Typically, when you leave a job with a defined benefit pension, you have a few options. You can choose to take the money as a lump sum now, or take the promise of regular payments in the future, also known as an annuity. You may even be able to get a combination of both.
What happens when you opt out of pension?
You can leave (called ‘opting out’) if you want to. If you opt out within a month of your employer adding you to the scheme, you’ll get back any money you’ve already paid in. You may not be able to get your payments refunded if you opt out later – they’ll usually stay in your pension until you retire.
When do you get a pension from the public service?
The benefits you will be entitled to when you leave the public service depend on your age and the number of years of pensionable service you have accumulated. You may be eligible to receive a public service pension benefit after you have been a member of the pension plan (have pensionable service) for an uninterrupted period of two years.
What happens to your pension after two years of service?
More information on these pension benefit options can be found on the Pensions section of the Treasury Board of Canada Secretariat website. If you terminate your employment with less than two years of pensionable service, a return of contributions is your only pension benefit entitlement under the public service pension plan.
What happens when you leave the Federal Public Service?
Upon leaving the federal public service, the Government of Canada Pension Centrewill require certain documents and forms from you to start the termination process to determine your pension entitlement. You must also remember to notify your employer of your intention of leaving as there may be other termination payments payable to you.
What happens to your pension if you leave the federal government?
Explore these links to see what pension benefits may be available to you upon termination: Upon leaving the federal public service, the Government of Canada Pension Centre will require certain documents and forms from you to start the termination process to determine your pension entitlement.
