Here you will find a list of useful pension and benefits terminology.

Please select a letter from the alphabet to go to the terms beginning with that letter, or browse the full list of terms.

A

Annual Allowance (Allocation annuelle)

A benefit available to plan members who have more than two years of pensionable service, who retire before age 60 and are not entitled to an immediate annuity. This benefit is a reduced pension that takes into account the early payment of a retirement pension. It becomes payable at age 50 at the earliest.

Average Salary for Pension Purposes (Salaire moyen aux fins de la pension)

Salary of the five consecutive years of highest paid pensionable service in the public service. The average salary of those five years is then used to calculate pension benefits under the public service pension plan.

Average Maximum Pensionable Earnings (AMPE) (Moyenne des maximums des gains ouvrant droit à pension (MMGP))

The calculation of a five-year average using:

• the Year's Maximum Pensionable Earnings (YMPE) under the Canada Pension Plan / Quebec Pension Plan (CPP/QPP) for the year of your retirement from the public service or the year in which your CPP or QPP regular retirement pension commences, whichever is earlier and
• the Year's Maximum Pensionable Earnings (YMPE) for the four preceding years.

Where the CPP/QPP reduction commenced prior to June 17, 1999, the AMPE is calculated over a three-year period.

Example: The AMPE for someone retiring in 2004 is $39,080.

This is the average of the YMPE for 2004, $40,500, and the YMPE for the four preceding years; that is $39,900 in 2003, $39,100 in 2002, $38,300 in 2001 and $37,600 in 2000.

$195,400 (total YMPE) ÷ 5 = $39,080 (AMPE)

B

Bridge Benefit (Prestation de raccordement)

When you retire, you will receive both a lifetime pension and a bridge benefit. A bridge benefit is a temporary benefit, payable until age 65 (the bridge benefit stops if you become entitled to CPP/QPP disability benefits). Regardless of when you start your CPP/QPP pension, your bridge benefit payments will stop at age 65.

C

Canada Pension Plan (CPP) (Régime de pensions du Canada (RPC))

A mandatory earnings-related pension plan implemented January 1, 1966, to provide basic retirement income to Canadians between the ages of 18 and 70 who work in all the provinces and territories, except in the province of Quebec. Quebec operates its own pension plan similar to the CPP for persons who work in that province.

Child (Enfant)

For the purposes of the Public Service Health Care Plan (PSHCP) and Public Service Dental Care Plan (PSDCP):
Child includes an unmarried child of a member, of the member's spouse or of the member's survivor (if entitled to an ongoing public service pension plan benefit), including a stepchild, an adopted child and a foster child for whom the member stands in place of a parent.

To be dependant, the child must be:

• under 21 years of age;
• under 25 years of age and attending an accredited school, college or university on a full-time basis; or
• incapable of engaging in self-sustaining employment by reason of mental or physical impairment and is primarily dependant upon the member, provided such impairment occurred by the ages indicated above.

Survivors are not covered under the Public Service Dental Care Plan. They are covered under the Pensioners' Dental Services Plan (PDSP).

For the purposes of the PDSP:
Child includes an unmarried child of a member, of the member's spouse or of the member's survivor (if entitled to an ongoing public service pension plan benefit), including a stepchild, an adopted child or a child who is not an adopted child or step-child but is a child who is financially dependant primarily on the member, the member's spouse or common law partner for support and maintenance and with whom the member has a relationship, proven to the satisfaction of the Minister,

• like that between parent and child;
• which began before the child reached the age of majority for the province in which the member is ordinarily resident;
• which is expected to be permanent or of a lengthy duration; and
• in which, in the case of a child who is under the age of majority of the province in which the member is ordinarily resident, the member, the member's spouse or common law partner has the care and control of the child;

provided such child is

• under 21 years of age;
• under 25 years of age and attending an accredited school, college or university on a full-time basis; or
• incapable of engaging in self-sustaining employment by reason of mental or physical impairment and is primarily dependant upon the member, provided such impairment occurred by the ages indicated above and the impaired child was covered under the PDSP or PSDCP prior to 21, or as a dependant between 21 and 25.

