RCMP Pension Services and the Government of Canada Pension Centre are here to help!

In partnership with the Government of Canada Pension Centre, RCMP Pension Services has recorded the Pension Information Session for you to watch at your convenience.

The following video will enhance your understanding of the RCMP pension plan, outline the steps required to prepare for retirement, and explain the different benefit options available to you.

Topics covered in this video include:

Online pension services and tools
Pension plan contributions
Type of service
Benefit calculation
Benefit options
Deductions
Indexing
Survivor benefits
Group insurance benefits
Leave without pay
Service buyback

We are here to help you along the way!

Transcript for Pension Information Session

[Andrea speaks. Coloured hexagons with various symbols sit in the corners of a white background. The Title reads, Plan Member Education Session Royal Canadian Mounted Police Superannuation Act (RCMPSA), RCMP Regular Members Presented by The Government of Canada Pension Centre.]

Hi, my name is Andrea, and welcome to the Plan Member Education Session.

This session is presented by the Government of Canada Pension Center who is also responsible for the administration of the three federal pension plans:

the Public Service, the Canadian Armed Forces and the RCMP.

The information presented is current, based on date of recording.

[A slide appears titled "Today's topics"]

Today's topics:

[Bulleted text appears as the narrator speaks. "Online services available to members"]

Online services available to you, the member...

pension plan contributions
type of service
benefit calculation
benefit options
deductions
indexing
survivor benefits
group insurance benefits
leave without pay
and finally, service buyback

[A slide appears titled "RCMP Infoweb" An image of the Infoweb site is shown. Under the title of "Your Pension" a photo depicts People relaxing in chairs on a seaside beach watching the sunset. Beneath the photo reads, "Critical Pension services continue"]

The RCMP Infoweb is a tool for you. Now, the Infoweb is an intranet site that may only be accessed from your work computer. This site provides you with internal information that's reserved to the RCMP such as Administration manuals, yet you can also access the latest news and notices of your pension. So, under "Human Resources", "Your Pension", you can access under "Regular and Civilian Members", the "Personalized pension tool", which is a calculator that allows you to do estimates.

You can also access the website, where on the website, you can find all the content of your pension plan. Also, on the Infoweb, you'll be able to find the forms for discharge along with the timeline and the contacts. The form for discharge is the 1733.

[A slide appears titled "Pension and benefit website."]

Pension and benefit website.

[A website link appears. www.rcmp-grc.pension.gc.ca. Upon clicking the A small query box appears onscreen with the options: English or French. English is selected]

So, when you access the website, it will prompt you to select language.

[The Government of Canada Home page opens in English.]

Once the language is selected, it will provide various news and notices. Make your way midway through the page and under "Services and Information", there are various topics. Everything we're going to see today can be found under "Services and Information".

Let's do an example.

[The "Active members" page loads]

We'll select "Active Member", and again, depending on life events under "Services and Information", you can find the information based on, example, if you're looking for a service buyback, you would select "Increasing Your Pension"

and it'll provide you with the information required to look into a service buyback.

Should "Taking a Leave Without Pay", information can also be found here. Under "Most Requested", again, I'd like to remind you that you do have access to calculators.

[A slide appears. The title reads, Pension plan contributions for 2024]

Pension Plan contributions.

Now, the RCMP pension plan is a defined benefit plan. It does not depend on the investment decisions nor the economic situation at that time. A defined benefit plan is calculated based on a defined formula. The defined benefit formula will be reviewed on Slide 7.

[bulleted text appears. Contributions from date of engagement: minimum working 12 hours a week.]

The RCMP member begins pension contributions so long as they were working 12 hours a week. You pay pension contributions to the RCMP pension plan at two different rates in the year.

[bulleted text appears. Coordination with Canada Pension Plan (CPP)]

At the beginning of each calendar year your pension contributions are coordinated with CPP.

[A chart appears with two columns headed, On your salary and Rates. Under On your salary, the first row reads, Up to YMPE, the second reads, above YMPE. Under Rates, the first row reads, 9.35% plus CPP pension the second row reads, 12.25%]

You begin contributions to the RCMP at what is called a "low rate". You begin at a low rate because you must also contribute to CPP. Yearly maximum pensionable earnings, is established by CPP.

