:

a)  if you are a current contributor, you may contact your departmental compensation office or the Public Works and Government Services Canada (PWGSC) Call Centre at the toll‑free telephone number provided in the List of Useful Links and Telephone Numbers; or

b)  if you are a retired plan member or the survivor of a PSPP member, please contact the PWGSC Call Centre.

QUESTIONS AND ANSWERS

1. What have been the contribution rates to the PSPP and to the CPP/QPP since 2000?

   Your contribution rates over the last five years are shown in the following table:

   Employee Contribution Rates for the Years 2000–06

   Year	PSPP Contributions on Salary Above the YMPE	PSPP Contributions on Salary Below the YMPE	CPP/QPP Contributions on Earnings up to the YMPE
   2000	7.5%	4%	3.9%
   2001	7.5%	4%	4.3%
   2002	7.5%	4%	4.7%
   2003	7.5%	4%	4.95%
   2004	7.5%	4%	4.95%
   2005	7.5%	4%	4.95%
   2006	7.8%	4.3%	4.95%

2. Where can I obtain more information on my PSPP benefits?

   PSPP benefits

   If you are a current contributor, information on your future PSPP pension is provided to you every year through Your Pension and Benefits Statement. If you are a pensioner, please contact the PWGSC Call Centre mentioned in the attached list. You may also estimate your future PSPP pension by using the Pension Benefits Calculator. (Additional information may be found by visiting the Compensation Sector Web site provided in the List of Useful Links and Telephone Numbers).

3. Where can I obtain more information on my CPP/QPP contributions?

   CPP/QPP benefits

   Information on your CPP/QPP contributions and estimated benefits are provided to you through your most recent CPP Statement of Contributions or QPP Participation Statement. (Additional information on these statements can be found by visiting the CPP or the QPP Web sites or by calling the toll-free number provided in the List of Useful Links and Telephone Numbers.)

List of Useful Links and Telephone Numbers 

Acts and Regulations

The Department of Justice Canada provides legislative material, notably the Public Service Superannuation Act and its regulations (the Public Service Superannuation Regulations), the Supplementary Retirement Benefits Act, the Special Retirement Arrangements Act and its regulations (the Retirement Compensation Arrangement Regulations, No. 1 and No. 2), and the Pension Benefits Division Act and its regulations (the Pension Benefits Division Regulations).

http://canada.justice.gc.ca

Group Benefit Plans

This site provides information on the Public Service Health Care Plan, Public Service Dental Care Plan, Disability Insurance Plan, and Public Service Management Insurance Plan. (Follow the Information for Employees window to Pensions and Benefits.)

http://publiservice.tbs-sct.gc.ca

Canada Pension Plan and Old Age Security

The links to the Canada Pension Plan and Old Age Security are found on the main page of the Social Development Canada Web site.

http://www.sdc.gc.ca/en/home.shtml

Compensation Sector Web Site

Pension Benefits Calculator and Service Buyback Estimator
This Web site makes tools available to Public Service Plan members that enable them to estimate the value of their future pension benefits (Pension Benefits Calculator) and the cost of buying back prior pensionable service (Service Buyback Estimator).

http://www.pwgsc.gc.ca/compensation/

Quebec Pension Plan

This site provides information on the Quebec Pension Plan and the benefits available to plan contributors. (Search the Quebec Pension Plan Web site for specific information on this plan.)

http://www.rrq.gouv.qc.ca/en/

Your Pension Plan

This is a brochure published by the Treasury Board of Canada Secretariat that describes the major terms of your pension plan, which is governed by the Public Service Superannuation Act (PSSA). (See under Employees/Pensions and Benefits/Pensions/Public Service Pension Plan.)

http://publiservice.tbs-sct.gc.ca 

PWGSC Call Centre (toll-free)

Canada Pension Plan (toll-free)

1 800 277-9914           for service in English
1 800 277-9915           for service in French
1 800 255-4786           if you use a TTY device

Quebec Pension Plan (toll-free)

1 800 463-5185
1 800 603-3540           if you use a TTY device

¹ The AMPE is the average of the YMPE (Year's Maximum Pensionable Earnings) for the year of your retirement and the four preceding years. The YMPE and the AMPE are determined in accordance with the provisions of the CPP/QPP. If you ceased to be employed in the Public Service in 2006, the AMPE will be $40,540.