Treasury Board of Canada Secretariat
www.tbs-sct.gc.ca
Weighing Your Options
Pension Transfer
When to ask for a pension transfer: A request for a pension transfer under a Pension Transfer Agreement (PTA) between an employer and the Government of Canada may be made only within the timelines set out in the existing PTA.
Who has a Pension Transfer Agreement (PTA): A pension transfer agreement is an agreement that the federal government may enter into with employers who meet certain criteria established by the Public Service Superannuation Act.
- Employers who have a PTA: Consult appendix B of Your Pension Plan booklet to see the current list of employers with whom the Government of Canada has already entered into a PTA.
- Employers who don't have a PTA: If your new or prospective employer has not already entered into a PTA with the Government of Canada, but is interested in doing so, then that employer may submit a request to the Policy and Advisory Services Division of the Public Service Pension Centre. Please note that this process may take some time and that you have only one year following your departure from the Public Service to choose a Transfer Value.
What to transfer: The purpose of a PTA is to transfer the actuarial value (in current dollars) of your accrued pension credits and related pensionable service from one pension plan to another. The formula for calculating this amount is described in each individual PTA.
- Pension amounts payable under the Retirement Compensation Arrangement (RCA): When you opt for a pension transfer, you approve the transfer of not only your accrued pension credits under the public service pension plan, but also those amounts payable under the RCA, if applicable. Most employers outside of the public service do not have an RCA. As such, if a transfer of the RCA portion to an outside RCA is not possible, then that portion is paid directly to you and is taxed at source.
Comparing pension plans: You should examine the provisions and benefits of your new employer’s plan and compare them to those of the public service pension plan to determine if it is in your best interest to transfer your pension credits, rather than opting for a deferred annuity, for example. Factors, such as health and dental care, should be carefully examined. The public service pension plan is a defined benefit plan, which in this case, means that your pension benefits are set and paid based on the provisions of the Public Service Superannuation Act. For a general description of your pension plan, see Getting to Know your Pension Plan.