[Text at the bottom of the slide is referenced. Yearly maximum pensionable earing (YMPE) + $68,500.]

So, once you reach the YMPE, you would be contributing to the RCMP pension plan at what is called the "regular rate". So, you begin at a low rate, and then once the YMPE is reached, you contribute to the RCMP pension plan at the regular rate.

The coordination of our contributions at the beginning of the year is what's going to provide the coordinated benefit called "The Bridge".

We'll review that on the next few slides.

Now, the maximum that a member can contribute into the RCMP pension plan is 35 years, and that's a combination of the Public Service, the Canadian Armed Forces and the RCMP. When a member continues working beyond 35 years, the member would only contribute at 1%.

[A slide appears titled. "Type of service" with two columns headed Pensionable service and Service in the force (SIF)]

Now, there are two types of service. There's "Pensionable service" which is all your service, police service and non-police service in which you would have paid contributions or are going to pay contributions "Service in the force" is service in which involves a police officer.

So, pensionable service is the service that will be used in the calculation. Service in the force is what's going to be used to determine the options available to you.

Example: Not all pensionable service is service in the force. A member may have 20 years of RCMP service. This member may have bought back 10 years of non-police service and could have bought back 5 years of police officer service.

So, this member would have a total of 35 years of pensionable service versus the 25 years of service in the force.

Service in the force will determine the options available to this member. while pensionable service is what's going to be used in the actual benefit formula to calculate this member's benefits at retirement.

[A title appears Benefit calculation]

Benefit calculation.

All monthly benefits begin calculation based on a defined benefit formula.

[The formula appears. Components read. 2 percent (lifetime and bridge) times Pensionable service (years and days) times Highest average salary(5 best consecutive years)]

Now, this formula doesn't represent the amount that will be payable for life. The 2% is comprised of the "Lifetime benefit" and "The Bridge", which is the temporary benefit.

We'll explain Bridge on the next slide. This is multiplied by your pensionable service, which means your years and days of pensionable service times your highest average salary. Now, your highest average salary is based on the best 5 consecutive, which is not necessarily the last 5.

Now, your highest average salary includes your service pay, Senior Constable allowance and bilingual bonus. Overtime and acting are not pensionable.

Let's do an example.

[The equation reads, 2 percent times thirty-five times 90 thousand dollars equals 63 thousand dollars per year or five thousand two hundred and fifty dollars per month.]

2% times the years and days times highest average salary would provide this member with a gross monthly benefit.

Another example:

[the equation reads, 2 percent times twenty-five times 90 thousand dollars equals 45 thousand dollars per year or three thousand seven hundred fifty dollars per month]

2% times the members pensionable service in years and days times the highest average salary provides this member with a gross monthly benefit.

Now, these hours are based on full-time hours.

[A chart reads, if part-time service, 2 percent times thirty times 90 thousand dollars times forty over forty divided by twelve equals four thousand five hundred dollars a month. Plus a second line of calculations at 2 percent times thirty times 90 thousand dollars times twenty over forty divided by twelve equals three hundred seventy-five dollars a month, totalling four thousand eight hundred and seventy-five dollars a month]

In a part-time service scenario, we must continue the formula to reflect the part-time hours on full-time hours. So, both members may have the same years in pensionable service, yet, for the member that worked part-time, we must continue the calculation of part-time hours on full-time hours, which will reflect this member's gross monthly benefit.

[A slide appears Bridge Benefit Bullets points are listed at the narrator speaks]

The Bridge benefit.

Now, the "Bridge", it says it in its name. It was always meant to bridge the retiree up until age 65. It was always meant to be a temporary benefit or up until CPP/QPP disability.

Now, we saw on the contribution slide that our contributions are coordinated with CPP at the beginning of the calendar year. That is where the coordinated benefit bridge is derived from.

