Integration
Integration
When you retire, your income will likely come from multiple sources, including:
- Your CSSB pension
- Canada Pension Plan (CPP)
- Old Age Security (OAS)
These income sources don’t begin at the same time. CPP and OAS can start later than your CSSB pension.
Integration adjusts your CSSB pension to provide the same level of income throughout your retirement. To start, the pension payment is higher. Then, when you can start CPP and OAS the pension payment is reduced.
Integration is optional and depends on your age at retirement.
How it works
Before CPP and OAS can start: You get a higher CSSB pension payment to start. This makes up for the absence of these other benefits (CPP and OAS).
At age 60, when CPP start: Your CSSB pension payment is reduced.
At age 65, when OAS can start: Your CSSB pension is reduced again.
Without Integration
With Integration
The pension payment reduction shown is used to recover the higher amount that was paid to you at the start of your retirement.
IMPORTANT: The integration reduction is for life. You may pay back more than you received, depending on how long you live.
Integration options
Retire between 55 and 59: You can integrate your pension with CPP, OAS, or both.
Retire between 60 and 64: You can integrate your pension with OAS.
Retire at 65 or later: Integration is not available.
Lifetime reductions
With integration, when your CSSB pension decreases, that reduction lasts for your entire life. On average, the pension plan will recover the same amount it pays out. However, how much you repay depends on how long you live. You may end up paying back more or less than what you received.
Why you might choose integration:
- It can help you get more money sooner in retirement, possibly letting you retire earlier.
- You might have higher expenses early in retirement, like travel, kids in university, or a mortgage.
- You want to wait before using your personal investments.
- If you’re dealing with health issues that may shorten your life.
Why you might not choose:
- If you plan to work after retirement to earn extra money, integration increases your taxable income.
- If you plan to use your RRSP or other investments to help pay for living expenses until you qualify for CPP and OAS.
- If you don’t need extra income at the beginning of your retirement.
- If you expect to live a long time.
Integration after your death
Integration adjustments (whether increases or decreases) stop when you pass away. Pension payments to your spouse or partner are the same, whether you integrated.
Form
To integrate your pension, your spouse or partner must consent to the integration option by filling out Form 5B – Consent for Integrated Pension.
Apply for CPP and OAS separately
Choosing integration doesn’t automatically start your CPP and OAS benefits. Service Canada does not know you have integrated – it’s imperative that you contact them separately to apply for these benefits yourself.
Reductions to your CSSB pension start at age 60 for CPP and age 65 for OAS, even if you haven’t started receiving these benefits.
Resources
Integration
When you retire, your income will likely come from multiple sources, including:
- Your CSSB pension
- Canada Pension Plan (CPP)
- Old Age Security (OAS)
These income sources don’t begin at the same time. CPP and OAS can start later than your CSSB pension.
Integration adjusts your CSSB pension to provide the same level of income throughout your retirement. To start, the pension payment is higher. Then, when you can start CPP and OAS the pension payment is reduced.
Integration is optional and depends on your age at retirement.
How it works
Before CPP and OAS can start: You get a higher CSSB pension payment to start. This makes up for the absence of these other benefits (CPP and OAS).
At age 60, when CPP start: Your CSSB pension payment is reduced.
At age 65, when OAS can start: Your CSSB pension is reduced again.
Without Integration
You can't include multiple times the same chart.
With Integration
You can't include multiple times the same chart.
The pension payment reduction shown is used to recover the higher amount that was paid to you at the start of your retirement.
IMPORTANT: The integration reduction is for life. You may pay back more than you received, depending on how long you live.
Integration options
Retire between 55 and 59: You can integrate your pension with CPP, OAS, or both.
Retire between 60 and 64: You can integrate your pension with OAS.
Retire at 65 or later: Integration is not available.
Lifetime reductions
With integration, when your CSSB pension decreases, that reduction lasts for your entire life. On average, the pension plan will recover the same amount it pays out. However, how much you repay depends on how long you live. You may end up paying back more or less than what you received.
Why you might choose integration:
- It can help you get more money sooner in retirement, possibly letting you retire earlier.
- You might have higher expenses early in retirement, like travel, kids in university, or a mortgage.
- You want to wait before using your personal investments.
- If you’re dealing with health issues that may shorten your life.
Why you might not choose:
- If you plan to work after retirement to earn extra money, integration increases your taxable income.
- If you plan to use your RRSP or other investments to help pay for living expenses until you qualify for CPP and OAS.
- If you don’t need extra income at the beginning of your retirement.
- If you expect to live a long time.
Integration after your death
Integration adjustments (whether increases or decreases) stop when you pass away. Pension payments to your spouse or partner are the same, whether you integrated.
Form
To integrate your pension, your spouse or partner must consent to the integration option by filling out Form 5B – Consent for Integrated Pension.
Apply for CPP and OAS separately
Choosing integration doesn’t automatically start your CPP and OAS benefits. Service Canada does not know you have integrated – it’s imperative that you contact them separately to apply for these benefits yourself.
Reductions to your CSSB pension start at age 60 for CPP and age 65 for OAS, even if you haven’t started receiving these benefits.