PSSA to CFSA Pension Transfer and Questions

[KanD]

I am a Federal public servant at the top of my classification and salary band level, and in the final stages of a DEO intake with the CAF.

If I accept the offer - will just have enough time in service with the CAF to make the full 25 years of required pensionable service by the time I reach 65 years of age.

With this, I am having a hard time finalizing my decision on the DEO offer due to the pension element. My understanding is that the CFSA and PSSA are different, but their back ends are similar.

If I join the CAF and buy back my PSSA pensionable service, will my top 5 years under the PSSA be utilized to calculate my CFSA pension after 25 years? I am doubtful that I will reach my current comparable salary/rank in the CAF given my current age and time left until retirement, and my potential performance in the CAF.

Edit: typos and made it less pretentious.

 

[Good2Golf]

@dapaterson

 

[dapaterson]

So... It's a complex. I would have to dig in a bit, but I believe your best five must be CFSA pensionable service, and not Other pensionable service transferred in.

However, you are limited to 35 years of pensionable service combined between the PSSA and CFSA. From your post you are about 40 now; so you presumably have about 15 years under the PSSA. Regardless of whether you keep that under the PSSA or transfer to the CFSA, once you reach 35 years total, CFSA + PSSA, you drop to the 1% contribution rate. Unless you take a transfer value for your PSSA amount, which resets the clock (but has a wide array of other implications).

Finally, current mandatory retirement age in the CAF is 60, not 65. While extensions are possible, they are not guaranteed.

 

[KanD]

So... It's a complex. I would have to dig in a bit, but I believe your best five must be CFSA pensionable service, and not Other pensionable service transferred in.

However, you are limited to 35 years of pensionable service combined between the PSSA and CFSA. From your post you are about 40 now; so you presumably have about 15 years under the PSSA. Regardless of whether you keep that under the PSSA or transfer to the CFSA, once you reach 35 years total, CFSA + PSSA, you drop to the 1% contribution rate. Unless you take a transfer value for your PSSA amount, which resets the clock (but has a wide array of other implications).

Finally, current mandatory retirement age in the CAF is 60, not 65. While extensions are possible, they are not guaranteed.

Thank you for this.

If I enrolled today, I would have exactly 8 years of pensionable service under the PSSA and would be limited to 20 years of CAF service before I am shown the door with the 60 year mandatory retirement.

I suppose it now comes down to whether I prefer the CAF career and job in my last twenty years or muddling for another 27 years under the PSSA for a full pension.

 

[dapaterson]

Looking briefly at your posting history, you are also in part I.1 right now; that will add additional complexity. I strongly recommend calling the CFSA line and asking questions about the implications should you join the Reg F. On entry to the Reg F your part I.1 automatically rolls over into the CFSA part I, which would overlap with your PSSA, an should be, to use the formal technical term, very messy.

Explain to the folks that you are PSSA and CFSA part I.1 and considering joining the Reg F and entering part I.

 

[KanD]

Looking briefly at your posting history, you are also in part I.1 right now; that will add additional complexity. I strongly recommend calling the CFSA line and asking questions about the implications should you join the Reg F. On entry to the Reg F your part I.1 automatically rolls over into the CFSA part I, which would overlap with your PSSA, an should be, to use the formal technical term, very messy.

Explain to the folks that you are PSSA and CFSA part I.1 and considering joining the Reg F and entering part I.

Thanks - I’m no longer under the I.1 as a released from the reserves in 2021.

 

[RocketRichard]

So... It's a complex. I would have to dig in a bit, but I believe your best five must be CFSA pensionable service, and not Other pensionable service transferred in.

However, you are limited to 35 years of pensionable service combined between the PSSA and CFSA. From your post you are about 40 now; so you presumably have about 15 years under the PSSA. Regardless of whether you keep that under the PSSA or transfer to the CFSA, once you reach 35 years total, CFSA + PSSA, you drop to the 1% contribution rate. Unless you take a transfer value for your PSSA amount, which resets the clock (but has a wide array of other implications).

Finally, current mandatory retirement age in the CAF is 60, not 65. While extensions are possible, they are not guaranteed.

Good response. Especially regarding CRA. Although I’ve heard of most extensions to 65 being granted in the PRes. Of course YMMV.