[A horizontal bar chart appears. The vertical axis reads, Pension incomes, the horizontal axis reads, Retirement. The upper bar is labelled Bridge, the lower longer bar is labelled lifetime.]

So, example: Let's say that a member retires. The 2% comprised of the bridge and their Lifetime benefit is paid up until 65 because in normal time the member is eligible for a regular CPP/QPP. Now, since 1987, Canadians can now access an early or defer their CPP. This has no impact on how the bridge is paid. So, the member retires, the 2% is comprised of the bridge and the lifetime, this retiree may decide to access an early CP we continue to pay the bridge up until age 65 when it ceases.

Should a member decide to defer again, the 2% comprised of the bridge and the lifetime the bridge ceases at 65 and the retiree may differ their CPP at a later date.

Now, the bridge was never meant to really equal the benefits received from CPP/QPP. The bridge was meant to bridge you till age 65 or till disability. The bridge is really dependent on your years of pensionable service with the federal government while your CPPis dependent on how much you've been contributing to CPP since the age of 18.

For any questions about taking an early or deferred CPP, those questions can be directed to CPP. We've included their phone numbers at the end of the presentation.

[A slide appears with three columns titled "Lump sum options" The headers read Age, Service in the force and Lump Sum Payment. The first row reads ]

Lump sum options.

Now, all your options depend on age and service in the force. "Lump sum option" means it's a one-time payout. At any age, that a member would have less than 2 years of service in the force the only thing that this member is eligible for is a return of contributions plus interest. It takes a minimum of 2 years to be vested into the RCMP pension plan.

Should you be younger than 60 and have between 2 years but less than 20 years of service in the force you are eligible for a transfer value.

A transfer value is a lump sum payment. Now, this lump sum payment is an actuarial calculation based on your future entitlement It means that you want to take your pension with you. It's like closing your account. It means that you will not be eligible for health care and dental there will be no indexing, there will be no survivor pension should anything happen to you and going forward, you will be responsible in investing those funds and being subject to market fluctuations.

[A two column chart appears titled Transfer Value. The first column reads, Amount within tax limit the subhead reads, of Transferred to. The Second Column reads, Amount in excess of tax limit the subhead reads, Paid to.]

Now, the Pension Center can't just cut you a check for the present value of your future entitlements. The Income Tax Act defines how we are able to pay your transfer value.

There's an amount that's within the tax limit, which means you must transfer to a locked in Registered Retirement Savings Plan (RRSP) or another registered pension plan or/and you can purchase a life annuity. The amount in excess of the tax limit will be taxed at source and paid to you unless you have sufficient RRSP room, you can exhaust your RRSP room and the balance you will be taxed at source and paid to you.

[A three column chart titled Monthly options appears. Unreduced (immediate annuity) The Headers read Age, Service in the force Discharge reason. The lower headers read Age Pensionable service and Discharge reason.]

Let's talk about monthly options.

So, monthly options is the most popular of options because you meet the age and service in the force requirement. If you are 60 or older and have 2 or more years of service in the force, you're eligible for an unreduced benefit.

If you're younger than 60 with 25 or more years of service in the force, you're eligible for an unreduced benefit.

In the event of disability should the member be any age and have 2 or more years of pensionable service, an unreduced benefit will be calculated.

So again, the unreduced benefit is the 2% times your years and days of pensionable service times your highest average salary.

[A slide appears with three columns titled "Monthly option: Reduced (Annual allowance)The headers read Age, Service in the force and Discharge reason]

There are members that wish to leave sooner. In the event a member wishes to leave sooner the monthly option is called the "Reduced option". Again, you must meet the age and service in the force requirement. If you're younger than 60 and have between 20 to 24 years of service in the force you're eligible for a reduced monthly benefit.

Now, we will have to calculate a reduction because you want to access your pension sooner. Now, the reduction is the lesser of 5% times the difference of 60 less your age, rounded up to the nearest full year or 25 less the service in the force, rounded up to the nearest full year.

Let's do a scenario:

A member wishes to leave sooner. So, the first calculation is the benefit calculation that we saw on Slide 7. So, 2% times the years and days times the members highest average salary, divided by 12, provides a gross monthly benefit.