Child/Dependant (Enfant/Personne à charge)

For purposes of the public service pension plan:
In the event of a plan member's death, a child/dependant may be entitled to a children allowance under the public service pension plan. To be eligible for an allowance, a child must be under 18 years of age. Children between 18 and 25 may receive allowances if they are enrolled in school or another educational institution full-time and have attended continuously since the age of 18 or the date of the member's death, whichever occurs later.

Compensation Web Applications (CWA) (Applications Web de la rémunération (AWR))

CWA is a suite of self-service pay, pension and insurance applications enabling employees to monitor and manage their personal compensation information, as well as calculate pay, pension and insurance "what if" scenarios to assist with financial planning. CWA allows employees to view their Pension and Insurance Benefits Statement, their Statement of Earnings (Pay Stub), and request changes to their Voluntary Deductions. Employees can also use the Pension Benefits Calculator, the Service Buyback Estimator, the Retirement Package, the Pension Portability Package, the Service Buyback Package and the Public Service Health Care Plan (PSHCP) Web Application to help them make important pension and insurance related decisions.

D

Date of Retirement (Date de la retraite)

The date on which a pension plan member most recently ceased to be employed, which is normally the day following the last day for which the plan member received salary. If the plan member was on authorized leave without pay, the retirement date is the day following the date on which the employing department advises the Public Service Pension Centre that the plan member ceased to be employed.

Deferred Annuity (Pension différée)

A benefit that is available to most plan members who leave the public service before age 60 and have at least two years of pensionable service. This benefit is calculated using the same formula as an immediate annuity, but payment is deferred until age 60. A plan member entitled to a deferred annuity may request an annual allowance at any time after he/she reaches age 50.

Defined Benefit Pension Plan (Régime de pension à prestations déterminées)

A type of registered pension plan that promises a certain level of pension, usually based on the plan member's salary and years of service. The public service pension plan is a defined benefit pension plan. This is contrasted with defined contribution pension plans where the benefit at retirement is determined by the amount of annuity that the accumulated contributions plus interest can purchase at retirement.

Dependant of a Survivor (À la charge d'un survivant)

For the purposes of group insurance plans:
The spouse or common law partner of a survivor, or any children that meet the definition of child.

Designated Beneficiary for Supplementary Death Benefit Plan Purposes (Bénéficiaire désigné aux fins du Régime de prestations supplémentaires de décès)

The individual who is named by a plan member to receive the Supplementary Death Benefit and, if applicable, the minimum benefit payable under the public service pension plan after the death of a member. If there is no designated beneficiary named, then the benefit will be paid to the member's estate.

E

Elective Service (Service accompagné d'option)

An eligible period of employment, either in the public service or with some other employer that occurred before the employee became a contributor to the public service pension plan. The plan member may choose to count these periods of prior service as pensionable service.

G

Garnishment, Attachment and Pension Diversion Act (GAPDA) (Loi sur la saisie-arrêt et la distraction de pensions (LSADP))

An Act to provide for the diversion of pension benefits payable under various Acts, including the Public Service Superannuation Act, to satisfy or partially satisfy an obligation to pay maintenance or support to a spouse, child or other dependant.

I

Immediate Annuity (Pension immédiate)

A benefit payable to plan members who retire at any time after reaching age 60 with at least two years of pensionable service or after reaching age 55 with at least 30 years of pensionable service or at any age in case of disability.

Increasing Your Pension (Augmenter votre pension)

Purchase of prior eligible service that a contributor may count as pensionable, at his option, subject to certain conditions.

Indexing (Indexation)

It is the automatic adjustment of pensions in pay, or accrued pension benefits (deferred annuities), in accordance with changes in the Consumer Price Index. Public service pensions are indexed in January of each year in order to maintain their purchasing power.

