How your pension plan works

(Shows up on screen: Public Services and Procurement Canada. The words fade. Background music: jingle with acoustic guitar. Welcome page on white background showing hexagonal shaped icons with different images. In the middle, the words Government of Canada Pension Centre and the Royal Canadian Mounted Police (RCMP) logo appear and then disappear. Soft instrumental music playing. The narrator is standing in front of the camera.)

At the Government of Canada Pension Centre, we’re here to help!

My name is Katherine and our goal today is to help you understand the basic elements of your RCMP pension plan, and make sense of what can sometimes feel like complex information.

(Background music continues. The narrator is now seated in a chair, at an angle.)

The RCMP pension plan is what’s called a defined benefit pension plan. In a nutshell, it means at retirement you’ll be able to depend on a predetermined lifetime pension amount. You don’t have to worry as much about the investment return of the pension plan since it doesn’t directly impact your pension amount. Your pension will be paid on a monthly basis for the rest of your life.

(When the narrator says “… is what’s called a defined benefit …,” a black text box with white letters appears on the top-left corner of the screen, with the words DEFINED BENEFIT. The text box disappears upward.)

(Background music continues. The narrator is still seated in a chair, and now faces the camera at a different angle.)

Your lifetime pension is based on a formula that considers your average salary and the years of service you contributed into the plan. And in the event of your death, your eligible survivors, for example your spouse and children, would receive a monthly pension.

(When the narrator says “… that considers your average salary …,” a black text box with white letters appears on the top-left corner of the screen, with the words AVERAGE SALARY and YEARS OF SERVICE. The text box disappears upward.)

How does all this work? Well, all eligible members must join the plan. Contributions to the plan are made by your employer, the Government of Canada, and by you through payroll deductions.

While employed with the RCMP, you earn both Service in the Force (also known as SIF) and pensionable service. Depending on whether you are a Regular member or Civilian member, there are differences in how SIF and pensionable service are used to determine the pension benefit you will be entitled to at retirement. If you have specific questions regarding SIF and pensionable Service, give us a call: we’ll be happy to shed some light for you.

(When the narrator says “… you earn both Service in the Force …,” a black text box with white letters appears on the top-left corner of the screen, with the words SERVICE IN THE FORCE (SIF) and PENSIONABLE SERVICE. The text box disappears upward.)

(When the narrator says “If you have specific questions regarding SIF …,” a black text box with white letters appears on the top-left corner of the screen, with the number 1–855–502–7090. The text box disappears.)

(Background music continues. The narrator is still seated in a chair at a different angle.)

You can only accumulate a maximum of 35 years of pensionable service under the plan. This could include prior pensionable service with other federal government pension plans like the ones from the Canadian Armed Forces and the public service. You can still work more than 35 years. If you do, you will contribute to the pension plan at a reduced rate, but your average salary beyond 35 years of service will still be considered in the calculation of your pension benefit.

(When the narrator says “You can only accumulate a maximum of 35 …,” a black text box with white letters appears on the top-left corner of the screen, with the words 35 YEARS OF PENSIONABLE SERVICE. The text box disappears to the left.)

(Background music continues. The narrator is still seated in a chair, facing the camera at a different angle.)

Like many other plans, the RCMP pension plan is coordinated with the Canada Pension Plan and Quebec Pension Plan—commonly known as CPP and QPP.

(When the narrator says “… is coordinated with the …,” a black text box with white letters appears on the top-left corner of the screen, with the words CANADA PENSION PLAN and QUEBEC PENSION PLAN. When the narrator says “…CPP and QPP,” the words in the black text box on the top left corner of the screen are replaced with CPP and QPP in white letters. The text box disappears upwards.)

Without going into too much detail, this basically means that when you retire, your monthly pension could have two parts:

• First, you’ll always receive your lifetime RCMP pension, which is payable from the date your pension begins until your death; and

  (When the narrator says “… you’ll always receive your lifetime RCMP pension …,” a black text box with white letters appears on the top-left corner of the screen, with the words LIFETIME RCMP PENSION. The text box disappears to the left.)

• Second, you may receive a temporary supplement to your lifetime pension, referred to as a bridge benefit, which is generally payable until age 65. This is the age at which Canadians typically start receiving regular CPP or QPP benefits. However, the bridge benefit may end sooner if you start receiving CPP or QPP disability benefits.

  (When the narrator says “… referred to as a bridge benefit …,” a black text box with white letters appears on the top-left corner of the screen, with the words BRIDGE BENEFIT. The text box disappears upwards.)

(Background music continues. The narrator is still seated in a chair at a different angle.)

Did you know that if the cost of living goes up, your pension payment may also be adjusted? That’s right! Every year, after you meet the conditions for eligibility, your pension payment may increase to take into account inflation. This is what’s known as indexing. If you'd like more information about this, feel free to reach out to us.

(When the narrator says “… this is what’s known as indexing …,” a black text box with white letters appears on the top-left corner of the screen, with the words INDEXING/INDEXATION. The text box disappears to the left.)

(Background music continues. The narrator is now standing.)

I hope this was helpful! This was just a quick overview. I’m sure you want to learn more about what your pension plan has to offer, right? So feel free to view other pension-related videos we’ve created just for you! Please visit the RCMP pension and benefits website at RCMP-GRC.PENSION.GC.CA.

(When the narrator says “… the RCMP pension and benefits website at…,” a black text box with white letters appears on the top center of the screen, with the words RCMP-GRC.PENSION.GC.CA.)

Thanks for watching!

(Background music playing… Contact information page, with the words CONTACT INFORMATION [underlined]: GOVERNMENT OF CANADA PENSION CENTRE—MAIL FACILITY, PO BOX 8500, MATANE, QC, G4W 0E2. Logo of a small telephone, followed by the word TELEPHONE: 1-855 502 7090. Logo of a small envelope, followed by the word EMAIL: PensionCentreRCMP.CentredespensionsGRC@pwgsc-tpsgc.gc.ca. White screen with the words CHECK US OUT: Logo for Facebook and the words /PSPC.SPAC. Logo for Instagram and the words @pspc_spac. Logo for Twitter with the words @pspc_spac. Logo for YouTube and the words /PWGSCanada. White screen with the Government of Canada Pension Centre logo in black, with a small red Canadian flag. The volume of the music goes down and stops. The Canada logo appears in black, on white background. The Canadian flag is waving. A 4-note jingle is heard.)