But now, we must do the comparison to see which is the lesser reduction that will apply to this gross monthly benefit.

So again, we must round up the member's age or service in the force to the nearest full year. So, we will make the comparison, take the lesser.

It would mean that this member who wishes to leave sooner will have the lesser reduction applied to the gross monthly benefit, which provides the new gross monthly benefit going forward from termination.

Let's do another example.

Let's do a scenario where a member has 24 years plus a day. So again, we must calculate the benefit.

The benefit is 2% times the years and days of pensionable service times the highest average salary divided by 12, provides a gross monthly benefit.

Now, we must verify the lesser of the reduction based on age and service in the force.

So, here, the comparison shows zero reduction. Why? Because we need to round up the 24 years plus a day to the nearest full year, which means a zero reduction. So, this member's gross monthly benefit remains unreduced.

[A slide appears with three columns tilted "Monthly option: Deferred annuity payable at 60". The headers read Age, Service in the force and Discharge reason.]

If you are not yet 60 years old, and you have less than 20 years of service in the force in addition to the transfer value option that we discussed earlier; you may instead decide to defer your monthly benefits so they become payable when you turn 60.

So example: should you leave your employment today, we calculate your benefits without reduction, which becomes payable at age 60.

Please note that during the period in which you are deferring your benefits you will not be converted for health and dental. At age 60 when you are eligible for your benefits, you may then apply for health and dental plans at that time.

It’s very important to keep your contact information current with the Pension Centre so we may mail you your pre-retirement package with all the forms to be filled out two to three months prior to your sixtieth birthday.

[A slide appears titled Option summary. Text reads, Options based on age and years of service. A three column summary chart appears. The headers read, Age, Service in the force and option.]

We have a summary slide that provides you with your various options based on your age and service in the force.

[A slide appears titled Discharge process. Bulleted text appears as the narrator speaks.]

Let's talk about the discharge process.

You should be contacting the Pension Center 12 months prior to retirement. It gives us enough time to review your file for any missing data. We would be providing you with a benefit estimate along with the forms.

You should also contact the National Pay operations office 6 months prior to retirement where they can help you with the discharge process and the form.

Now, when do the pension payments happen? Your initial benefit would be paid within 45 days of retirement or from reception of the last forms received. Once a retiree, your monthly payments arrive at the end of each month, so they're in arrears, so example: for January, it's the end of January, and so forth.

[The website link is listed rcmp.pension.gc.ca]

Information on discharging and the timeframes are available on the website.

[A slide appears titled "Deductions" Bulleted text appears as the narrator speaks.]

Deductions.

Once you're a retiree, what can we expect from our monthly gross benefits? The deductions that will continue are income tax. If you still have a service buyback, we will take the installments leave without pay deficiencies, we will recover those and in the event of debt due to the Crown will also be recovered.

What becomes optional when you're a retiree? The RCMP Group Life and Accidental Death and Dismemberment Insurance becomes optional. Public Service Health Care Plan (PSHCP) and the Dental Service Plan are optional. You may also ask the Pension Center to take extra income tax if you wish.

What ceases when you become a pensioner? Pension contributions cease, Disability Insurance, EI and CPP.

[A slide appears titled "Indexing" A subtitle reads, "Calculation."]

Indexing.

One of the great advantages of our pension plan. What is indexing and how is it calculated?

[Text appears, Annual cost-of-living increase]

Indexing is a percentage increase that is applied to your pension if the cost of living goes up. So, the Consumer Price Index is established by Statistics Canada and it is based on the increased cost of living compared to the 12 prior months and the purpose is to allow your pension the same buying power going forward, regardless of how the economy is doing.

[Text appears: Effective January 1st]

On January 1st of each year, your benefits will be adjusted to take into account the Consumer Price Index.

[Text appears: First increase pro-rated.]

Yet, the first increase will be pro-rated, based on the month following your termination.

[A slide appears titled “Indexing: Calculation.]

So, let's see an example of benefits that include full indexing...

... then we'll do an example for the first January after termination,

which has to be pro-rated.