Insurance Web Applications (Applications Web sur les assurances)

Part of the Compensation Web Applications, these personalized web tools enable employees and benefit plan members to manage their coverage information online.

M

Minimum Benefit (Prestation minimale)

A benefit that is equal to the payment of the plan member's basic pension for a period of five years. If the plan member or his eligible surviving spouse or children have not received, in total, pension payments equal to five times the amount of the plan member's annual basic pension, the balance in the form of a lump sum becomes payable to his designated beneficiary under the Supplementary Death Benefit (SDB) or, if none, to his estate.

P

Pension Benefits Division Act (PBDA) (Loi sur le partage des prestations de retraite (LPPR))

An Act to provide for the division of pension benefits payable under the Public Sector Compensation Act (and various other federal statutes) after the breakdown of a marriage or common-law relationship. An application for division may be submitted if a written agreement or Court Order states that the plan member's pension is to be divided.

Pensionable Service (Service ouvrant droit à pension)

Periods of service to the credit of a public service pension plan member. This includes any periods of purchased service (service buyback/elective service).

Pensioners' Dental Services Plan (PDSP) (Régime de services dentaires pour les pensionnés)

The Pensioners' Dental Services Plan covers specific dental services and supplies that are not covered under the pensioner's provincial/territorial health care or dental care plan. It is contributory and, although it is completely separate from the dental care plan for federal public service employees, it is similar with costs shared on a 60/40 basis between employer and pensioner, respectively.

Pension Transfer Agreement (PTA) (Accord de transfert de pensions (ATP))

An Agreement negotiated between the Government of Canada and an eligible employer to provide portability of accrued pension credits from one pension plan to the other.

Pension Portability (Transférabilité des pensions)

Arrangements for the transfer of an employee's pension credits to another pension plan. See the explanations on Pension Transfer Agreement and Transfer Value.

Plan Member (Participant au régime)

If you work for the federal public service, you become a member of the public service pension plan and are required to contribute if:

• You are an indeterminate employee hired to work an average of at least 12 hours a week.
• You are an employee, hired for more than 6 months to work an average of at least 12 hours a week.
• You are an employee, initially hired for 6 months or less to work an average of at least 12 hours a week, and have worked for more than 6 continuous months.

Public Sector Pension Investment Board (PSPIB) (Office d'investissement des régimes de pensions du secteur public (OIRPSP))

Board established on April 1, 2000 under the Public Sector Pension Investment Board Act. The Board's mandate is to invest the employer and employees pension contributions made on or after April 1, 2000 in the financial markets.

Public Service Health Care Plan (PSHCP) Web Application (Application Web du Régime de soins de santé de la fonction publique)

Secure web tool that enables employees and PSHCP plan members to manage their PSHCP coverage information online. This tool is based on the current paper application form and allows users to start, stop, amend, or reinstate their PSHCP coverage.

public service pension plan (Régime de pension de retraite de la fonction publique)

Pension plan implemented on January 1, 1954 under the Public Service Superannuation Act that provides benefits for public service employees payable on retirement, termination of service or disability and for their survivors after death.

Public Service Superannuation Act (PSSA) (Loi sur la pension de la fonction publique (LPFP))

An Act to provide pension benefits to eligible federal public servants and their dependants. The public service pension plan provides benefits for public service employees payable on retirement, termination of service or disability and for their survivors after death under the provisions of the PSSA.

Q

Quebec Pension Plan (QPP) (Régime de rentes du Québec (RRQ))

A pension plan similar to the Canada Pension Plan, which covers persons working in the province of Quebec. It is administered by the Régie des rentes du Québec.

R

Retirement Compensation Arrangement (RCA) (Convention de retraite (CR))

A plan which provides benefits that exceed the allowable limits for a registered pension plan under the Income Tax Act.

Return of Contributions (ROC) (Remboursement de cotisations)

A benefit that is available to contributors who leave the public service with less than two years of pensionable service under the public service pension plan. It includes employee contributions plus interest, if applicable.

