Re-employment after retirement
After retirement, can I come back to work for the government and continue receiving my pension?
Watch this video to find the answer to this question and to learn more about how reemployment in the public service as a contributor may affect your pension in three different ways: pension suspension, pension recalculation after subsequent retirement, or loss of pension indexing.
Transcript of the Re-employment after retirement
If you become re-employed in the federal government, you may continue to receive your public service pension while receiving a salary. Your pension will not be affected, as long as you do not become an active plan member of the pension plan. However, if you accept a term employment of more than 6 months, an indeterminate position, or if your employment extends over 6 months, you would then become an active member of the pension plan and your monthly pension payments would be suspended.
Your indexing would stop accumulating and when you leave the government the second time, the indexing would be calculated from your new termination date and you would lose any indexing accumulated previously.
If you were receiving an annual allowance before becoming an active plan member, when you terminate employment again, your pension would be further reduced to take into account the time you have received the annual allowance. If you had qualified for a waiver of that early retirement reduction, you would not be entitled to a waiver of the reduction again unless you qualify once more at the time you terminate employment.
You would no longer be a participant to the Public Service Health Care Plan as a retired member but as an employee. As well, your coverage under the Pensioners' Dental Services Plan would cease since you would be a participant to the Public Service Dental Care Plan offered to employees.
Changes were made to the public service pension plan for employees who became plan members on or after January 1, 2013. Your pension benefit entitlement under the pension plan when you left the public service will determine whether you fall under the pre-2013 plan terms or the post-2013 plan terms when you become re-employed as an active member.
Generally, plan members who are entitled to receive an immediate annuity, deferred annuity or an annual allowance under the pre-2013 plan terms who become re-employed in the federal public service on or after January 1, 2013, will continue to be covered under the pre-2013 plan terms. For example, when terminating employment again, the plan member would be eligible to receive an unreduced pension at age 60, with at least two years of pensionable service, or at age 55 with 30 years of pensionable service.
However, there are three situations where a plan member who becomes re-employed in the federal public service will be covered under the post-2013 plan terms. This would apply to any plan members who left the public service and become re-employed in the public service on or after January 1, 2013:
- with less than two years of pensionable service and has received a return of contribution; or
- has received a transfer value; or
- has transferred pensionable service accumulated under the public service pension plan to a new employer's pension plan under general portability rules or a Pension Transfer Agreement.
There are other consequences to becoming an active plan member of the public service pension plan while you are receiving a pension. You should contact the Government of Canada Pension Centre before accepting employment in the federal public service.
You can also visit the Pension and benefits web portal to learn more about how your pension may be affected by re-employment.
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