[Bulleted text appears. Indexing January 01—2024 equals 4.8 percent. A Monthly calendar of the year 2023 appears.]

So, when a retiree has been retired a full year already, the member is entitled to full indexing calculation as announced by Statistics Canada for that calendar year. Now, this is cumulative even if it is not yet payable, which we will see on the next slide when it becomes payable.

So again, being retired a full year means that as of January 1st the member is entitled to an adjusted cost of living as announced.

[Bulleted text appears. Termination Fifteenth of May 2022 Pro-rated at 7/12 The months on the calendar are greyed out prior to June. A red x covers the month of May.]

Let's do an example for the first year, which is prorated based on the month following the member's termination month.

So, in this example, the month following the termination month means that we need to apply a pro rata to the indexing that will be announced for the January following termination.

[Bulleted text appears. 7/12 equals 0.5833 times 4.8 percent.]

So, we will need to apply the pro rata to the indexing that applies for that January 1st

[The calculation results read, First increase equals 3.68% ]

Which means that the member will have a first adjusted increase based on that first year pro rata.

[A slide appears titled "Indexing" the subtitle reads, Payable.]

When does it become payable?

It becomes payable the January following discharge at 60 and up or disability or should the member reach the 85 factor which means the sum of the members age and years of service equals 85.

[A slide appears titled Survivor benefits: The subtitle reads, Spouse or common law partner (proof required)]

Survivor benefits.

Who are your survivorsWhat are they entitled to?

So, the act defines spouse or common-law partner as a survivor. Now, if you are married, we should have proof as in a marriage certificate.

If you live in a common-law relationship, you should keep a file at home that proves the common-law relationship.

A monthly benefit is payable for life for the spouse or common-law partner. This amount will be indexed for the spouse or common-law partner and they will also be eligible for health care and dental coverage.

How do we calculate the benefit?

The benefit for the survivor equals 50% of the member's unreduced amount so that means that we would waive any reduction that was applied and we would add the bridge back on, should that apply. The relationship must have started prior to termination or age 60, whichever is later.

[A table two column chart appears. The Headers read Eligible and Not Eligible.]

Now, let's review who is eligible.

So if you are separated from spouse the spouse is still eligible for the 50% of the unreduced benefit.

Who is not eligible?

If you're separated from a common-law partner or in the event of being divorced from your spouse that ex-spouse is no longer eligible.

Again, update your file should there be a divorce decree, have the Pension Center receive a copy of that divorce decree.

[A slide appears titled Survivor benefits. The subtitle reads, Children.]

Children are also your survivors.

Children up to the age of 18 or up to the age of 25 and studying full-time. So again, be sure that your children's birth certificates are on file. Should they be studying full-time, be sure that yearly, you get a new proof of full-time studies between the ages of 18 and 25. They are entitled to these benefits and they will be indexed.

How do we calculate their benefits?

It will equal 10% of the unreduced amount so each child is entitled to 10% up to a maximum of 40%. In the event there is no spouse or common-law partner, each child would receive 20% up to a maximum of 80.

[Text appears, Duty related Death. Bulleted text appears as the narrator speaks.]

In the event of duty-related death survivors may be qualified for Survivor Income Plan. The purpose is to maintain the same level of the members net income and the eligibility is determined by Veterans Affairs yet administered by the Pension Center.

[A slide appears titled Survivor Benefits: the subtitle reads, Minimum benefit. Bulleted text appears as the narrator speaks.]

Minimum benefits.

Now, in the event there are no survivors the Pension Center will review if the funds have been exhausted or not. So, in the event there are no survivors, a lump sum payment will be paid.

To whom?

It will be paid to the designated beneficiary or to the estate. This income is taxable.

[A table is explained by the narrator.]

So the Pension Center will calculate the greater of, either a return of contributions plus interest or 5 years of unreduced pension, less any amount of pension already paid.

[A slide appears, Group insurance benefits: The subtitle reads, RCMP group life and AD&D insurance plans.]

Group insurance benefits.

