Pension Benefits and Options
Q9: How will the changes affect the pension situation of serving Regular Force personnel?
A9: Basically, the changes will improve the pension situation of all CF members. Once modernization is fully implemented:
Under Part 1, the vesting criteria, that is, the period required for a contributor to qualify for a pension-type benefit will be reduced to two years of pensionable service;
eligibility for pension benefits will no longer be linked to terms of service; subject to the next point below, pension eligibility will be based on pensionable service and the member's situation on release (for example, age, disabled or Force reduction) as in most other defined benefit pension plans;
contributors will be entitled to an immediate unreduced pension after 25 years of paid CF service; and
there will be the possibility of transferring the full value of the earned pension benefits to another retirement savings vehicles.
The pension modernization initiative also laid the foundation for making regulations to establish pension arrangements for Reserve Force members.
Finally, there will also be authority to make regulations allowing Regular Force members, on track for certain benefits and in specific circumstances, to choose to have their pension entitlement determined under current rules. This is called "grandfathering."