Immediate Annuity
- How your immediate annuity is calculated:
- Your immediate annuity is calculated according to the Pension Formula: Lifetime Pension and Bridge Benefit.
- Protection from inflation:
- An immediate 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 immediate 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 the Survivor Benefits section.
- 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 an 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 :
You can receive an immediate annuity if you leave the public service at age 60 or over with at least 2 years of pensionable service or at age 55 or over with at least 30 years of pensionable service.
- How your immediate annuity may be affected in case of disability:
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If you are under age 60, have completed two years of pensionable service and retire because of disability, you will receive an immediate annuity. If you later regain your health and can return to work, your immediate annuity will stop and be converted to a deferred annuity payable at age 60. If you then wish to convert the deferred annuity to an annual allowance, you may do so at any time after reaching age 50.
If you are receiving an immediate annuity under the public service pension plan and you become disabled and 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.
If you become a member on or after :
You can receive an immediate annuity if you leave the public service at age 65 or over with at least 2 years of pensionable service or at age 60 or over with at least 30 years of pensionable service.
- How your immediate annuity may be affected in case of disability:
-
If you are under age 65, have completed two years of pensionable service and retire because of disability, you will receive an immediate annuity. If you later regain your health and can return to work, your immediate annuity will stop and be converted to a deferred annuity payable at age 65. If you then wish to convert the deferred annuity to an annual allowance, you may do so at any time after reaching age 55.
If you are receiving an immediate annuity under the public service pension plan and you become disabled and 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.
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