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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.
Changes to Part I of the
Canadian Forces Superannuation Act (CFSA)
- Regular Force members
- Reserve Force members serving full-time for extended periods, after 1,674 paid days (55 months) of full-time Reserve Force service in a 60-month period
- The plan provides a defined benefit. There are set formulas to calculate your pension, using your pensionable earnings and years of pensionable service.
- Benefits are indexed.
- Your survivor and children receive plan benefits when you die.
See Your Pension Plan and Release Pay Benefits to review current CFSA provisions.
- De-linking pension eligibility from terms of service and increasing pension options. (Regular Force members now serving may be able to have their pension grandfathered, that is, determined under grandfathering provisions.)
- Introducing two-year vesting and locking-in.
- Using a different type of service to calculate your pension
- Improving survivor benefits for your survivor and children
The changes
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- Immediate unreduced pension with:
- Deferred annuity with:
- at least two years of pensionable service; if not eligible for an immediate unreduced pension; you can receive it as:
- Return of contributions, with interest with:
- Pension vests and benefits are locked-in after two years of pensionable service.
- Pensionable service determines your pension (all service to your credit, for example, paid CF service, RCMP service you are buying back, and Reserve Force service for which you contributed)
- On death with 2+ years of pensionable service, monthly pension to your survivor; before that, return of your contributions with interest.
Pension to your children between 18 and 25 while studying full-time, even if schooling is interrupted.
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