Pay received by a member temporarily appointed to act in a position of higher authority. Not considered pensionable earnings under the RCMP Pension Plan (See also Basic pay), but pensionable under the CPP/QPP.
Assumptions used by actuaries to predict how certain factors will affect the cost of the plan. These include predictions on interest rates, rates of return on plan assets, retirement age, mortality rates, future salary levels and other factors.
A person professionally trained in the technical and mathematical aspects of insurance, pensions, and related fields. The actuary estimates how much money must be contributed to a defined benefit (DB) pension fund each year in order to support the benefits that will become payable in the future.
A reduced annuity for early retirement. Available to a member with more than two years of service in the Force, who discharges before age 60 and is not entitled to an immediate annuity. Can become payable at age 50 for civilian members.
Average amount of the yearly maximum pensionable earnings (YMPE) for the current year and four prior years. The AMPE is used to determine the amount by which a member's pension will be offset at age 65, or earlier if a member becomes disabled.
Used to calculate the annual benefit. For member benefit: 2% x (Years of pensionable service) x (Highest average salary for 5 consecutive years); For survivor benefit: 1% x (Years of pensionable service) x (Highest average salary for 5 consecutive years).
A retired member receiving an annuity will receive both a lifetime pension and a bridge benefit. A bridge benefit is temporary, payable until a member becomes entitled to CPP/QPP benefits. (Either at age 65 or when entitled to receive CPP/QPP Disability benefits.)
A mandatory earnings-related pension plan to provide workers or their families pension benefits upon retirement, disability or death. While Quebec operates the Quebec Pension Plan (QPP), which is similar to the CPP, all RCMP members contribute to the Canada Pension Plan, even if they live or work in Quebec.
For the purposes of RCMP survivor benefits, an eligible child or dependent can be a natural child, an adopted child or a stepchild less than 18 years of age, or less than 25 years of age and enrolled full-time in a school or university without any substantial breaks in attendance since reaching age 18.
A pension plan that guarantees the payment of a retirement pension based on a pre-set formula that takes into account the length of the employee's service and salary. The RCMPSA is a defined benefit plan.
Person or organization a member designates to receive any pension benefits should there be no survivor upon death. If no survivor or designated beneficiary exists, benefits will be paid to the member's estate.
Elective service is a period of service, as a member of the Force or other employment, that occurred before the member most recently became a contributor under the Royal Canadian Mounted Police Pension Plan. The member may choose to count these periods of prior service as pensionable service by making a valid election to count the service as pensionable service.
An unreduced annuity, calculated using the basic pension formula, payable to a member on discharge. Regular Members (RM) become entitled at age 60 with at least two years of service in the Force or before age 60 with 25 years of service in the Force. Civilian Members (CM) become entitled at age 60 with at least two years of service in the Force or at age 55 with 30 years of service in the Force. In the case of disability, a member with at least two years of pensionable service can receive an immediate annuity at any age.
There is a 35 year maximum of combined service with all employers for which a member could become entitled to a pension payable from the Consolidated Revenue Fund - e.g., the RCMP, Federal Public Service, and the Canadian Forces.
If the total pension payments to the member and/or to the member's surviving spouse or children does not equal five times the amount of the plan member's annual pension, the difference becomes payable to the member's designated beneficiary or estate as a lump sum.
Assigned value of the pension accumulated for elective service being purchased if this service occurred after December 31, 1989. The PSPA is declared to the CRA and will reduce a member's personal RRSP contribution room.
Upon termination, if the value of the pension transferred to the member is less than the sum of the Pension Adjustments (PAs) previously declared, a PAR will be made for the difference to restore a member's RRSP contribution room.
Pension plan or legislative provision stating that upon divorce, separation, annulment of marriage or end of the conjugal relationship, the spouse is entitled to obtain a portion of the pension benefits vested in the other spouse's plan during the period of the marriage or conjugal relationship. (See also Pension Benefits Division Act.)
Fund set up to receive pension plan contributions from members and the employer, which are then invested and used to pay the pension benefits provided by the plan. (See also RCMP Pension Fund and RCMP Superannuation Account.)
