A PTA permits you to increase your pension assets by transferring an amount equivalent to the actuarial value of the benefits earned in respect of your pensionable service credits under your former employer's pension plan to your new employer's pension plan.
When you cease to be employed by one employer and become employed and a participant to the pension plan of your current employer you may be eligible to transfer your pensionable service credit to your new pension plan. A PTA is one method to accomplish such a transfer. In order to participate in such an arrangement, a PTA must have been signed between the Government of Canada and an outside employer. Agreements are negotiated on behalf of the Government of Canada by the Policy and Advisory Services Division of the Government of Canada Pension Centre.
At this moment, the federal government has pension transfer agreements with over 90 other pension plans in Canada and more are currently under negotiation.
Any employer wishing to initiate negotiations must write to the Policy and Advisory Services Division of the Pension Centre confirming that:
The address for the Pension Centre is:
Public Works and Government Services Canada
Government of Canada Pension Centre
Policy and Advisory Services Division
PO Box 5155
Shediac NB E4P 8T9
It should be noted that no action will be taken by the Pension Centre unless a request to negotiate a PTA is received directly from your former employer.