Public Service Pension Plan
The Public Service Pension Plan, governed by the Public Service Superannuation Act (PSSA), is designed to provide employees with a retirement income payable during their lifetime. In the event of their death, the plan also provides benefits to eligible survivors and children. Pension benefits are based on salary, pensionable service, age and reason for termination. Full-time or part-time employees (minimum of 12 hours per week) are covered by the pension benefit provisions under the plan:
- from first day at work, if appointed on an indeterminate basis;
- from first day at work, if hired for a period of more than six (6) months; or
- after six (6) months of continuous employment, if originally hired for a period of six (6) months or less.
Participation in the pension plan is mandatory and contributions are made by both employee and employer up to 35 years of pensionable service . Refer to Public service pension at a glance for annual employee contribution rates. After 35 years of pensionable service, the annual contribution rate drops to 1% of an employee's salary for the remainder of their service. The date an employee becomes a member of the pension plan determines their eligibility date to receive unreduced pension benefits.
You may be eligible to increase your pensionable service by purchasing contributions for a period of prior service, by reinstating transfer value service or by requesting a pension transfer agreement.
Pension Buy back
A pension service buyback (also known as elective service) is a legally binding agreement to purchase a period of prior service to increase your pensionable service under the public service pension plan.
Important: A service buyback is a legal binding agreement and you should therefore review the information contained in the Service Buyback Package before you decide to purchase contributions for prior service. If you are considering making a service buyback, please note that it must be made while you are employed in the federal public service and an active member of the pension plan.
Note: A service buyback differs from a repayment of pension deficiencies owed for a period of leave without pay (LWOP). For more information on this topic, refer to the Leave Without Pay Information Package.
The Pension Centre is the primary office responsible for the administration of the pension plan for Federal Public Service Employees. All general pension enquiries and estimates should be directed to the Centre.