Employment ends

What pension benefit options do I have?

Termination of employment Pension Benefit Form of payment
With less than two years of eligibility service and plan membership, but not entitled to an immediate pension

Deferred pension


OR

commuted value of your pension

  • payable in a lump sum with income tax deducted at source, or
  • transferred to a non-locked-in registered retirement savings plan.
With two or more years of eligibility service or plan membership, but not entitled to an immediate pension

Deferred pension


OR

commuted value of your pension

  • unreduced pension, or
  • reduced pension

  • transferred to:
    • a locked-in retirement savings vehicle,
    • your new employer's registered pension plan, or
    • an insurance company to purchase an annuity.
Entitled to an immediate pension
  • a reduced or unreduced pension, depending on your age; or
  • a deferred pension.


If I defer my pension to a later date, is it indexed?

Yes. Deferred pensions are increased each year that the consumer price index increases.

Do pension benefits paid out affect my Registered Retirement Savings Plan (RRSP) room?

If you take an immediate or deferred pension when you leave, your RRSP room is not affected. If you receive a commuted value, a pension adjustment reversal will be generated, which may restore some RRSP contribution room.

How do I find out the details of my options?

Before June 30th of each year, you receive a personalized pension statement that outlines your pension benefits and related options. For a pension estimate, you can contact the Pension Centre. Finally, when you leave Canada Post, you will receive a statement outlining all your pension options.