The amended Royal Canadian Mounted Police Superannuation Regulations (RCMPSR) which came into force effective September 1, 2012 introduced expanded service buyback provisions known as pension portability. Pension portability means members will have additional opportunities to purchase eligible prior service for pension purposes.
A PTA is an agreement between the RCMP and an eligible employer that allows a pension plan member to increase pensionable service by transferring the actuarial value of benefits earned under a former pension plan directly into or out of the RCMP Pension Plan. In order to enter into a PTA with an outside employer, that employer's pension plan must meet the minimum requirements set out by the terms of a PTA. A member can benefit from a PTA only if the funds are still in the outside employer's pension plan.
Used to calculate the amount of a pension benefit. The total period between the pension service start date and the discharge date – plus any periods of prior service bought back or transferred in and less any non-pensionable periods of LWOP – up to the 35-year contributory service maximum. (See also Service in the Force.)
An account established by the RCMP to receive pension plan contributions from plan members and the government and to pay the pension benefits in respect of service provided as of April 1, 2000. Used to transfer funds to and from the PSPIB.
An account that was established by the RCMP to receive pension plan contributions from plan members and the government for service performed prior to April 1, 2000. It is still used to pay pension benefits in respect of service provided prior to April 1, 2000.
A pension plan, with tax-exempt status, registered under the Income Tax Act of Canada and applicable pension legislation, usually established by an employer for employees, and providing retirement income upon termination or retirement.
A registered investment that provides a pensioner with a regular income from savings or investments formerly held in an RRSP. The capital is taxed only in the year in which it is received as income. The investment income accumulates tax-free until funds are withdrawn as income.
Because the Income Tax Act (ITA) limits the benefits that can be paid from a registered pension plan, any benefits that exceed those limitations must be financed through a separate retirement compensation arrangement (RCA) account rather than through the pension fund.
Used to determine a member's eligibility for a pension benefit (as opposed to pensionable service, which is used to calculate the amount of a benefit.) The total period of service in the Force (SIF) may be more or less than a member's pensionable service. In general, SIF is recognized for police-related service and can be performed with either the RCMP or other eligible external employers. (See also Pensionable service.)
Service in the Force is the period of service from your engagement date to the date of discharge from the RCMP, plus:
Any service as a special constable of the Force before April 1, 1960;
Any service as a member of a provincial or municipal police force that was subsequently absorbed by the RCMP prior to June 18, 2009;
Any service in the Force which was still to your credit under the plan upon re-engagement;
Any RCMP service for which you have made a service buyback or if re-engagement occurred prior to June 18, 2009, any prior RCMP service which is no longer to your credit under the plan; and
Any previous police officer service (see requirements below) for which you have made a service buyback:
graduated from a recognized Canadian police training institution
empowered by Provincial or Federal Legislation to enforce the Criminal Code
Applies to two or more years of pensionable service under the Canadian Forces Superannuation Act (CFSA), Public Service Superannuation Act (PSSA), or Members of Parliament Retirement Allowances Act (MPRAA) that you transferred to the RCMPSA on engagement on or after June 18, 2009. If you subsequently discharge before earning sufficient service in the Force credit to be otherwise entitled to anything other than a ROC or CTA, your surrender protected service entitles you to at least a deferred annuity for the combined years of pensionable service.
Example: A new Member age 45 engages with the RCMP in August 2010, surrenders 15 years of PSSA service, and then discharges from the RCMP after 18 months. He/she would be entitled to a deferred annuity of 16.5 years.
Note that transferred service of less than two years, or purchased service such as the buyback of a ROC or TV from the PSSA, is not surrender protected. Any locked-in funds that were transferred into the RCMP Pension Plan as payment for prior service as part of a pension transfer agreement (PTA) or as pensionable employment (PE) will be paid out to a locked-in vehicle.
A transfer value is a lump sum payment representing the estimated actuarial present value of a plan member's deferred annuity which would be payable at age 60. A transfer value is based on demographic and economic assumptions. (Also known as a "commuted value".)
Annuity payable at retirement calculated under the basic pension formula and without any penalty related to early retirement. Can be immediate or deferred, payable when a member meets age and/or service in the Force requirements.
A member's right to a benefit under the RCMP Pension Plan. A vested member may be entitled to an annuity or a transfer value (previously called "commuted value") if they meet age and/or service in the Force requirements.