Canadian Retirement Income Calculator - Frequently Asked Questions about Employer Pensions

Frequently Asked Questions about Employer Pensions

  1. What questions should I ask my employer?
  2. If I am in a defined benefit plan, will my pension be reduced when I reach 65?

1) What questions should I ask my employer?

The following questions are a starting point to assist you in having a better understanding of your employer pension. Given the variety of different pension plans provided by employers, the specifics of any two plans may vary substantially. Understanding the specifics of workplace pensions is a highly important component for the retirement security of many Canadians.

  1. Does my company have a pension plan, a deferred profit-sharing plan or a group Registered Retirement Savings Plan?
  2. Am I a member of this plan? If I am not a member now, can I become a member in the future?
  3. What type of plan do I have (defined benefit, defined contribution, deferred profit-sharing plan or group Registered Retirement Savings Plan)?
  4. Who contributes to the plan? Who is responsible for investing the contributions? What happens if there are investment losses?
  5. At what age can I start to receive my employer pension? Can I take an early retirement? If so, will my pension be reduced and by how much?
  6. If I am in a defined benefit plan, can I get an estimate of my future pension?
  7. Is my pension protected against inflation? If so, is it partially or fully protected?
  8. Does my pension have survivor and/or death benefits?
  9. Will my pension be affected by a leave of absence for raising children or disability?
  10. What happens to my pension if I change employers?

2) If I am in a defined benefit plan, will my pension be reduced when I reach 65?

It is important to find out from your employer if your defined benefit pension will be reduced at the age of 65. By learning about any possible reduction, you can avoid unwanted surprises and be that much better prepared for retirement.

While your employer pension may be reduced, your Canada Pension Plan retirement pension is never reduced once started and is increased based on inflation.

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