Collecting your pension

Those of you who spend the winter months, or have retired permanently outside of Canada, will want to ensure the uninterrupted delivery of your monthly pension. Regardless of your country of residence, you should have no problems collecting your pension benefit.

If you're among the "snowbirds" who winter abroad, your pension payment will continue to be deposited into your Canadian bank account. Even if you relocate to another country permanently, you can benefit from the convenient direct deposit service to a Canadian bank - or you can choose to have your cheque in Canadian funds mailed to your foreign address.

It's worth noting that the income tax deducted from your employment and government pensions may be affected by your new country of residence. The Canada Revenue Agency offers a variety of information that you should investigate before you leave.

If you retired before the age of 65 and earned a benefit under DBprime, you receive an additional monthly payment called a bridge benefit along with your lifetime pension. The bridge benefit is paid from the date of your early retirement until you turn 65.

If you are receiving a bridge benefit, we’ll mail you a reminder before you turn 65 to let you know that your bridge benefit is about to end. Be sure to keep us up to date with any changes to your address.

Benefits earned under DBplus are not eligible for a bridge benefit.

Canada's public pension programs are designed to provide basic retirement income to Canadians. Human Resources and Social Development Canada (HRSDC) is the federal agency that manages the federal retirement savings programs - the Canada Pension Plan (CPP) and Old Age Security (OAS) as well as the Guaranteed Income Supplement (GIS) and the Allowance. Several provinces also offer Provincial Income Supplements. Ontario's program is the Guaranteed Annual Income System (GAINS).

Visit Retraite Quebec to apply for QPP.

The CPP provides income to individuals who have worked in Canada after the age of 18. The benefit is based on the amount of time you have contributed and the amount of contributions you and your employers have made to the CPP throughout your career. The full benefit is available at the age of 65 but you can collect a reduced benefit as early as age 60. An increased benefit is also available for those who choose to start their CPP pension after the age of 65.

The CPP provides a Statement of Contributions which, much like your Member's Annual Pension Statement, indicates the amount of contributions you have made and the amount of pension you can expect to receive. You can request your Statement from CPP up to once a year and use it to help with your retirement planning.

The goal of Old Age Security is to provide a minimum income to Canadian citizens and legal residents aged 65 and older. OAS income is not dependent on your employment history and you do not have to be retired to begin collecting it. In fact, even if you have never worked in Canada, you can still receive OAS if you meet certain age and residency requirements. In general, the amount you receive is based on the length of time you have lived in Canada - the longer your residency, the larger the benefit.

If your income is above a certain amount, you may be required to repay some or all of the benefit you received.

Canada has entered into social security agreements with several countries, which may make it easier for you to collect government benefits. If you don't meet the CPP contribution or the OAS residency requirements here in Canada, time spent living and working in other countries may allow you to qualify. For example, if after the age of 18 you lived in the United States, you can count this period as residency in Canada. Any contributions to the US pension program will also count as contributions for the purposes of the CPP, thereby allowing you to qualify for Canadian benefits.

Many of the agreements work both ways. If you lived and worked in other countries but do not meet their eligibility requirements, periods of contributing to the CPP may be applied to their plans. Human Resources and Social Development Canada's website contains numerous fact sheets on the agreements Canada has with other countries such as the United States, Germany, Ireland and Barbados.

Many Provinces offer additional income programs for low-income seniors. For more information, check with your provincial Ministry of Finance website, or your financial advisor.

Your personal savings are an important third component of your total retirement income. As a Plan member, you can expect to receive your CAAT Plan pension as well as your government benefits when you retire. It's important, however, not to overlook the role your RRSPs and other savings vehicles will play in your total retirement income plan.

Your personal retirement savings plan can be seen as a two-step process. The first step is building up your personal savings - the investment decisions you make will ultimately determine how much income you will have when you retire. The second step involves paying yourself out of the funds you have accumulated.

Once you retire, the emphasis shifts from funding your RRSP to managing the retirement income you have accumulated along with your government and CAAT Plan pensions. Those benefits, once you have applied for them, will provide a steady stream of income for the rest of your life. RRSPs offer a flexible way to meet your retirement income needs by allowing you to enhance your income when you need to.

Funds withdrawn from a non locked-in RRSP can be taken as cash (subject to income tax), used to buy an annuity, or transferred to a Registered Retirement Income Fund. Funds transferred out of a registered pension plan into a locked-in RRSP can only be used for retirement income in the form of an annuity, or a transfer to another locked-in vehicle. They cannot be taken as cash.

How you manage your retirement income will depend on your individual circumstances. As with all financial decisions, it's a good idea to research the available options and consult an independent investment advisor or financial planner for advice.

In February of each year, CIBC Mellon, our pension payroll agent, will send your T4A tax slip to you. It will indicate the total pension paid to you and the tax deducted from your pension during the year. These slips are required for completing your income tax return and filing it with the Canada Revenue Agency.

You may choose to increase the amount deducted from your pension, especially if you receive income from other sources, such as investment and employment earnings. To make this adjustment, contact CIBC Mellon to request Personal Tax Credits Return forms. These forms detail the types of claims and deductions for which you may be eligible. Once you have completed them and sent them back to us, we can adjust the amount of tax we withhold from your pension.