Your pension will NOT begin automatically!
You must apply to begin receiving your pension by submitting the Application for Monthly Pension Benefit (PDF) to the Pensions & Benefits office. Your employer cannot do this on your behalf. You may lose pension payments if you apply after your last day worked.
The Pensions & Benefits office can provide you with valuable information regarding your CSSF pension benefit, but cannot advise you on personal financial decisions. Ultimately, it is up to you to decide when your CSSF pension benefit, along with CPP, OAS, and personal savings, is adequate to fund the lifestyle you wish to enjoy during your well-deserved retirement years.
A customized annual pension statement is mailed to your home each summer to keep you informed of the pension you have earned for your years of service to date and what your annual pension income is projected to be at various milestones after the age of eligibility.
If you are within a year of your desired retirement date, you may wish to request a formal pension estimate by contacting the Pensions & Benefits office.
Whether you decide to stop working or not, you must begin drawing your monthly pension on December 31st of the year in which you turn 71.
It is important to consider your retirement throughout your career so that you don't miss out on options that could allow you to retire earlier with a larger pension. Options to keep in mind throughout your career include:
- Purchasing eligible periods of service that are subject to purchasing deadlines (see the Purchasing Service section for more information), and
- Transferring contributions and pension service from another defined benefit plan with a previous employer (see 'Transferring Past Service' in the Basics of Plan Membership section for more information)
Once you have made the decision to retire and have chosen your retirement date, you must:
- Notify your HR Manager of your intent to retire
- Complete and submit to the Pension and Benefits the Application for Monthly Pension Benefit (PDF) two months before your chosen retirement date
- Contact Johnson Inc. if you are interested in retirement Group Insurance Benefits
The age at which you decide to retire and the years of service you have accumulated will determine if your pension will be subject to a reduction or not.
If you wish to have an unreduced pension you must work until you have 32 years of pensionable service OR work until the age of 62.*
You are eligible to start drawing your CSSF pension as early as age 55 but it will be subject to an early retirement reduction unless you have 32 years of pensionable service. The total pension amount is reduced by the lesser of:
- 3.0 percent for each year prior to attaining 32 years of service, or
- 3.0 percent for each year prior to age 62
* All service prior to 2019 will still be assessed using the 30 years of service or 60 years of age rule. This may result in a minimal reduction if most of your service took place prior to 2019.
- Integration with Canada Pension Plan (CPP)
Please be aware that the CSSF is integrated with the CPP. In addition to your lifetime pension, the CSSF provides you with a supplemental bridge benefit until the age of 65. The bridge benefit will stop being paid the month after you turn 65. Your annual pension statement provides you with information on your lifetime and bridge amounts. The CSSF bridge benefit is payable until age 65 whether you take CPP early, or not.
- Marital Breakdown
Legally married spouses are entitled to up to 50% of pension benefits that were earned during the course of a marriage. In the event of a relationship breakdown that results in a court ordered division or a mutually agreed upon division, your pension will be reduced in order to fund a separate monthly pension in the name of your former spouse. Former common-law spouses are only entitled to a portion of your pension if agreed upon by the member or if stipulated by a pre-existing domestic contract. For more information, see the Ending a Spousal Relationship section.
- Tax Considerations in the Year You Retire
The Retirement Pay you received is considered taxable income, unless you transferred it into a Registered Retirement Savings Plan. Contact your HR if you have questions pertaining to Retirement Pay. You will have a variety of income sources in the year you retire, including employment income, retirement income, vacation payout and retirement pay. All sources of income will be taxed at a different rate. Planning ahead with these considerations in mind will help you avoid owing money at tax time.
The CSSF will annually increase your pension to off-set the effects of inflation if the Plan is sufficiently funded. This is known as indexation of your pension.
This increase, or indexation, is awarded on January 1st of each year if the prior year's funded status is greater than 110%. Indexation will not be awarded if prior year's funded status was below 110%.
|Funded Status||Pension Indexation|
|Less than 110%||Suspend indexation for next year|
|110% +||Provide indexation for next year|
|118% +||Provide missed indexation from prior years, if applicable|
The maximum post-retirement indexation that the Plan can award is equal to 100% of the Consumer Price (all items) Index for Canada. The minimum inflation protection is zero percent, and there may be years in which only partial inflation is awarded.
If full indexation is not awarded, and subsequently the Plan's funded status reaches 118%, the Plan allows for the awarding of missed indexation on a go-forward basis.