Insurance and Other Deductions FAQ

1. Why are contributions for prior service I had elected to buy back still being deducted now that I am retired?
2. Can I cancel or reduce my Supplementary Death Benefit Plan (SDB) coverage?
3. How do I change the beneficiary of my Supplementary Death Benefit?
4. When I got married I designated my wife as beneficiary. We divorced recently. Will she still receive the Supplementary Death Benefit?
5. Do the provisions of a will, separation agreement or court order under family law have any effect on the entitlement to the Supplementary Death Benefit?
6. Whom should I contact for supplementary medical coverage?
7. What are the effects of my retirement on my participation in the Public Service Health Care Plan (PSHCP)?
8. What levels of hospital care coverage are available under the Public Service Health Care Plan (PSHCP)?
9. How do I change the level (I, II or III) or the type (single or family) of my Public Service Health Care Plan (PSHCP) coverage?
10. Can I continue dental coverage after I retire?
11. I am still employed in the Public Service. Will I be able to purchase Canada Savings Bonds through monthly deductions from my pension after I retire?
12. I am a retired Public Service employee, and I am not a participant in the Canada Savings Bonds Payroll Savings Program at the present time. Can I apply to start a Canada Savings Bonds deduction from my pension?
13. I am a retired Public Service employee, and I am a participant in the Canada Savings Bonds Payroll Savings Program. Can I continue to contribute to my Canada Savings Bonds plan(s) as a pensioner?
14. I am a retired Public Service employee, and I am a participant in the Canada Savings Bonds Payroll Savings Program. Can I open a new Canada Savings Bonds plan under the Payroll Savings Program?

1. Why are contributions for prior service I had elected to buy back still being deducted now that I am retired?

When you elected to purchase prior service, you indicated over what period you wished to make payments. If the payments were not completed when you ceased to be employed, the deductions will continue from your pension. You should note, however, that the full period of service has been included in your pension even though it is not yet fully paid.

2. Can I cancel or reduce my Supplementary Death Benefit Plan (SDB) coverage?

Yes, however most SDB participants are eligible after retirement to reduce coverage to $10,000. The cost for $10,000 of coverage is $1.50 per month prior to age 65 and after age 65 it is free for life. Therefore, eligible participants are strongly encouraged to consider this option rather than full cancellation of coverage. See the Supplementary Death Benefit section of the Annuitant Booklet for more details on this topic.

3. How do I change the beneficiary of my Supplementary Death Benefit?

You may change your beneficiary at any time by completing the designation form "Naming or Substitution of a Beneficiary" and mailing it to the Superannuation Sector. For more details on designating a beneficiary, see the Supplementary Death Benefit section of the Annuitant Booklet.

4. When I got married I designated my wife as beneficiary. We divorced recently. Will she still receive the Supplementary Death Benefit?

Your designation remains valid even if your relationship with the beneficiary changes. If you wish to change your beneficiary you must complete a new designation form. (see question 3 above).

5. Do the provisions of a will, separation agreement or court order under family law have any effect on the entitlement to the Supplementary Death Benefit?

If you made a proper beneficiary designation, payment will be made to that beneficiary in accordance with the Public Service Superannuation Act without regard to other documents such as an agreement, order or will. If the benefit is payable to your estate (e.g. if your beneficiary predeceases you or if you name your estate as beneficiary), the provisions of your will may determine how the benefit is to be distributed.

6. Whom should I contact for supplementary medical coverage?

The Public Service Health Care Plan (PSHCP) offers subsidized medical coverage for pensioners. If you are not currently enrolled in the Public Service Health Care Plan (PSHCP), you may wish to contact us to obtain a booklet on the plan or for information on enrollment.

7. What are the effects of my retirement on my participation in the Public Service Health Care Plan (PSHCP)?

If you are receiving an immediate pension at retirement and you were a PSHCP participant while employed, your coverage will continue without interruption unless we are advised by you or your personnel office that you do not wish to have coverage as a pensioner. If you were not a participant while employed or you cancel your coverage and reapply later, a three-month waiting period will apply.

8. What levels of hospital care coverage are available under the Public Service Health Care Plan (PSHCP)?

Coverage for semi-private or private hospital accommodation is available at three levels:

• Level I: up to $60 per day
• Level II: up to $100 per day
• Level III: up to $150 per day

The charges for hospital accommodation vary considerably from one region to another. When choosing a level of coverage, you should determine whether it will be adequate for your area.

9. How do I change the level (I, II or III) or the type (single or family) of my Public Service Health Care Plan (PSHCP) coverage?

If you wish to change your PSHCP coverage, contact the Superannuation Sector to obtain a PSHCP application form.

10. Can I continue dental coverage after I retire?

If you are entitled to an immediate pension at retirement, your personnel office will provide you with the necessary form to enroll in the Pensioners' Dental Services Plan. If you are entitled to a pension commencing at a later date, the Superannuation Sector will provide the enrollment form to you at that time. With limited exceptions, you must enroll in the plan when you are first eligible to do so if you wish to have this coverage. More information on the Pensioners' Dental Services Plan is available from the Treasury Board of Canada Secretariat's site.

11. I am still employed in the Public Service. Will I be able to purchase Canada Savings Bonds through monthly deductions from my pension after I retire?

Yes, but only if you presently have or start a Canada Savings Bonds deduction from your pay while you are still employed. The Bank of Canada has confirmed that starting with the 2003 Canada Savings Bonds campaign (October 1 to October 31), Canada Savings Bonds payroll savings application forms will no longer be available to retired Public Service employees. This means that if you wish to participate in the Payroll Savings Program after retirement, you must ensure that you have an existing Canada Savings Bonds deduction from your salary prior to retiring and that you request to continue the deduction from your pension. You may start a deduction during any Canada Savings Bonds campaign preceding your retirement. When you are about to retire, you can request that the deduction be transferred to your pension. Click here for the information kit.

12. I am a retired Public Service employee, and I am not a participant in the Canada Savings Bonds Payroll Savings Program at the present time. Can I apply to start a Canada Savings Bonds deduction from my pension?

No. The Bank of Canada has confirmed that, starting with the 2003 Canada Savings Bonds campaign (October 1 to 31), pensioners who are not already participating in the Payroll Savings Program, cannot apply for and start a Canada Savings Bonds deduction from their pension. Please note, however, that you may still purchase Canada Savings Bonds, either, directly online at www.csb.gc.ca, by calling toll free 1 888 773-9999 (Monday to Friday, 8 am to 8 pm, Eastern Time) or in person at your financial institution. Click here for the information kit.

13. I am a retired Public Service employee, and I am a participant in the Canada Savings Bonds Payroll Savings Program. Can I continue to contribute to my Canada Savings Bonds plan(s) as a pensioner?

Yes. Your bond purchases under your existing plan(s) will continue to be deducted automatically from your monthly pension payments and in subsequent years unless you request that the deduction be cancelled. Click here for the information kit.

14. I am a retired Public Service employee, and I am a participant in the Canada Savings Bonds Payroll Savings Program. Can I open a new Canada Savings Bonds plan under the Payroll Savings Program?

No. As a pensioner, you may only continue to contribute to your existing Canada Savings Bonds plan(s). During the annual campaign period from October 1 to October 31, you may, if you wish, request to increase your deduction amount. The option of opening a new plan and having money deducted from your pension is not available. However, you may still purchase Canada Savings Bonds, either, directly online at www.csb.gc.ca, by calling toll free 1 888 773-9999 (Monday to Friday, 8 am to 8 pm, Eastern Time) or in person at your financial institution.Click here for the information kit.