Answer key to the knowledge questions – 2009 Public Service Pension Plan Survey
These are the answers to the questions #9 - 22 contained in the Public Service pension plan survey (the remaining questions were opinion questions).
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Q9.The table below presents a set of statements about the Public Service pension plan. To the best of your ability, please indicate whether you think each statement is True or False.
Question Answer The amount of pension to which you will be entitled depends on the amount that you contributed and the investment returns.
False
Your pension amount will increase annually (i.e. is indexed) to reflect the general increase in the consumer price index (CPI).
True
The entitlement to an unreduced pension is always based on the sum of your age and the number of years of pensionable service being equal to 85.
False
When you retire, (or leave the Public Service), your pension amount will be calculated based on your years of pensionable service and your average salary for the five consecutive years of highest paid service.
True
You may be able to increase your pension benefits by "buying back" eligible prior service from another employer.
True
If you choose to leave the Public Service, you may be able to transfer the value of your pension benefits to another employer's plan through a pension transfer agreement.
True
Your contributions under the Public Service pension plan are deducted at two rates: earnings up to and earnings over the maximum set by the CPP or QPP.
True
In case of disability, you may receive an unreduced pension if you retire after at least two years of pensionable service.
True
If you retire with at least two years of pensionable service but you do not have yet attained age 55 with at least 30 years of pensionable service, you may receive an unreduced pension (deferred annuity) at age 60.
True
Upon reaching age 65, your pension benefits are reduced due to the coordination of benefits with the CPP or QPP.
True
If you have less than 25 years of pensionable service and choose a reduced pension (annual allowance), your pension will be reduced by five per cent for every year that you are younger than age 60.
True
If you marry after you retire, your spouse will automatically receive your pension benefits.
False
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Q10. What portion of the cost of the pension does the Government of Canada, as the employer, contribute in order to respect its pension benefit obligations?
A10: More than employees
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Q11. The basic formula used to calculate the plan member's pension is 2% multiplied by the number of years of pensionable service multiplied by the…
A11: Average salary for 5 consecutive years of highest-paid service
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Q12. A plan member can receive an unreduced pension upon retirement when the plan member retires…?
A12: At age 60 with at least two years of pensionable service or at age 55 with at least 30 years of pensionable service
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Q13. The maximum number of years a plan member can contribute to the Public Service pension plan is…?
A13: 35 years
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Q14. A transfer value represents the value of a plan member's pension, and plan members leaving the Public Service may choose to transfer that amount to another registered pension plan. To be eligible for a transfer value, which of the following conditions must be met?
A14: Before age 50 with at least two years of pensionable service
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Q15. If a plan member becomes disabled and is entitled to receive Canada Pension Plan or Quebec Pension Plan Disability Benefits, his/her Public Service pension is reduced immediately.
A15: Yes
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Q16. If a plan member leaves the Public Service, he/she is entitled to a reimbursement of pension plan contributions (return of contributions) only if he/she has accumulated less than…?
A16: Two years of pensionable service
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Q17. Upon retirement, a plan member can choose to receive a reduced pension, only when he/she retires…?
A17: At age 50 with at least two years of pensionable service
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Q18. If a plan member chooses a reduced pension, the reduction to his or her pension is…?
A18: Permanent
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Q19. The Supplementary Death Benefit provides a form of decreasing life insurance protection designed to cover the plan member and his or her beneficiary. This protection is equal to…?
A19: Two times the plan member's annual salary
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Q20. A plan member's monthly contribution for the Supplementary Death Benefit amounts to…?
A20: $0.15 for each $1,000 of coverage
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Q21. Leslie died at 55 years of age with an entitlement to an unreduced pension of $26,000 per year. Leslie's spouse will receive a survivor benefit equal to…?
A21: 50% of his unreduced basic pension
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Q22. Leslie died at 55 years of age with an entitlement to an unreduced basic pension of $26,000 per year. Leslie's spouse is entitled to a survivor benefit and his one eligible surviving child will receive a child's allowance equal to…?
A22: 10% of his unreduced basic pension
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