Deferred annuity
Can you retire and choose to receive your pension at a later date?
Watch the video below to find the answer to this question and to learn more about your monthly pension, and how you can use the pension calculator to calculate your deferred annuity.
Transcript of the Deferred annuity
If you leave the federal public service before normal retirement age with at least 2 years of pensionable service, you can choose to defer the payment of your pension until age 60 or 65. Normal retirement age is 60 if you became a member of the public service pension plan on or before December 31, 2012 and it is age 65 if you became a member of the public service pension plan on or after January 1st, 2013. For example, if you joined the plan on or before December 31, 2012 and left the public service at age 40 with 2 years of pensionable service, you could choose a deferred annuity that would become payable at age 60. If you joined the plan on or after January 1st, 2013, the deferred annuity would be payable at age 65.
Even if you choose a deferred annuity, you can change your mind and choose to receive a reduced annual allowance as early as age 50 or 55, depending on when you became a plan member. In other words, you could receive your pension as early as ten years before the normal retirement age but at a reduced rate. For more information on this type of pension please view the Annual Allowance video.
If you become permanently disabled before you reach the normal retirement age, you may become eligible to receive an unreduced annuity that would become payable immediately.
Like other pension benefits, the deferred annuity is fully indexed to the cost of living. The calculation of indexing benefits includes accumulated indexing from the date of leaving employment to the date the deferred annuity commences.
While you will not be entitled to the automatic coverage for Supplementary Death Benefit, you can choose to continue your term life insurance coverage at commercial rates, but time limits, conditions and additional costs apply.
When your deferred annuity becomes payable, if eligible, you may also apply to join the Pensioners' Dental Services Plan and the Public Service Health Care Plan.
If your address changes after your departure from the public service, be sure to inform the Government of Canada Pension Centre.
You can obtain an estimate of your pension benefits from the Pension calculator on Pension and benefits web portal or by contacting the Government of Canada Pension Centre. For more information on the pension benefits payable, we also encourage you to consult the Pension entitlement information package, also found on the web portal.
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View the Deferred annuity video.