|
Pension Benefits Report
Click here to save the file
Pension Benefits
Report - Pension Benefits Division Act
Pension Benefits Report
Pension Benefits Division Act
This report presents the approximate value for a potential
division under the Pension Benefits Division Act (PBDA). The value is an estimate
of the maximum potential payment under the PBDA in respect of the pension benefits
acquired by the plan member under the Public Service Superannuation Act (PSSA)
and a Retirement Compensation Arrangement (RCA) during the period subject to
division (PSTD). Additional data related to the member's pension benefits accrued
during this period are also provided.
The value provided is an estimate as of the date of the report.
If an application for division is made, the maximum amount payable will be the
value at the date of payment. This may differ from the estimate depending upon
changes in the member's circumstances, or in the actuarial assumptions, that
may have occurred in the interim. In particular, the following changes
can alter the value significantly:
- if the assumed rate of return, which is established each
month based on current market conditions, increases or decreases
- if the member ceases to be employed or a pensioner becomes
re-employed in the federal public service
- if the member becomes vested (see item 8 below)
To help you understand the attached PBDA Pension Benefits Report,
an explanation of each of the data items is provided below.
1. MEMBER NAME: The name of the member against whose pension benefits the request is being applied.
|
2.
SUPERANNUATION NUMBER: The member's identification number for pension
plan purposes.
|
3. REQUESTED BY: The name of the person who submitted the request for information.
|
4.
DATE PREPARED: The date on which the PBDA Pension Benefits Report
was produced (day/month/year).
|
5.
PROCESS: The word APPLICATION appears if an application has
been made; otherwise, the word ESTIMATE appears.
|
6. PREPARED BY: For office use only.
|
7. DATE OF BIRTH: The date of birth of the member.
|
8.
EMPLOYEE IS: The word VESTED or NON-VESTED appears:
Vested means that the member is entitled to an immediate or deferred annuity or has the minimum service to be eligible for an annuity if he or she were to terminate employment as of the date the report was prepared (4);
Non-vested means that the member would be entitled only to a return of contributions if he or she were to terminate employment as of the date the report was prepared (4).
|
9.
DATE OF IMMEDIATE ANNUITY: The date when the member became or could
become entitled to a full pension, without regard to entitlement by reason
of disability. The date indicated is usually the member's 60th birthday
but may be earlier if the member has qualified or could qualify for a
full pension at an earlier date.
|
10.
STATUS OF MEMBER IS: The word ACTIVE, PENSIONER, or
TERMINATED appears:
Active means that the member is still employed and contributing
under the PSSA/RCA;
Pensioner means that the member is no longer employed with the federal government and is receiving a pension or is entitled to receive a pension commencing at a future date.
Terminated means that the member has terminated employment and is entitled to a lump-sum benefit, has opted to transfer to another plan, or has not yet selected the type of pension benefit that he or she wishes to receive. (For purposes of the PBDA, a member who is terminated and vested is considered to be entitled to a deferred annuity payable at age 60.)
|
11. PERIOD COVERED:
From: The date on which you started living together in a marriage or common-law relationship.
To: The date on which you stopped living together.
These dates are those indicated in the court order or spousal agreement as the dates of cohabitation or those you have indicated on the Statutory Declaration. If a court order is submitted which indicates a different period for purposes of dividing the pension benefits, the period specified in the order will apply.
NOTE: If you were still living together at the time of this request, the PSTD is considered to have ended on the 31st of December of the year prior to the year in which you submitted your request.
|
12. CONTRIBUTIONS: There are four types of service in respect of which contributions are made. Not all will necessarily apply in each case.
1. Current Service (12.1): The length of basic service accumulated during the PSTD for which regular contributions from salary were made, expressed in years and days. Also indicated is the Canada or Quebec Pension Plan (CPP/QPP) service during the PSTD (since January 1, 1966) which determines the amount of the reduction associated with the integration of the PSSA and the CPP/QPP. If the member is vested, there will be no dollar amount shown for Current Service Contributions (12.1). If the member is non-vested, the report presents both the service accumulated and the contributions made during the PSTD. The contribution amount does not include interest, but does include any lump sum contributions made to Elective Service/LWOP (12.2) or RTA/CFSA/RCMP (12.3). In calculating Current Service, periods of leave without pay during the PSTD are included in this field only if paid for entirely within that period. If the leave without pay occurred prior to the PSTD or was only paid in part during the PSTD, the appropriate credit is included under Elective Service (12.2).
2. Elective Service/LWOP (12.2): The portion of pensionable service, expressed in years and days, paid for during the PSTD for which the member has elected to pay additional contributions, and the amount paid during the PSTD. As noted above, any leave without pay service paid for during the PSTD, other than periods credited under Current Service, will also show as a credit in this field.
