Reminder: Public sector pension plan changes come into effect on January 1, 2013
On December 14, 2012, Bill C-45, the Jobs and Growth Act, 2012 was enacted in Parliament. Bill C-45 enables the following pension changes to be implemented, effective :
- Increasing employee contribution rates for the public service pension plan to reach an employer:employee cost-sharing ratio of 50:50. These increases in contribution rates for employees will be done gradually over time. Comparable increases will be applied to the contribution rates for Regular Force members of the Canadian Forces pension plan (Part 1) and the Royal Canadian Mounted Police pension plan.
- Changing the age of eligibility for an unreduced pension benefit from age 60 to age 65 for new employees who begin to participate in the public service pension plan on or after .
The Frequently Asked Questions – Changes to the Public Sector Pension Plans document provides general information about the pension changes and explains the increase in contribution rates and the age related changes.
In addition, information about the amendments to the public sector pension plans has previously been distributed through a series of information notices, which are available on the Information Notices – Pensions section of the Treasury Board of Canada Secretariat Web site.
For reference, the information notices below explain plan member contribution rates:
- Information notice – Contribution rates for the public service pension plan
- Information notice – Contribution rates for members of the public service pension plan who are employed in operational service with Correctional Service of Canada
- Information notice – Contribution rates for Regular Force members of the Canadian Forces pension plan and the Royal Canadian Mounted Police pension plan
The following information notice explains the change in age of eligibility for an unreduced pension benefit:
For more information about the public service pension plan, please visit the Your Public Service Pension and Benefits Web Portal.