[A chart lists the plans]

So, all Basic life, Optional life, Dependent life, Accidental Death and Dismemberment.

[Bulleted text appears as the narrator speaks.]

Now, it's important for you to keep your file updated along with your beneficiary.

[Text lists the contact information for the RCMP Benefits Administration Centre. 1-800-661-7595 or pbs-sra.ca.]

You should be contacting them directly.

[A slide appears titled Group insurance benefits: The subtitle reads, Public Service Health care Plan. Bulleted text appears as the narrator speaks.]

Public Service Health Care Plan.

In order to be eligible for the PSHCP, you need to have had a minimum of 6 years of pensionable service. Family includes spouse, common-law and children up to the age of 21, up to the age of 25 if they're still studying full-time.

[A chart appears. Monthly premiums (pensioner) Text reads, Effective July 1, 2023.]

Here are the rates based on individual coverage or family coverage and the premiums are based on level 1, 2 or 3. The difference between these levels determine how much the health care provider will pay for your daily hospital provisions.

Now, this doesn't mean that having level 3 guarantees a private room. It's pending availability.

[A slide appears Group insurance benefits: The subtitle reads, Pensioner's Dental Service Plan. Bulleted text appears as the narrator speaks.]

Pensioners' Dental Service Plan.

So again, family includes spouse, common-law partner and children up to the age of 21 or 25 if a full-time student. You must keep it for a minimum of three full calendar years once it has been initiated. In this three-year period, you can change from Individual to family and back to individual again, no problem.

But after the full three calendar years, should you cancel, you can no longer reapply.

[A two column chart appears. The first Header reads, Coverage, the second header reads, Monthly Premiums.]

Here are the monthly premiums for retirees either individual, one family member or more than one family member.

[A slide appears titled Leave without pay.]

Leave without pay.

[Text appears, Authorized pensionable leave.]

The first conversation you're going to have is with your supervisor because this leave needs to be authorized.

[Text appears Repayment options]

The second conversation you're going to have is with the Pension Center so that we may provide you counselling on the deficiencies that will incur during your leave. So, those pension contributions that we saw at the beginning of the presentation are going to become deficient. We'll provide you with an estimate and we'll also counsel you on how that can be repaid so you can repay with a lump sum you can repay with an RRSP or by payroll deduction. We'll allow you double the time of your leave to remit those deficiencies with no interest or default.

[Text appears, Option not to count after 3 months.]

Now, the pension expert is going to provide you with an option not to count.

What does that mean?

Say that you decided to take a one-year personal leave. Now, you may choose to only count the first 3 months of that leave. By counting only the first 3 months of that leave, means you're opting out of the balance. That means that in your defined benefit formula, there will be 9 months missing.

[Text appears, Income tax Act limits: 5 and 3 years]

The Income tax Act has a limit on how much leave you're entitled to throughout your career. Everyone has 5 years, and those that choose to adopt or have a child, they have 1 year per child from date of adoption or date of birth up until 3 years.

[Text appears, non pensionable leave.]

There are some types of leave that are non-pensionable, examples such as suspension but those do not count as pensionable leave and in your pension tool, it already knows which types of leave do not count as pensionable.

[A slide appears titled "Service buyback" Text appears as the narrator speaks.]

Service buyback.

So, the purpose of a service buyback is to help increase your pensionable service. You can buy back prior RCMP time, Public Service, Canadian Forces and Parliamentary. You may also purchase prior service under another pension plan. The cost will depend on the type of leave or the type of service you want to buy back and when you initiate the service buyback, repayment options.

So, you will have the option to repay either with a lump sum, transfer over another RRSP, another registered pension plan or you can also do payroll deductions which are subject to 4% interest and a mortality charge.

A medical exam may be required. The pension experts can guide you through those.

And... Service in the Force.

So, Service in the Force is specific to police service. Communicate with the pension experts so that they can provide you with estimates and guide you through the process should you wish to initiate a service buyback.

[A slide appears titled "Other topics" Bulleted text appears as the narrator speaks.]

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RCMP Pension Services and the Government of Canada Pension Centre are here to help!