Canada Pension Plan / Québec Pension (CPP/QPP) Plan FAQ

1. What effect does my entitlement to Canada Pension Plan / Quebec Pension Plan (CPP/QPP) benefits have on my Public Service Superannuation Pension?
2. Do you notify Canada Pension Plan / Quebec Pension Plan (CPP/QPP) to start sending me my cheques at age 65?
3. My pension was reduced more than my friend's pension when we started receiving Canada Pension Plan / Quebec Pension Plan (CPP/QPP). Isn't the reduction the same for everyone?
4. My spouse is now receiving Canada Pension Plan / Quebec Pension Plan (CPP/QPP). Does this affect my Public Service Superannuation Pension too?
5. The reduction to my Superannuation pension is greater than my Canada Pension Plan / Quebec Pension Plan (CPP/QPP) benefit. Why?
6. I never contributed to the Canada Pension Plan / Quebec Pension Plan (CPP/QPP) yet my pension was still reduced. Why?

1. What effect does my entitlement to Canada Pension Plan / Quebec Pension Plan (CPP/QPP) benefits have on my Public Service Superannuation Pension?

Your pension will be reduced either at age 65 or when you begin receiving a Canada Pension Plan / Quebec Pension Plan (CPP/QPP) disability pension. This reduction reflects the fact that the contributions to the public service plan and the Canada Pension Plan / Quebec Pension Plan (CPP/QPP) are integrated - you contributed less to the public service plan on the portion of your salary up to the Canada Pension Plan / Quebec Pension Plan (CPP/QPP) maximum. The Annuitant Booklet has more details on this subject.

The Treasury Board of Canada Secretariat also has a detailed explanation of the coordination of the Public Service Pension Plan with the CPP/QPP.

2. Do you notify Canada Pension Plan / Quebec Pension Plan (CPP/QPP) to start sending me my cheques at age 65?

No. You must apply under the Canada Pension Plan / Quebec Pension Plan (CPP/QPP) program when you wish to receive Canada Pension Plan / Quebec Pension Plan (CPP/QPP) benefits.

3. My pension was reduced more than my friend's pension when we started receiving Canada Pension Plan / Quebec Pension Plan (CPP/QPP). Isn't the reduction the same for everyone?

The reduction amount can vary from case to case depending upon the number of years of service after 1965, the year of retirement and the pensioner's average salary. The reduction formula is:

Years of service after 1965   X   AMPE *   X   .007

* AMPE is the 5-year average of the Yearly Maximum Pensionable Earnings under the Canada Pension Plan / Quebec Pension Plan (CPP/QPP) at retirement; the pensioner's actual average salary is used if lower than the AMPE.

The Annuitant Booklet has more details on this subject.

4. My spouse is now receiving Canada Pension Plan / Quebec Pension Plan (CPP/QPP). Does this affect my Public Service Superannuation Pension too?

No. Your pension is not affected by your spouse becoming entitled to Canada Pension Plan / Quebec Pension Plan (CPP/QPP) benefits, nor is a survivor allowance affected by entitlement to Canada Pension Plan / Quebec Pension Plan (CPP/QPP) benefits.

5. The reduction to my Superannuation pension is greater than my Canada Pension Plan / Quebec Pension Plan (CPP/QPP) benefit. Why?

There are several possible reasons why the reduction to your Superannuation pension could be greater than your Canada Pension Plan / Quebec Pension Plan (CPP/QPP) benefit:

• if you opted for early reduced Canada Pension Plan / Quebec Pension Plan (CPP/QPP)P benefits (the reduction to your public service pension is not adjusted to reflect the lower Canada Pension Plan / Quebec Pension Plan (CPP/QPP) entitlement; the full reduction applies, but not until age 65)
• if you had a period of leave without pay (you would have deemed earnings for purposes of the Public Service Superannuation Act, but no earnings for Canada Pension Plan / Quebec Pension Plan (CPP/QPP))
• if you retire early and have more than the maximum number of years without earnings under Canada Pension Plan / Quebec Pension Plan (CPP/QPP)

If you were employed prior to the introduction of the Canada Pension Plan / Quebec Pension Plan (CPP/QPP) on January 1, 1966 and you retired with an entitlement to an immediate annuity, you may qualify for an adjustment to your pension if the amount of the Canada Pension Plan / Quebec Pension Plan (CPP/QPP) benefit is less than the amount of the reduction to your pension.

6. I never contributed to the Canada Pension Plan / Quebec Pension Plan (CPP/QPP) yet my pension was still reduced. Why?

Even though you may not have contributed to the Canada Pension Plan / Quebec Pension Plan (CPP/QPP) during all or a part of your public service employment, the reduction is based on all service since 1966. The reduction to your pension is based on the fact that you contributed less to the public service plan on the portion of your salary up to the Canada Pension Plan / Quebec Pension Plan (CPP/QPP) yearly maximum. The Annuitant Booklet has more details on this subject.