Pension options under workforce adjustment

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(Text on screen: Public Services and Procurement Canada)

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(Text on screen: Presented by - The Government of Canada Pension Centre. Valid until December 31, 2026. Pension Options Under Workforce Adjustment)

In this video, we'll review what happens to your pension when your employment ends through a workforce adjustment process. Our goal is to help you better understand your pension entitlements. Let’s get started.

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(Text on screen: Less than 2 years of pensionable service. Return of your contributions only (including interest))

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(Text on screen: Direct Payment. After taxes are deducted. Transfer into RRSP.)

If you leave the public service with less than two years of pensionable service, you are entitled only to a return of your contributions you paid into the pension plan as a one-time lump sum payment with interest. You can choose to have this amount paid directly to you (after taxes are deducted), or you can transfer the full amount to your RRSP.

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(Text on screen: Service Buyback. Eligible time. PS - Public Service, RCMP - Royal Canadian Mounted Police, CAF - Canadian Armed Forces, Other - Outside Employers)

A service buyback may give you additional pension options if it increases your total pensionable service to over two years. You can buy back eligible time from the Public Service, RCMP, Canadian Armed Forces, and some outside employers with pension plans, excluding group RRSPs. Buybacks must be completed before you leave, contact the Pension Centre to confirm eligibility. 

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(Text on screen: Public Service Pension Plan)

(Text on screen: Group 1. Before January 1^st, 2013. Group 2. On or after January 1^st, 2013)

There are two groups in the public service pension plan:

Group 1: Those who started contributing to the pension plan before January 1, 2013. 

Group 2: Those who started contributing on or after January 1, 2013.  

Your pension options depend on when you started contributing, not necessarily when you were hired. 

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(Text on screen: Pension Options, 2 or more years of pensionable service)

(Text on screen: Transfer Value. One-time payment of your pension value. A portion must be transferred into a registered retirement account (LIRA, LRSP))

(Text on screen: No longer offered at age 50 for Group 1 or at age 55 for Group 2. Forfeit any future insurance benefits)

If you have two or more years of pensionable service, these are the options that could be available to you: 

Transfer Value: This one-time payment allows you to receive the value of what your pension would be worth at retirement. It is important to note a portion of the lump sum is locked in, meaning that the amount must be transferred into a registered retirement account (LIRA, LRSP). Once you reach age 50 for Group 1, or age 55 for Group 2, the transfer value option is no longer offered. By choosing this option, you forfeit all future monthly pension payments and insurance benefits. 

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(Text on screen: Annual Allowance, Reduced monthly pension payable for life)

(Text on screen: Available beginning at: Age 50 for Group 1, Age 55 for Group 2, Reduce based on your age and years of service. Includes insurance benefits)

Annual Allowance, sometimes called an early pension: This is a reduced monthly pension payable for life. The earliest you can start receiving the annual allowance is age 50 for Group 1 and age 55 for Group 2. With this option, your pension would be reduced based on your age and years of service. Contact the Pension Centre or use My GC Pension for pension estimates. You may also qualify for insurance benefits depending on your situation. The Pension Centre can confirm your insurance eligibility. 

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(Text on screen: Deferred Annuity. Defer your pension until the normal retirement age: For Group 1, age 60. For Group 2, age 65. Includes insurance benefits)

Deferred Annuity, also known as the deferred pension: If you prefer not to receive a reduced pension, you can defer your pension until the normal retirement age. For Group 1 this is age 60 and for Group 2, age 65. Once you start receiving your monthly pension, you may qualify for insurance benefits depending on your situation. The Pension Centre can confirm your eligibility. 

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(Text on screen: Immediate Annuity. Unreduced pension payable for life. Group 1: Age 55 with at least 30 years of pensionable service, Age 60 with at least 2 years of pensionable service. Group 2: Age 60 with at least 30 years of pensionable service, Age 65 with at least 2 years of pensionable service. Includes insurance benefits.)

You are entitled to an immediate annuity, which is an unreduced pension payable for life including insurance benefits, if you meet the following eligibility requirements: 

For Group 1, this means reaching age 55 with at least 30 years of pensionable service, or age 60 with at least 2 years. For Group 2, eligibility is reached at age 60 with at least 30 years of pensionable service, or age 65 with at least 2 years. You may qualify for insurance benefits depending on your situation. The Pension Centre can confirm your eligibility.

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(Text on screen: Workforce Adjustment. Pension Reduction Waiver. Involuntary termination, Indeterminate employee, Employed in the public service for at least 10 years (cumulative), Age 55 for Group 1, Age 60 for Group 2, 2 or more years of pensionable service. Deputy Head or delegated authority confirms eligibility by completing the Pension Reduction Waiver form PWGSC-2429)

If your employment is terminated due to workforce adjustment, you may be eligible to have the pension reductio waived if termination was involuntary, you are an indeterminate employee, you have been employed in the public service for a period or for periods totaling at least 10 years, you are at least 55 years old for Group 1, you are at least 60 years old for Group 2, you have two or more years of pensionable service.

The Deputy Head or delegated authority must confirm eligibility by completing the Pension Reduction Waiver form (PWGSC-2429). 

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(Text on screen: Government of Canada, Pension Centre. Monday to Friday. 7 am to 5 pm (Eastern time). Toll free: 1-800-561-7930)

(Text on screen: canada.ca/pension-benefits)

If you have questions or need help understanding your pension or getting a pension estimate, the Government of Canada Pension Centre is here to assist you. Monday to Friday, 7 am to 5 pm (Eastern time). Call Toll free: 1-800-561-7930. Visit our website at canada.ca/pension-benefits for more information and resources such as: My GC Pension, a basic pension calculator, and videos and forms.

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(Text on screen: ISBN: 978-0-660-98762-0, Catalogue: P4-186/2026E-MP4)

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