3. RTA/CFSA/RCMP (12.3): The pensionable service during the PSTD, and the amount of contributions, transferred to the PSSA from another pension plan under the terms of a reciprocal transfer agreement or from the Canadian Forces or RCMP superannuation plans. The credit relates to the period of service occurring during the PSTD, irrespective of when the funds were transferred to the PSSA, in relation to the amount of service purchased by the transfer. If a balance of service was remaining which the member elected to purchase, that service is credited as Elective Service according to what portion of the cost was paid during the PSTD. The member may be required to repay pension received from the Canadian Forces or RCMP following a transfer but these payments are not taken into account when determining the service credited by the transfer.
4. Non-Elective Service (12.4): The length of any period
of non-elective service accumulated during the PSTD, automatically credited
to the member with or without contributions, expressed in years and days.
Also indicated is the CPP/QPP service during the PSTD.
|
13.
SPLIT %: The percentage of the spouse's entitlement in respect of
the PSTD as indicated in the order or agreement, if applicable (usually
50%). If there is no order or agreement, or no percentage is indicated,
50% will be shown, the maximum allowable under the PBDA. If the spouse
is entitled to a fixed dollar amount that is less than the total of the
maximum transferable amount (MTA) (14.1) and the RCA amount (14.3), 0%
will be indicated.
|
14.
PENSION BENEFITS: This section presents three pieces of information
that relate to the value of the member's pension benefits subject to division:
1. Maximum Transferable Amount (14.1): The maximum amount
that could be transferred under the PSSA to the spouse's retirement savings
vehicle. When a member is non-vested, the MTA is 50% of the amount
contributed by the member during the PSTD plus interest. If the member
is vested, the MTA is 50% of the value of the member's pension
entitlement for the PSTD, indexed from the end of that period. Actuarial
formulas are applied to calculate the present value effective the date
of the report (4) of the member's future pension benefits accrued
during that period, excluding disability benefits. If the member is a
pensioner, payments made to the member prior to the date of division are
not included in the value. The actuarial assumptions are set out
in the Pension Benefits Division Regulations and relate to termination,
retirement, mortality, and future interest and indexation.
2. Split Amount (14.2): In most cases, the total of MTA
and RCA will be shown in this field. However, if the spouse is entitled
to a fixed amount, or to less than 50 % of the benefits acquired during
the PSTD, the amount to which the spouse is entitled will be shown. In
no case will this amount exceed the total of MTA and RCA.
3. RCA Amount (14.3): The maximum amount which relates to
benefits payable from RCA. An RCA provides for benefits similar to the
PSSA that cannot be paid under a registered pension plan. A division payment
in respect of RCA benefits is payable directly to the spouse. The RCA
portion of the division payment is subject to a withholding of tax at
source as it is taxable income for the year in which it is paid.
|
15.
DEATH BENEFITS: There are two pieces of information:
1. Supp. Death Ben. (15.1): The dollar amount of benefits
that would be payable in respect of the member to an estate or a designated
beneficiary as a supplementary death benefit (i.e. life insurance) determined
effective the date of the report (4). This amount is presented for information
only, and does not form part of the MTA. It is calculated by using
the member's present salary (or at date of retirement) multiplied by 2,
rounded up to the nearest multiple of $1,000 (if it is not a multiple
of $1,000). Reductions in coverage of 10% per year apply starting at age
66 (for some participants the reduction starts at age 61) and certain
members are entitled to a minimum lifetime coverage of $10,000.
2. Min. Benefit (15.2): The minimum benefit for the PSTD
that would be payable to the member's estate or beneficiary if the member
were to die without having received any pension and without eligible survivors.
This benefit is calculated by multiplying the annuity subject to division
(16) by 5. The MTA and RCA are calculated taking into consideration the
possibility of a minimum benefit payment, reduced by the amount of any
basic pension in respect of the PSTD received by the member. An amount
appears in this field only if the member is vested.
|
16. ANNUAL AMOUNT OF THE ANNUITY:This amount is the yearly pension benefits earned during the PSTD. It is calculated as follows:
the years of pensionable service paid for during the PSTD multiplied by
the member's average salary for the best 5 * consecutive years at the end of the PSTD multiplied by 2%
This annual annuity amount forms the basis of the actuarial calculations to determine the MTA (14.1). A value appears in this field only if the member is vested.
* The best 6 consecutive years will apply if the PSTD ended prior to June 17, 1999.
|
ADM 270 (E) (2000/04/01)
|