What to expect after retirement

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What to expect after retirement

Once you’ve applied for your pension, there are a few more steps to ensure everything is in order. From reviewing your forms to confirming your pension amount, here’s what you can expect as you transition into retirement.

Reviewing your retirement application

CSSB will review your retirement forms to ensure they are complete, that deadlines were met, and that all documents are included. We’ll contact you if anything is missing or if we have questions.

Once our review is complete, we’ll send you a letter to confirm details about your monthly pension. If you don’t receive this before your retirement date, contact CSSB. 

First payments

If all documents are received, you will receive your first payment in the month you retire.

Your pension can start before your employer confirms your final service and earnings. This means we will use estimated amounts, which may be lower than expected.

Once we receive final information from your employer, CSSB will recalculate your pension. We’ll send you a letter to confirm your final pension amount and explain any one-time deductions or adjustments.

CSSB will recover any pension paid to an ineligible person or for an ineligible period.

Insurance premiums 

If you had insurance when you retired and started your pension right away, your Life and Dependents insurance coverage (if applicable) will continue at reduced amounts. No insurance premiums will be deducted while your pension is paid on an interim basis. 

Once your eligibility and coverage are confirmed, we will collect any missed premiums through a one-time pension adjustment.

Pension payment schedule

Pensions are paid by direct deposit on the second last banking day (Monday to Friday) of the month. If you retire partway through a month, you’ll get a partial payment for that month and full payments starting the next month. 

Monthly pension statements

CSSB sends monthly statements showing your pension amount and any deductions or adjustments. These are available through Online Services or by mail.

You can receive statements each month or only when there’s a change to your net pension. You can update your preferences in Online Services. 

If you’re not signed up for Online Services, a pension statement will be mailed to you only in months with a change in your pension or deductions.

Future pension adjustments

Updated service and salary: Your final pension amount will be recalculated based on the updated service and salary information we receive from your employer. This includes vacation pay. 

Insurance premiums: Premiums will be deducted retroactively to your start date. 

Bridging benefit: This benefit ends at age 65. 

Integration with CPP and OAS: Pension reductions begin at age 60 for CPP and age 65 for OAS, and continue for your lifetime. Contact Service Canada directly to apply for CPP and OAS benefits.

Inflation protection: Cost-of-living adjustments are paid in the thirteenth month after retirement and then each July. These adjustments are not guaranteed.

Income tax changes: Pension payments are taxable. Taxes are deducted based on the TD1 forms you provided and the tax rates in effect. Changes to your monthly pension or tax rates could change the amount of tax deducted. You can request increases to your tax deduction through Online Services or by contacting CSSB. If you want to decrease your tax deduction, you’ll need to provide updated TD1 forms.

Divorce or separation: If your pension must be divided after ending a relationship with your spouse or common-law partner, your pension will be adjusted.

Survivor’s pension: If you receive a survivor’s pension, the amount will be different from your spouse’s, depending on the option selected at retirement. When cost-of-living adjustments are granted, you will receive two-thirds of the adjustment.

IMPORTANT

Please keep your mailing address up to date through Online Services or by contacting CSSB. If mail is returned, we will try to contact you and update your information. Pension payments may stop if we can’t reach you.

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What to expect after retirement

Once you’ve applied for your pension, there are a few more steps to ensure everything is in order. From reviewing your forms to confirming your pension amount, here’s what you can expect as you transition into retirement.

Reviewing your retirement application

CSSB will review your retirement forms to ensure they are complete, that deadlines were met, and that all documents are included. We’ll contact you if anything is missing or if we have questions.

Once our review is complete, we’ll send you a letter to confirm details about your monthly pension. If you don’t receive this before your retirement date, contact CSSB. 

First payments

If all documents are received, you will receive your first payment in the month you retire.

Your pension can start before your employer confirms your final service and earnings. This means we will use estimated amounts, which may be lower than expected.

Once we receive final information from your employer, CSSB will recalculate your pension. We’ll send you a letter to confirm your final pension amount and explain any one-time deductions or adjustments.

CSSB will recover any pension paid to an ineligible person or for an ineligible period.

Insurance premiums 

If you had insurance when you retired and started your pension right away, your Life and Dependents insurance coverage (if applicable) will continue at reduced amounts. No insurance premiums will be deducted while your pension is paid on an interim basis. 

Once your eligibility and coverage are confirmed, we will collect any missed premiums through a one-time pension adjustment.

Pension payment schedule

Pensions are paid by direct deposit on the second last banking day (Monday to Friday) of the month. If you retire partway through a month, you’ll get a partial payment for that month and full payments starting the next month. 

Monthly pension statements

CSSB sends monthly statements showing your pension amount and any deductions or adjustments. These are available through Online Services or by mail.

You can receive statements each month or only when there’s a change to your net pension. You can update your preferences in Online Services. 

If you’re not signed up for Online Services, a pension statement will be mailed to you only in months with a change in your pension or deductions.

Future pension adjustments

Updated service and salary: Your final pension amount will be recalculated based on the updated service and salary information we receive from your employer. This includes vacation pay. 

Insurance premiums: Premiums will be deducted retroactively to your start date. 

Bridging benefit: This benefit ends at age 65. 

Integration with CPP and OAS: Pension reductions begin at age 60 for CPP and age 65 for OAS, and continue for your lifetime. Contact Service Canada directly to apply for CPP and OAS benefits.

Inflation protection: Cost-of-living adjustments are paid in the thirteenth month after retirement and then each July. These adjustments are not guaranteed.

Income tax changes: Pension payments are taxable. Taxes are deducted based on the TD1 forms you provided and the tax rates in effect. Changes to your monthly pension or tax rates could change the amount of tax deducted. You can request increases to your tax deduction through Online Services or by contacting CSSB. If you want to decrease your tax deduction, you’ll need to provide updated TD1 forms.

Divorce or separation: If your pension must be divided after ending a relationship with your spouse or common-law partner, your pension will be adjusted.

Survivor’s pension: If you receive a survivor’s pension, the amount will be different from your spouse’s, depending on the option selected at retirement. When cost-of-living adjustments are granted, you will receive two-thirds of the adjustment.

IMPORTANT

Please keep your mailing address up to date through Online Services or by contacting CSSB. If mail is returned, we will try to contact you and update your information. Pension payments may stop if we can’t reach you.