What is the public service pension plan

Pension plans are designed to provide employees with a retirement income during their lifetime. In the event of death, the plans also provide an income for survivors and eligible children.

There are three main federal public sector pension plans:

• public service pension plan
• Canadian Forces-Regular Force pension plan; and
• Royal Canadian Mounted Police pension plan

The public service pension plan, which is governed by the Public Service Superannuation Act, is a defined benefit pension plan in which employees of the federal public service may be entitled to participate.

A defined benefit plan is designed to provide a retirement income. In a defined benefit plan, benefits are based on a member's average salary and years of pensionable service, that is, complete or partial years credited to the member at retirement.

To ensure the long-term sustainability of the public service pension plan, several initiatives have been put in place:

• Since 2006, employee contribution rates have gradually increased to reach a more balanced cost-sharing ratio with the Government of Canada. Effective January 1, 2013, a plan to phase in additional employee contribution rate increases for the public service pension plan will result in an employee-employer cost-sharing ratio of 50:50 in 2017.
• For new employees who joined the federal public service pension plan on or after January 1, 2013, the normal age of retirement is raised from 60 to 65. These changes were included in the Jobs and Growth Act, 2012.

The description of the public service pension plan is provided for information purposes only and does not constitute a legal document on plan members' rights and obligations. If there is a discrepancy between the information in this website and that contained in the Public Service Superannuation Act and Regulations, or other applicable laws, the legislation shall prevail at all times.