PSSA Elective Service Payments

For retirees eligible for an immediate annuity or who opt for an immediate annual allowance, payments for the unpaid portion for any PSSA past service election will continue to be deducted from monthly superannuation benefit cheques in the same manner as prior to retirement. In the case of PSSA participants who opt for a deferred annuity, monthly payments for elective service may also be made by sending a cheque or money order payable to the Receiver General for Canada directly to the Superannuation, Pension Transition and Client Services Sector. Elective service payments made on an installment basis are insured through additional mortality charges and therefore, in the eventuality of the death of the PSSA participant, the elective service cost is considered to be paid in full, with no further payment obligations from the survivor(s) or estate.

In view of the interest rates and mortality charges associated with the installment method of payment, PSSA participants contemplating termination of employment may wish to consider payment of all or a portion of the outstanding amount of elective service cost using funds available from termination payments.

December 10, 2015