Congratulations! Planning for retirement is an exciting event in your life, however, it is also a time to make some important decisions. The following information is intended to provide you with a variety of tools and products to help you choose the benefits that are right for you.

You may want to know…

• Can you increase your pensionable service prior to retirement?
• What steps should you follow when preparing to retire?
• Once you have chosen your retirement date, who should you notify?
• How do you choose a pension benefit option?
• Why does your pension public service pension plan bridge benefit stop at age 65?
• Is your pension benefit protected from inflation?
• Does your retirement date affect the pension increases (indexing) you receive?
• What happens if you have not finished paying your pension contributions or benefit premiums/ contributions for your period of leave without pay when you retire?

Can you increase your pensionable service prior to retirement?
You may have periods of prior service that you can buy back to increase your pension. Any service buyback has to be made before you retire.

If you have not finished paying for an existing service buyback, you will have to continue making payments after you leave. For more information, refer to the Service Buyback Package.

What steps should you follow when preparing to retire?

Step 1: Take the time to familiarize yourself with your pension options.

Your options vary depending on your age and your years of pensionable service when you leave the federal public service.

If you have at least 2 years of pensionable service, you may be entitled to:

• Transfer Value
• Deferred Annuity
• Annual Allowance
• Immediate Annuity

If you have less than 2 years of pensionable service, generally you are entitled to:

• 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.

If you have pensionable service with Correctional Service Canada (CSC), you may be entitled to different pension options and should contact the Public Service Pension Centre.

More detailed information on the retirement process, required forms, and impact on insurance benefits can be found in the Pension Entitlement Information Package.

Step 2: Find out the value of each of your pension options.

Examine your most recent personal Pension and Insurance Benefits Statement, as it provides you with a summary of your entitlements and their approximate value. The Compensation Web Applications (CWA) - Pension Calculator can also help you estimate your yearly and monthly pension based on the information you enter.

As well, the public service offers several Retirement Courses which cover subjects such as: financial planning, the public service pension plan, legal aspects of retirement, health and emotional issues.

Step 3: Find out which of your insurance benefit plans continue after retirement

• Retired members of the public service pension plan are eligible for coverage under the Public Service Health Care Plan (PSHCP) when receiving a pension. Learn more about what happens to your coverage when you retire.
• Your Public Service Dental Care Plan (DCP) coverage immediately ceases when you retire. However, as a retired member of the public service pension plan, you may have the option to enrol in the Pensioners' Dental Services Plan (PDSP). For details on how to enrol, refer to PDSP Enrolment Information.
• 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.
• Your Supplementary Death Benefit Plan (SDB) coverage continues if you are eligible to receive an immediate pension within 30 days of the date you terminate employment. If you do not receive an immediate pension, you may be eligible to elect to continue your SDB coverage.
• If you are a member of the Public Service Management Insurance Plan (PSMIP), your life insurance and that of your dependants will cease when you retire, subject to a 31-day extension period. During that extension period, you will be able to obtain an individual private life insurance policy. You must make your own arrangements directly with Industrial Alliance Insurance and Financial Services Inc. to convert your insurance to a private policy.
  

Accidental Death and Dismemberment (AD & D) and Long-term Disability (LTD) insurances under the PSMIP cannot be converted to private policies, and terminate on the day you leave the public service.

Step 4: Estimate what your financial requirements will be when you leave the public service.

Once you have chosen your retirement date, who should you notify?
You must notify your compensation advisor and the Public Service Pension Centre once you have chosen your retirement date. This should be done at least 3 months in advance of your retirement date.

How do you choose a pension benefit option?
When you inform the Pension Centre of your retirement date, they will provide you with a Pension Benefit Options Statement which you must complete in order to choose your benefit option. Detailed information on the retirement process, required forms, and impact on insurance benefits can be found in the Pension Entitlement Information Package.

Why does your public service pension plan bridge benefit stop at age 65?
The bridge benefit portion of your public service pension will stop when you reach 65 or earlier if you begin to receive Canada or Quebec Pension Plan (CPP/QPP) disability benefits. This is due to the due to the coordination of contributions and benefits between the public service pension plan and CPP/QPP.

Is your pension benefit protected from inflation?
Yes. Your pension will be protected from losing its value as a result of inflation (increases in the cost of living) for the rest of your life, unless you become re-employed and a contributor to the public service pension plan. This protection is referred to as the annual pension increase (indexing).

Does your retirement date affect the pension increases (indexing) you receive?
The Public Service Superannuation Act (PSSA) provides for annual increases, based on increases in the Consumer Price Index (CPI), on all retirement and survivor benefits. The increases usually begin January 1 following the year of retirement and are effective each year after that.

The first indexing amount will be prorated to reflect the number of full months remaining in the year following the month in which you retired. In subsequent years, you will be entitled to the full increase.

Example: If an employee retires on August 20, in January of the following he would be entitled to a pension indexing increase of 4/12 (for September to December).

What happens if you have not finished paying your pension contributions or benefit premiums for your period of leave without pay when you retire?
Any pension and Supplementary Death Benefit contributions still owing for a period of leave without pay have to be paid when you retire. Information on payment options for these contributions can be found in the Pension Entitlement Information Package - Two or More Years of Pensionable Service.

Any insurance benefit premiums or contributions still owing for a period of leave without pay have to be paid when you retire. Contact your compensation advisor for further information.