Terminating employment - Pension

You may want to know…

• Can you increase your pensionable service prior to terminating employment?

  Yes, if you have eligible periods of prior service you may be able to buy back this service or transfer it from another plan to increase your pension. Any service buyback or request to transfer credits under a Pension Transfer Agreement have to be made before you terminate employment. Depending on the type of service, there are various conditions that must be met. There are also impacts to consider, such as income tax implications. Additional information can be found in Pensionable Service.

• What happens if you have not finished paying your pension contributions for your existing service buyback or your period of leave without pay when you terminate employment?

  If you have an existing service buyback that is not fully paid, you will have to continue making payments after you leave. For more information, refer to the Service Buyback Package.

  Any pension and Supplementary Death Benefit contributions still owing for a period of leave without pay have to be paid when you terminate employment. Information on payment options for these contributions can be found in the Pension Entitlement Information Packages - Two or More Years of Pensionable Service.

• What are your pension options upon leaving the public service?

  Your options vary depending on your years of service, your age when you cease to be employed and your reason for leaving.

  If you have at least 2 years of pensionable service, you may be entitled to the following options:

  • Transfer value
  • Deferred annuity
  • Annual allowance
  • Immediate annuity

  If you have less than 2 years of pensionable service, generally, you are only eligible for:

  • Return of contributions

  Note: If you leave the public service and have chosen one of the following pension benefit options: a return of contributions, a transfer value payment or transferred your accrued pension credits to another pension plan, you will be covered under the post-2013 pension plan rules if you are re-employed as a plan member on or after January 1, 2013. For more information, refer to Re-employment.

  If you have Operational Service with Correctional Service Canada, you may be entitled to different pension options and should contact the Government of Canada Pension Centre (Pension Centre).

  More detailed information on the termination of employment process and the required forms can be found in the Pension Entitlement Information Packages.

• What are your options if you accept an employment opportunity outside of the federal public service?

  If you become employed outside of the federal public service, you may be eligible to transfer all or part of your accrued pensionable service to another pension plan through a Pension Transfer Agreement regardless of the number of years of pensionable service that you have to your credit. Additional information can be found by consulting the Pension Portability Package.

• What are your options if you accept an employment opportunity with the Canadian Forces or the Royal Canadian Mounted Police?

  If you become employed with the Canadian Forces or the Royal Canadian Mounted Police you may be eligible to transfer your accrued pensionable service from the public service pension plan to their pension plan. Additional information can be found by consulting the Service Buyback Package.

• How do you determine the value of your pension options?

  Begin by looking at your most recent personal Pension and Insurance Benefits Statement, as it provides you with a summary of your entitlements and their approximate value. The Compensation Web Applications (CWA) can also help you estimate your yearly and monthly pension based on the information you enter.

• How do you choose a pension benefit option?

  As a first step, refer to your most recent Pension and Insurance Benefits Statement to review your current pension entitlements, or if you have access to the Compensation Web Applications, use the pension tools to estimate a future pension benefit.

  When you have chosen a termination date, contact the Government of Canada Pension Centre and you will be provided with a personalized Pension Benefit Options Statement outlining your pension choices. To make your option, you must complete the Pension Benefit Options Statement and return it to the Pension Centre.

  More detailed information on the termination of employment process and required forms can be found in the Pension Entitlement Information Packages.

• Once you have chosen your termination date who should you notify?

  Once you have chosen your retirement date, you must first submit your resignation letter to your manager for approval.  The accepted resignation letter should then be sent to the Public Service Pay Centre or your departmental compensation services, as well as the Government of Canada Pension Centre. This should be done at least 3 months in advance of your retirement date.