S

Service Buyback (Rachat de service)

Purchase of prior eligible service that a contributor may count as pensionable, at his option, subject to certain conditions.

Spouse/Common Law Partner (Conjoint ou conjoint de fait)

For the purposes of group insurance plans:
The person married to the member or living in a common law relationship with the member for a continuous period of at least one year and whom the member has officially declared to be his or her spouse.

Supplementary Death Benefit (SDB) (Prestation supplémentaire de décès (PSD))

Decreasing term life insurance benefit equal to twice the annual salary of the plan member; coverage decreases by 10 percent per year starting at age 66. A minimum amount of coverage ($10,000) is provided at no cost to the plan member at age 65 for plan members entitled to an immediate annuity or an annual allowance payable within 30 days after termination of employment in the public service. This minimum coverage is maintained for life.

Supplementary Retirement Benefits Act (SRBA) (Loi sur les prestations de retraite supplémentaires (LPRS))

An Act to provide supplementary retirement benefits (indexing) for those in receipt of a pension payable out of the Consolidated Revenue Fund. For the full Act, refer to the Department of Justice.

Survivor (Survivant)

For the purposes of group insurance plans:
The person who at the time of the plan member's death:

• is married to the member or living in a common law relationship with the member for a continuous period of at least one year and whom the member has officially declared to be his or her spouse and is entitled to an ongoing public service pension plan benefit as the survivor of a member; or
• is the child of the deceased member, where there is no spouse as defined above.

See Spouse and Child.

Survivor (Survivant aux fins de la pension)

For the purpose of the pension plan:
The survivor of a contributor is the person who, at the time of the contributor's death:

• was married to the contributor (plan member) before retirement; or
• was cohabitating in a relationship of a conjugal nature with the contributor prior to retirement and for at least one year prior to the date of death.

Survivor Benefit (Prestation au survivant)

A pension benefit that is paid to the eligible survivor of a plan member who dies. The common-law survivor of a plan member may be entitled to a survivor benefit if this person has lived with the plan member in a relationship of a conjugal nature prior to retirement and for at least one year prior to the date of death.

T

Transfer Value (Valeur de transfert)

A benefit option available to contributors who leave the public service before age 50 with at least two years of pensionable service. This benefit is the actuarial value of the plan member's future pension benefits. It must be transferred to another registered pension plan, to a retirement savings vehicle or to a financial institution to purchase an annuity. For more information, visit the Transfer Value Information Package.

Transfer Value Reinstatement (Rétablissement de service visé par une valeur de transfert)

A transfer value reinstatement is a special service buyback to reinstate the pensionable service for which you received a transfer value benefit under the Public Service Superannuation Act (PSSA).

Transformation of Pension Administration (Transformation de l'administration des pensions)

This transformation will modernize the public service pension systems and enhance service to plan members and their beneficiaries. Over the next four and a half years, PWGSC will replace the pension systems as well as centralize and improve client service. It will offer self-service options and automated initiation of service requests.

Treasury Board of Canada, Secretariat (TBS) (Secrétariat du Conseil du Trésor du Canada (SCT))

The TBS is the administrative arm of the Treasury Board. It provides advice and support to the Treasury Board. The President of the Treasury Board is the minister responsible for the Public Service Superannuation Act (PSSA), including financial management of the Public Service Superannuation Account and the Public Service Pension Fund.

W

Web Portal (Portail Web)

A Web Portal is a gateway through which the user may access information and services from different Internet sources. While a Portal offers well-organized information, it also supports a search function to obtain information from multiple Web sites. For example, Your Public Service Pension and Benefits Web Portal offers a collection of customized pension and benefits information, tools and services and also links to various Web sites, such as the Treasury Board of Canada Secretariat, related to the federal public service pension plan and the group insurance benefits plan.

Y

Year's Maximum Pensionable Earnings (YMPE) (Maximum des gains annuels ouvrant droit à pension (MGAP))

The maximum earnings for which contributions can be made to the Canada Pension Plan / Quebec Pension Plan (earnings ceiling) during the year.