Age at which new employees who become plan members on or after January 1, 2013 are eligible for a pension benefit
Budget 2012 announced the federal government’s intention to change the age at which future public service pension plan members would be eligible for a pension benefit.
The Public Service Superannuation Act has been amended, and if enacted in Parliament, new employees who become plan members on or after , may be eligible to retire with an unreduced pension benefit from the public service pension plan at age 65.
Generally, the change in the age of retirement does not affect plan members who were participating in the public service pension plan on or before , and most plan members will continue to be able to retire under the pre-2013 plan terms (eligible to retire with an unreduced pension at age 60 with at least two years of service or at age 55 with at least 30 years of service).
Age thresholds for new employees who become plan members on or after
The table below describes the ages at which pension benefits are available for new employees who become plan members on or after .
| If you are the following age when you leave the public service | And leave the public service with the following years of pensionable service | You would be entitled to these benefits |
|---|---|---|
| Age 65 or over | At least 2 years | An immediate annuity: your accrued pension calculated according to the pension formula, payable immediately |
| Age 60 or over | At least 30 years | An immediate annuity |
| Age 55 to 64 | At least 2 years | A deferred annuity: your accrued pension calculated according to the pension formula, payable at age 65 or An annual allowance is a permanently reduced pension, payable as early as age 55 |
| Under age 55 | At least 2 years | A deferred annuity payable at age 65 or An annual allowance is a permanently reduced pension, payable as early as age 55 or A transfer value: the value of your pension benefits, payable in a lump sum. This amount must be transferred to another registered pension plan or to a locked-in retirement savings vehicle |
| Any age | Less than 2 years | The return of contributions with interest |
Re-employment in the federal public service
Plan members who retire before , who do not opt to transfer their pension out of the public service pension plan, and are eligible to receive a pension benefit will continue to be covered under the pre-2013 pension plan terms if they become re-employed in the federal public service on or after .
However, in the following three cases, plan members who were participating in the public service pension plan before , will not remain covered under the pre-2013 pension plan terms when re-employed in the federal public service. Plan members who leave the public service:
- with less than two years of pensionable service with a return of contributions and become re-employed with the public service on or after ; or
- opt for a transfer value, and become re-employed with the public service on or after January 1, 2013; or
- opt to transfer the pension accumulated under the public service pension plan to a new employer’s pension plan under general portability rules or a Pension Transfer Agreement and then become re-employed with the public service on or after .
More information about public service pension benefit options is available on the Treasury Board of Canada Secretariat Pension Web site.
More information about the public service pension plan is available on Your Public Service Pension and Benefits Web Portal.
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