Deferred Annuity
- How your deferred annuity is calculated:
- Your deferred annuity is calculated according to the Pension Formula: Lifetime Pension and Bridge Benefit.
- Protection from inflation:
- A deferred annuity is fully indexed as of the most recent date you leave the public service. Your total pension amount is indexed according to the Consumer Price Index (CPI) as described in Protection from Inflation.
- How your deferred annuity may be affected in case of divorce or separation:
- The pension benefits you have acquired during the course of your marriage or during the period of cohabitation in a conjugal relationship may be divided in the event of a separation or divorce.
- Protection for your survivor and children:
- Your eligible survivor and children may be entitled to survivor benefits as described in Survivor Benefits.
- Retirement Compensation Arrangement:
- The income tax rules limit the pension amount payable under a registered pension plan. Therefore, if your salary exceeds a certain amount ($157,700 in 2015), a portion of your pension will be paid by the Retirement Compensation Arrangement.
- Re-employment:
- It is important to note that re-employment in the federal public service after retirement can have impact on your public service pension benefits.
Visit Public service group insurance benefit plans for information on benefits.
If you become a member on or before :
A deferred annuity is available to most plan members who leave the public service before age 60 and have at least two years of pensionable service.
- Protection in case of disability:
- If you opt for a deferred annuity and suffer from disability after your departure from the public service but before age 60, you must inform the Government of Canada Pension Centre. You could be eligible for an immediate annuity on grounds of disability.
- If you are entitled to a disability pension under the CPP or QPP before you reach age 65, your public service bridge benefit will end immediately. The lifetime pension amount continues to be indexed annually. It is your responsibility to inform the Pension Centre if you start to receive a disability benefit under the CPP or QPP, otherwise you will be required to repay any overpayments.
- Possibility of conversion before age 60:
- A deferred annuity can be converted to an annual allowance at any time between ages 50 and 60.
If you become a member on or after :
A deferred annuity is available to most plan members who leave the public service before age 65 and have at least two years of pensionable service.
- Protection in case of disability:
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If you opt for a deferred annuity and suffer from disability after your departure from the public service but before age 65, you must inform the Government of Canada Pension Centre. You could be eligible for an immediate annuity on grounds of disability.
If you are entitled to a disability pension under the CPP or QPP before you reach age 65, your public service bridge benefit will end immediately. The lifetime pension amount continues to be indexed annually. It is your responsibility to inform the Pension Centre if you start to receive a disability benefit under the CPP or QPP, otherwise you will be required to repay any overpayments.
- Possibility of conversion before age 65:
- A deferred annuity can be converted to an annual allowance at any time between ages 55 and 65.
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