Pensions Information
Overview
As a NAPE member, your retirement security is supported through one or more pension programs. Understanding the type of pension plan you belong to is essential when making financial and retirement decisions. There are three main categories of pension plans relevant to our members:
1. Defined Benefit (DB) Plans
These plans provide a guaranteed income in retirement based on a formula that typically considers your salary and years of service. The employer bears the investment risk. As long as you meet the eligibility criteria, you will receive a predictable monthly pension for life.
2. Defined Contribution (DC) Plans
In a DC plan, you and your employer contribute a set amount to an individual account. Those funds are then invested, and the amount available at retirement depends on investment performance. You bear the investment risk, but you also have more control over investment decisions.
3. Federally Administered Programs
These are government-run programs that provide basic income support during retirement, based on your work history and residency in Canada. All eligible Canadians may receive these benefits in addition to their workplace pensions.
Each pension type plays a different role in supporting your financial security during retirement. For more details, visit the section that applies to your plan.
Types of Pension Plans
Defined Benefit Plans
Defined Contribution Plans
Federally Administered Public Pensions
What pension plan am I contributing to?
Speak with your Human Resources Department. Your plan depends on where you work and your type of employment.
Pension rules and entitlements vary depending on your specific plan. Below, we’ve listed common questions many members have. While we can’t provide plan-specific answers here, we’ve included guidance and links to help you find accurate information for your plan.
Please refer to your plan’s official documentation or contact your plan administrator for personalized assistance.
The questions below are a helpful resource to take and discuss with your plan administrator if you are seeking general information or are unsure of what to ask or where to begin.
FAQ
Are you considering retirement and not sure where to go?
Retirement planning depends on your pension plan’s age requirements, years of service, and eligibility rules.
How much is my pension when I retire?
This depends on your plan’s formula (e.g., years of service, salary).
- Contact your pension administrator about their pension calculator
- Refer to the above section for contact information
When I retire, how long can I expect receive my pension entitlements?
This depends on the type of pension plan you are contributing to. Most pensions provide monthly payments for life, but check your plan for guarantees and survivor options.
- Contact your pension administrator about the plan’s structure
Is the pension fund sustainable?
Pension sustainability is assessed through regular actuarial valuations. Each plan reports this publicly.
- Contact your pension administrator about their financial report
Can the employer claw back my pension?
In general, earned pensions are protected. However, specific scenarios vary. If you have any concerns about claw backs you should contact your pension administrator.
Can I retire and still work while receiving a pension?
Some plans allow it but others restrict, or reduce pension income, during re-employment. Contact your pension administrator about the plan’s rules on re-employment.
Can I opt for a commuted value instead of monthly pension?
Some plans allow lump-sum withdrawals (commuted values) before retirement age. Contact your pension administrator.
What if I have a government pension and a pension outside the public sector?
Coordination of multiple pensions is possible, but integration rules vary. Contact your pension administrator about the rules around receiving multiple pension benefits.
Can I buy back pension time?
Some plans allow past service buybacks under certain conditions. Contact your pension administrator to ask about potential purchasable service.
Disability Tax—Can I work and still receive my disability benefits?
This typically relates to income-tested benefits (e.g., CPP-D) rather than your pension plan.
Can I still have my health benefits after retirement?
Some plans offer retiree health benefits; others do not. Contact your pension administrator AND Human Resources Department to ask about your post retirement health benefits.
If I pass away before I retire, how much will my spouse receive?
Survivor benefits are defined in each plan. Some offer lump sums or ongoing payments but you must contact your pension administrator for more details.
Do I have a choice in paying into a pension plan? Why?
Pension participation is usually mandatory under your collective agreement. Contact your Human Resources Department to ask about participation requirements.
Do I have a choice in paying into a health plan?
This depends on the structure of your benefit plan and employer agreement. Contact your Human Resources Department to ask about participation requirements.
What is the difference between a Defined Benefit and a Defined Contribution plan?
A Defined Benefit (DB) plan guarantees a fixed pension amount based on salary and years of service. A Defined Contribution (DC) plan is based on how much you and/or your employer contribute and how those investments perform. Contact your pension administrator for further details about how the type of plan affects your pension.