Your Pension and Benefits Liaison: Information for retired members of the federal public service pension plan, issue 15

Issue 15: 2021

How retroactive salary changes affect pension payments

If your collective agreement is renewed after you’ve retired, it may result in a retroactive change to your salary. If your salary is updated:

• The Government of Canada Pension Centre (Pension Centre) will recalculate your pension to reflect any change to your highest average salary.
• You may receive retroactive payments for the corresponding period.

Rest assured, the Pension Centre is working diligently to manually review your account and ensure any retroactive pension payments are issued.

For more information on revised pension payments, visit the Newly retired page on Canada.ca/pension‑benefits.

Indexation

The indexation rate is adjusted annually based on the amount calculated in the Consumer Price Index, which considers the increase in the cost of living, and is applied to your public service pension to ensure that you can keep up with life’s necessities. The 1.0% indexation rate for 2021 was applied to your pension in January 2021. If you retired the preceding year, your increase will be a prorated amount based on the number of months you were retired in that calendar year.

The indexation rate applied to your Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) is different than the one applied to your public service pension plan. Consult the CPP or QPP website for more details.

For more information on the public service pension plan indexation rate, including how it’s calculated, visit the Indexing rate page.

COVID 19 temporary measures

The temporary Public Service Health Care Plan (PSHCP) and Pensioners’ Dental Services Plan (PDSP) measures implemented in response to the COVID‑19 pandemic are still in effect.

The PSHCP flexibilities include a temporary change to the accepted mental health practitioners you can visit. Psychological services are reimbursed at 80% for a maximum of $2,000 per calendar year. Engaging in an open dialogue about our emotional well‑being can help improve and maintain mental health during these challenging times.

The PDSP flexibilities include a temporary extension of dependant children’s eligibility for receiving required dental services or treatments. For a dependant to be eligible for the temporary extension, you must complete and submit a paper claim form to Sun Life. Consult the Information notice to see what additional information is required with your paper claim form.

Reminder: Common-law documentation

Upon your death, to ease the process of your common‑law partner receiving survivor benefits, be sure to collect documents throughout your relationship as proof that a conjugal relationship was established. For example:

• proof of shared residency prior to retirement, between your retirement and date of death, and at date of death,
• Supplementary Death Benefit applications declaring your relationship in the Relationship field of the benefit designation, if you have designated your common‑law partner as your beneficiary,
• proof that your common‑law partner is your dependant under the Public Service Health Care Plan,
• a joint lease or mortgage agreement, or
• joint utility bills.

To learn more about common‑law relationships and survivor benefits, visit the Retired members page on Canada.ca/pension‑benefits.

Your bridge benefit

Your public service pension plan is coordinated with the Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) to help provide you with a stable retirement income. If you retire before age 65, your public service pension plan includes a temporary bridge benefit that is added to your public service pension and is paid until you reach age 65, at which point you are eligible to receive your unreduced CPP/QPP benefit. Your bridge benefit will not be impacted if you apply for an early (reduced) CPP/QPP benefit before age 65 or delay your CPP/QPP benefit past age 65. The bridge benefit ends at age 65, or prior to age 65 only if you become entitled to CPP/QPP disability benefits.

To learn more about the bridge benefit, visit the Newly retired page on Canada.ca/pension‑benefits.

Online services and information

General information about your public service pension and group insurance benefit plans is available on Canada.ca/pension‑benefits. Choose either Public service pension plan or Public service group insurance benefits plans for general information and the latest news. You’ll find:

• enrollment information
• coverage information
• plan booklets
• contribution rates
• relevant forms
• contact information

Your Public Service Compensation Email Notification System

The Public Service Pension and Benefits Email Notification System is now the Public Service Compensation Email Notification System.

The Public Service Compensation Email Notification System provides you with direct and timely general information on your public service pay, pension and benefits.

You can subscribe using the email address of your choice and select the topics you want to receive updates on. The decision to subscribe or not subscribe will not affect your pension or benefits or any personal information you may receive from the Pension Centre.

Subscribe now by visiting Canada.ca/pension‑benefits.

Update: epost

Canada Post will officially cease their epost service as of December 31, 2022. This will affect the way you receive your personalized pension information electronically. We are currently working on an alternative online solution and will provide details as soon as possible.

Direct deposit

If you haven’t already enrolled in direct deposit for your pension payment, we encourage you to do so by calling or sending a written request along with a void cheque to the Pension Centre. Direct deposit is a fast, convenient and secure way to receive your pension payments. You can also enrol in direct deposit with Sun Life for your eligible reimbursements under the PSHCP and PDSP.

Both plans are administered by Sun Life but require separate forms.

Update: British Columbia health coverage

As of January 1, 2020, the Province of British Columbia (BC) eliminated the Medical Services Plan (MSP) premiums for BC residents who work for the federal public service. This means the Pension Centre no longer deducts MSP premiums from your pension to remit to the Province of BC.

The elimination of MSP premiums doesn’t impact your medical coverage with BC; however, the Pension Centre no longer manages your MSP coverage on your behalf.

You must contact Health Insurance BC (HIBC) and provide your current address to maintain your current MSP account. To update your address:

• visit Address Change BC or
• contact HIBC at 604‑683‑7151 (Lower Mainland) or 1‑800‑663‑7100 (elsewhere in BC, toll‑free)

If you have any questions about your MSP coverage, visit BC Medical Services Plan or contact HIBC. 

Join the National Association of Federal Retirees

This article is brought to you by the National Association of Federal Retirees. The information expressed is solely that of the Association and does not necessarily reflect the official policy or position of the Government of Canada.

What do 170,000 Canadians from coast to coast to coast have in common? They are all members of the National Association of Federal Retirees (Federal Retirees).

Federal Retirees is an advocacy organization consisting of retired and active members of the federal public service, Canadian Armed Forces, Royal Canadian Mounted Police, and federally appointed judges. Anyone who is eligible to collect a federal pension from these organizations, along with their partners and survivors, is eligible for membership. You don’t have to be retired to join.

With a solid 58‑year tradition of strong and smart campaigns advocating for their members’ pensions and benefits, Federal Retirees works to support good policy that improves the lives of all Canadians in retirement. Membership also offers important savings through our partners, including travel insurance at members‑only rates.

Join today by going to the National Association of Federal Retirees website or call toll‑free at 1‑855‑304‑4700 (in Ottawa at 613‑745‑2559).

Federal Retirees looks forward to serving you.

Keep us informed

The Pension Centre receives thousands of returned letters each year due to outdated member addresses. It is important to notify the Pension Centre as soon as there are changes to the following:

• your mailing address (even if you are enrolled in direct deposit)
• your email address
• your banking information
• your marital status (married, common‑law, widowed, separated, divorced or single)
• your child(ren)’s status (when your child reaches age 21 if not enrolled in full‑time post‑secondary or when your child reaches 25 if enrolled)
• the mailing address of your designated beneficiary
• the name and mailing address of a person to contact in the event of incapacity

Note! If you update your information for your Canada Pension Plan, Old Age Security or Quebec Pension Plan, you must also contact the Pension Centre to inform them of any changes.

Contact information for the Government of Canada Pension Centre

When communicating with the Pension Centre, it’s important that you always provide your:

• pension number
• surname, first name, and initials
• address (with postal code)
• telephone number (with area code)

For more information, visit Canada.ca/pension-benefits.

Note

Some federal agencies, Crown corporations and territorial governments do not participate in the public service group benefit plans. Even if your former employer did not participate in all public service group insurance benefit plans, as a retired member you may be eligible to join these plans. To find out if you are eligible, call the Pension Centre.