Leaving the Plan
(age 55 or older with at least 85 points or age 65)
When you leave the Plan, you stop participating in the Public Service Pension Plan (PSPP). Because
pension benefits may be a major source of income at retirement, carefully consider the choice you are
about to make.
Because you are age 55 or older with at least 85 points, or are age 65, you are entitled to a pension.
You must decide now whether you want to begin your pension or delay it for a period of time. Decide
which option is best for you based on your situation as well as your short- and long-term financial goals.
This information package explains the options.
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Immediate pension; or
Postponed pension.
Your options
Postponed Pension
Immediate pension
You may leave your pensionable service and
contributions with PSPP for a future pension. You
must begin payment of your pension by the end of
the year in which you turn 71.
You receive a monthly pension benefit based on
your highest average salary (of up to five years)
and your pensionable service.
Your pension will be paid for your lifetime.
Depending on your pension choice, the pension
may be paid for your lifetime and that of the
person you select as your nominee (usually your
pension partner).
When you apply for your pension, you must
supply proof of your age, marital status, pension
partner’s age and any name changes. See your
employer or Alberta Pensions Services
Corporation (APS), PSPP’s pension administrator,
for a Retirement Application form, and for more
information.
A postponed pension is calculated in the same
way as an immediate pension. In general, a
postponed pension is increased by cost-of-living
adjustments granted between the date you left
employment and the date your pension begins.
If you are 65 when you begin your pension, the
amount to be paid to you for all your service will
be increased because you are starting it later. This
is called an Actuarial Upgrade.
Income tax rules do not permit Actuarial
Upgrades on service after 1991 for members who
are under 65 when they begin their pension.
Important notice for higher wage earners
Federal income tax rules restrict the annual amount accrued for pension to $2,494.44 per year for
post-1991 service. Cost-of-living adjustments can be added to your pension as long as the pension
accrued for a year of post-1991 service, plus the COLA, doesn’t exceed the $2,494.44 pension
accrual. This will likely only affect you if you are higher wage earner, (for example, earning in
excess of $138,882 per year).
Information Sheet
803LA Package D
November 2010
However, if your age and service add up to at
least 85, your pension on service before 1992 will
be increased by an Actuarial Upgrade.
If by January 1, 2004 you have not yet
commenced a benefit, you may be eligible to
receive what is called a Small Pension Payout. If
the pension is going to be lower than an amount
established annually under PSPP rules, you will
be offered an opportunity to take the value of that
pension as a single payment. If you choose the
Small Pension Payout, you give up the right to
receive a monthly pension for life.
Things to consider before making
your choice
Your pension partner, or your beneficiary if you
don’t have a pension partner (or if your pension
partner has signed a pre-retirement death waiver),
is entitled to death benefits if you die before your
pension begins. Complete and forward a
Designation of Beneficiary form to APS if you
have chosen to leave your funds with the pension
plan.
Leave without salary
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You must purchase your period of leave
before leaving PSPP or make arrangements to
purchase it within the time limits. You can
indicate your intention to purchase your leave
on the Benefit Decision form (available from
your employer).
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If you leave PSPP the same year you have
taken a leave without salary, you may apply to
purchase the leave. You have 30 days from
the last day in PSPP to apply through your
employer to purchase the leave.
If you don’t return to work after your leave,
you have 30 days from the last day in PSPP to
apply through your employer to purchase the
leave.
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To apply for your pension
Please let APS know of any change of address for
you or your beneficiary so we can contact you, or
them, if necessary.
Apply in writing to APS three months before the
date you want to start receiving your pension.
Your employer (or APS) can supply you with an
application form. The pension will be effective the
date you request, or the date the application is
received, whichever is later. Send your application
through your employer, if possible, or to the
address shown below.
Optional service
Need information?
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Alberta Pensions Services Corporation (APS)
proudly serves PSPP and provides responsive and
focused member service on behalf of the Plan.
Feel free to contact APS if you have questions
about how leaving the Plan would affect you.
Your employer will also be able to assist you.
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Your employer can tell you the balance owing
on optional service.
If you are making optional service payments
when you leave the Plan, you have 90 days
from the date you leave the Plan to complete
payment.
Unpaid optional service will not be credited to
your account. Your length of service will be
increased only by the service paid for by your
optional service payments.
You can indicate your intention to complete
your purchase on the Benefit Decision form
(available from your employer).
Phone:
1-877-453-1PSP (1777)
Email:
memberservices@pspp.ca
Websites: www.pspp.ca and
www.apsc.ca
This information package provides general information
only. Should anything in the package conflict with
governing legislation, the latter shall apply.
Information Sheet
803LA Package D
November 2010