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Pension policy is a work in progress. The proposed changes cannot be considered final until they have received Treasury Board's approval.
Introducing Part I.1 of the
Canadian Forces Superannuation Act (CFSA)
Who is eligible to join?
Part-time Reserve Force members, after earning 10% of the YMPE in two consecutive 12-month periods (considering pensionable earnings and service since 1999)
Here's how this works.
| Member joined Reserve Force | January 1, 2003 |
|---|---|
| 2003 pensionable earnings | $4,000(above 10% of 2003 YMPE of $39,900) |
| 2004 earnings | $4,500(above 10% of 2004 YMPE of $40,500) |
| Must join plan | January 1, 2005 |
How does Part I.1 work?
The plan provides a benefit based on set formulas that consider your updated pensionable earnings during plan membership.
Your pension is calculated each year. As time goes on, the pension will be updated by the same percentage as the Canadian Forces wage index. Your pension will be paid monthly and indexed each year.
If you have two or more years of pensionable service and release before being eligible for an immediate pension, a deferred annuity is payable; with less than two years of pensionable service, a return of contributions with interest is paid.
Your survivor receives a monthly pension if you die with at least two years of pensionable service; before that, a return of your contributions with interest is paid. Children between 18 and 25 receive a pension while studying full-time, even if schooling is interrupted.