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Retired Member - Newly Retired

Printable Version

The following information is intended to provide you with an understanding of your pension entitlements and availability of insurance coverage as a member of the Public Service Pension Plan (PSPP).

You may want to know...

If you have not yet chosen a benefit, what are your pension benefit options now that you are retired from the Public Service?

How do you make a benefit option if you have not already done so?

What is the formula for calculating your basic pension benefit?

When can you expect to receive your first pension cheque?

Why is your Public Service Pension Plan (PSPP) pension reduced at age 65?

Is your pension benefit protected from inflation?

What happens if you haven't finished paying for a period of prior service (Service Buyback) when you retire?

Does your health care coverage continue now that you are retired?

Does your dental coverage continue now that you are retired?

Does your Supplementary Death Benefit (SDB) coverage continue now that you are retired?

Does your Disability Insurance (DI) Plan coverage continue now that you are retired?

If you have not yet chosen a benefit, what are your pension benefit options now that you are retired from the Public Service?

Your benefit options vary depending on your age and your years of pensionable service when you leave the Public Service.

If you have at least 2 years of pensionable service you may be entitled to the following options:

Transfer Value

Deferred Annuity

Annual Allowance

Immediate Annuity

If you have less than 2 years of pensionable service, generally you are eligible for the following option:

Return of Contributions

You may also be eligible to transfer all or part of your accrued pension credits to another pension plan through a Pension Transfer Agreement regardless of the number of years of pensionable service that you have to your credit.

How do you make a benefit option if you have not already done so?

To make your option, you must complete one of the following forms:

Notice of Termination and Option for Benefit-Employees with Two or More Years of Pensionable Service (PDF 423KB)

Notice of Termination and Option for Benefit-Employees with Less than Two Years of Pensionable Service (PDF 2.21MB)

Once you have completed the form, you must submit it to your Compensation Advisor who will forward it to the Superannuation, Pension Transition and Client Services Sector (Superannuation Sector).

You should remember that you have one year from the day you leave the Public Service to make your benefit option. If you do not make your option during this period, you are considered to have chosen a deferred annuity payable at age 60. Subsequently, you may choose to receive an annual allowance at any time between the ages of 50 and 60.

What is the formula for calculating your basic pension benefit?

Generally, the formula for calculating your basic pension is as follows:

Number of years of pensionable service

Average salary for your 5 consecutive years of highest paid service

Divide this amount by 12 to determine your monthly pension benefit.

The Pension Benefits Calculator can help you estimate your yearly and monthly pension based on the information you enter.

When can you expect to receive your first pension cheque?

The Superannuation Sector is normally able to issue your first pension cheque within 45 calendar days after the date of retirement, provided that your personnel office has submitted the required information prior to retirement.

Why is your Public Service Pension Plan (PSPP) pension reduced at age 65?

Your PSPP pension is reduced due to the coordination with the Canada Pension Plan (CPP) / Quebec Pension Plan (QPP). Your PSPP retirement benefit will be reduced at age 65 or earlier should you begin receiving a CPP/QPP disability pension.

Is your pension benefit protected from inflation?

Yes. Your Supplementary Benefits (Indexation) ensure that your pension will be protected from losing its value as a result of inflation or increases in the cost of living for the rest of your life, unless you become re-employed and a contributor to the PSPP. For more information on the effects of re-employment, refer to Re-Employment After Retirement.

What happens if you haven't finished paying for a period of prior service (Service Buyback) when you retire?

If you retire on pension before paying all your installments for prior service, your pension will be calculated to include all your Service Buyback, but the unpaid installments will be deducted monthly from your pension benefit.

Does your health care coverage continue now that you are retired?

Yes. PSPP pensioners are eligible for coverage under the Public Service Health Care Plan (PSHCP) when receiving a PSPP pension. Learn more about what happens to your coverage when you retire.

Note: Certain Agencies and Public Service Corporations do not participate in the regular Public Service insurance programs. Former employees of those Agencies or Corporations cannot participate in these programs as pensioners.

Does your dental coverage continue now that you are retired?

Your Public Service Dental Care Plan coverage immediately ceases when you retire. However, as a Public Service pensioner you may have the option to enroll in the Pensioners' Dental Services Plan (PDSP). For details on how to enroll, refer to PDSP Enrollment Information.

You are not eligible for this coverage if you were affected by a divestiture or withdrawal of an organization as a participating employer under the PSPP.

Does your Supplementary Death Benefit (SDB) coverage continue now that you are retired?

Your Supplementary Death Benefit Plan (SDB) coverage continues if you are eligible to receive an immediate pension within 30 days of your departure. If you do not receive an immediate pension, you must elect to continue your SDB coverage.

As well, your surviving spouse, common-law partner and children may be entitled to survivor benefits and child allowances in the event of your death.

Does your Disability Insurance (DI) Plan coverage continue now that you are retired?

Your Disability Insurance Plan coverage ends on the day your employment terminates. If, however, you become totally disabled before you retire or resign from the Public Service, your disability benefits will continue to be paid for as long as you remain totally disabled and have not reached your 65th birthday. Disability benefits cease when you reach age 65.