Here you will find answers to the 10 most commonly asked questions related to pension and benefits topics.

Pension plan

1. Every April 30, do you find yourself having to pay income tax?
2. What pension benefit will your spouse receive after your death?
3. Why is your pension being reduced at age 65?
4. You requested direct deposit, why are you getting a cheque in the mail?
5. Do you have Supplementary Death Benefit (SDB) coverage and who is your named beneficiary?

Insurance benefits

1. How do you find out why your Pensioners' Dental Services Plan (PDSP) or Public Service Health Care Plan (PSHCP) claim was refused?
2. What is included in your coverage as a retired member under the Pensioners' Dental Services Plan (PDSP) or the Public Service Health Care Plan (PSHCP)?
3. Are you covered under the Public Service Health Care Plan (PSHCP) if you need medical or hospital services while travelling outside Canada?
4. What happens to your Public Service Health Care Plan (PSHCP) coverage when you retire?
5. When does your Pensioners' Dental Services Plan (PDSP) coverage start?

Pension plan

1. Every April 30, do you find yourself having to pay income tax?
If so, you may be able to reduce your net tax owing or reduce the amount of your instalment payments by increasing the amount of tax withheld from your public service pension. To request that an additional amount be deducted at source from your pension, complete Form TD1, Personal Tax Credits Return, and submit it to the Public Service Pension Centre.

2. What pension benefit will your spouse receive after your death?
If you married before retirement, your legal spouse will receive approximately half of your unreduced pension (in other words, one-half of your pension before any reduction related to the Canada and Quebec Pension Plans (CPP/QPP) or related to early retirement is applied). Your common-law partner may also be eligible for a pension. Additional information may be obtained by contacting the Public Service Pension Centre.

3. Why is your pension being reduced at age 65?
When the Canada and Quebec Pension Plans (CPP/QPP) were introduced in January 1966, the contribution rates under the Public Service pension plan were co-ordinated with those under the CPP/QPP rather than added to them. As a result, you contributed to the Public Service pension plan at a reduced rate for any period of service after 1966. Consequently, your pension benefits are reduced automatically by a standard formula once you reach age 65, or earlier if you start to receive disability benefits from CPP/QPP. Additional information may be found on the Reaching age 65 life event.

4. You requested direct deposit, why are you getting a cheque in the mail?
The amount of your first cheque is normally different from your regular monthly pension cheque as it could include payment for a partial month or more, depending on when you retired. For that reason, your first cheque is always mailed to your home address. All regular monthly cheques after that are sent, as requested, to your bank account.

5. Do you have Supplementary Death Benefit (SDB) coverage and who is your named beneficiary?
Contributors to the Public Service pension plan, with the exception of employees of certain Public Service Corporations, participate in the SDB plan. Most participants are eligible to continue coverage after ceasing to be employed. To find out if you are a participant to the SDB plan and whom you have named as your beneficiary, please contact the Public Service Pension Centre.

Insurance benefits

1. How do you find out why your Pensioners' Dental Services Plan (PDSP) or Public Service Health Care Plan (PSHCP) claim was refused?
Claims under the PDSP and the PSHCP are processed by Sun Life Financial Assurance Company of Canada. Questions about PDSP/PSHCP claims should be directed to Sun Life at 1-888-757-7427 or you may access your claim by registering on their website at: www.sunlife.ca, under the heading Sign in, choose Plan Members.

2. What is included in your coverage as a retired member under the Pensioners' Dental Services Plan (PDSP) or the Public Service Health Care Plan (PSHCP)?
A general overview of what is covered under the PDSP can be found directly in the Pensioners' Dental Services Plan – Enrolment Information and Plan Summary booklet . The complete terms and conditions of the Plan including benefits and their limitations are set out in the PDSP Rules.

You may also find an overview of what is covered under the PSHCP directly in the plan member booklet "Public Service Health Care Plan – Benefits Coverage and Plan Provisions".

For questions regarding whether a specific service is covered under either plan, you may contact Sun Life Financial Assurance Company of Canada at 1-888-757-7427.

3. Are you covered under the Public Service Health Care Plan (PSHCP) if you need medical or hospital services while travelling outside Canada?
As a Canadian resident, you have coverage up to $500,000 (Canadian) for eligible health care services for each period of travel not exceeding 40 consecutive days. If your period of travel exceeds 40 consecutive days or if you reside outside Canada on a permanent basis, your coverage may differ. For additional information, you may contact Sun Life Financial Assurance Company of Canada at 1-888-757-7427.

4. What happens to your Public Service Health Care Plan (PSHCP) coverage when you retire?
If you retire and begin receiving an immediate on-going pension under the Public Service pension plan, you may continue your PSHCP membership without interruption.

If you do not receive an immediate pension, your coverage terminates when your employment terminates. However, if a PSHCP contribution has been taken in the month in which your employment terminates, coverage will continue until the end of the following month. If you later begin to receive an on-going pension under the Public Service pension plan, you may join the PSHCP at that time.

5. When does your Pensioners' Dental Services Plan (PDSP) coverage start?
If you apply within 60 days of your pension entitlement date, your membership will begin on your pension entitlement date. If you apply more than 60 days after your pension entitlement date, your membership will begin on the first day of the second month following the date your pension office receives your completed and signed PDSP form.

Coverage for all dental services begins on the same day as your membership begins. There is no waiting period.