Re-employment after retirement – Retired members - Pension
The following information is intended to help you understand the impact re-employment may have on your pension.
You may want to know…
What happens if you become re-employed in the federal public service after you have retired?
If you are re-employed in a position that does not require you to contribute to the public service pension plan, you can receive both your pension and the salary from your new position. For more information about the public service pension plan, consult Re-employment.
However, if you choose to become re-employed in the public service and begin contributing to the pension plan, your monthly pension (including indexing) will cease, as you are unable to receive a pension under the public service pension plan and accumulate public service pension plan service simultaneously. Your monthly pension will only be reactivated once you stop contributing to the public service pension plan, and will most likely be recalculated based on your combined pension credits (those accumulated during both your initial period of employment and your re-employment period). The indexing amount payable will be based on your most recent date of retirement. Additional information can be found by consulting the Re-employment section in Benefits for Retired Members and the Effects of Re-employment on Indexing Benefits.
What happens if you are re-employed in the public service after a transfer value has been paid to you?
If you become re-employed in the public service and are contributing to the public service pension plan, you can elect to purchase the pensionable service for which you received a transfer value benefit. Note that this option is available on a one-time basis only and a one-year deadline applies.
However, plan members who opted for a transfer value before and became re-employed in the public service on or after would not remain covered under the pre-2013 pension plan terms. For more information, visit Re-employment.
Visit Public service group insurance benefit plans for information on benefits.
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