Legislation
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- The Public Service Superannuation Act (PSSA) governs the
pension plan for employees of the Public Service of
Canada
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Financing
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- Benefits funded by contributions of the employer (Government of
Canada) and employees; the employer contributes more
than 60% of cost of future benefits
- Contributions invested in the financial markets; Web site: http://www.investpsp.ca
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Operations
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- Minister responsible for the plan: President of the
Treasury Board
- Administrator of the plan: Minister of Public Works and Government
Services Canada
- Publications: the booklet Your Pension Plan describes the
main provisions of the plan
- A Report on the Administration of the Public Service Superannuation
Act is published each year and is posted on the following Web site:
Internet: http://www.tbs-sct.gc.ca/hr-rh/bp-rasp/index_e.asp
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Membership/
Contributions
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- Employees appointed on an indeterminate basis (minimum 12 hours
per week) or for terms of more than six months start
participating in the plan from the beginning of their employment;
term employees (six months or less) begin after
completing six months of continuous employment
- As of January 1, 2006, employees contribute at a reduced rate (4.3%) on the part of the
salary up to the maximum covered by the Canada Pension
Plan (CPP) or Quebec Pension Plan (QPP) and at a rate of 7.8% on the
part of the salary above the maximum covered by CPP/QPP
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Benefits
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- Defined benefit plan; both contributions and benefits are integrated
with CPP/QPP. Prior to age 65, the pensions are calculated
as follows: 2% X number of years of pensionable
service (maximum of 35) X average salary for
5 consecutive years of highest paid service. At age 65 or in
case of disability, the Public Service pension is reduced to
take into account the CPP/QPP pension
- Pensions fully indexed annually to take into account increases in
the cost of living since termination date
- Return of contributions: payable to plan members
who leave the Public Service with less than
two years of pensionable service
- Immediate annuity: (unreduced pension) payable at age 60 with at least
two years of pensionable service or at age 55
with 30 years of pensionable service or at any age if
retirement is due to permanent disability
- Deferred annuity: payable at age 60
- Annual allowance (reduced pension): payable as
early as age 50
- Survivor benefit: 1% X number of
years of pensionable service X average salary of plan
member; children's allowance is equal to one fifth of the
survivor benefit (maximum of four fifths)
- Supplementary Death Benefit (term life insurance)
equal to twice the annual salary of the plan member; coverage
decreases by 10% each year starting at age 66 to a minimum of
$10,000 by age 75; this minimum coverage is free beginning at
age 65
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Portability
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- Transfer Value (termination of employment before age 50): lump
sum value representing the present value of deferred
pension; it must be transferred to another registered pension plan or
to a locked-in retirement savings vehicle
- Plan members can add eligible prior service in order to increase
their pension credits by "buying it back" or by
transferring pension credits under another plan through a pension
transfer agreement; a list of pension transfer agreements is
posted on the following Web site:
http://www.tbs-sct.gc.ca/hr-rh/bp-rasp/index_e.asp
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