What benefits do I receive at retirement or release?
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
With less than two years of pensionable service:
You receive:
- a return of your contributions with interest
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
With two or more years of pensionable service:
You are entitled to …
- If you …
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
an immediate annuity
- have 25 years of CF service (9,131 days);
- officers may have to meet different criteria;
- are age 60;
- are age 55 with 30 years of pensionable service; or
- are released for workforce reduction and have 20 years of pensionable service or are age 55 or older with 10 years of pensionable service
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
an annual allowance
- are age 50 or older;
- have two or more years of pensionable service; and
- stop participating before being eligible for an immediate annuity
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
a deferred annuity
- have two or more years of pensionable service; and
- stop participating before being eligible for an immediate annuity
===========================================================================================================
* Instead of this deferred annuity, payable at age 60, you can choose:
- an annual allowance anytime after age 50; or
- IF YOU ARE YOUNGER THAN AGE 50, a transfer of the value of your deferred annuity to a locked-in RRSP, an insurance company to purchase an annuity, or another registered pension plan
===========================================================================================================
Reduction
The reduction applied to the annual allowance is calculated according to age and/or service.
Formula 1
(applies to contributors between 50 and 60 years of age with less than 25 years of pensionable service)
Reduction of 5% for every year you are under age 60
Formula 2
(applies to contributors between 50 and 60 years of age with at least 25 years of pensionable service)
The amount of the annual allowance is the greater of the amount determined by formula 1, or the highest of the following two percentages
- 55 minus your age; and
- 30 minus your pensionable service
Example
Release at age 50 with 30 years pensionable service.
Formula 1
60-50=10 * 5% = 50%
Formula 2
55-50=5 * 5% = 25%
30-30=0
25% is higher
A 25% reduction under Formula 2 provides a higher annual allowance than under formula 1 which has a 50% reduction therefore the members reduction would be calculated using formula 2.
Grandfathered benefits have different reductions.
Transitional provision
Instead of a deferred annuity, you can receive a refund of contributions with interest, if you:
- were a Regular Force contributor on 28 February 2007;
- release within two years of 1 March 2007; and
- are not entitled to an immediate annuity.
