Returning to work after retiring is a personal decision. Some retirees return for financial reasons, while others do so because they enjoy working or want to explore new opportunities.
Before making that decision, it’s important to understand how returning to work may affect your PSSP pension and other sources of retirement income, such as the Canada Pension Plan (CPP), the Old Age Security (OAS) program, and/or the Guaranteed Income Supplement (GIS).
Returning to work with a PSSP employer
If you are considering returning to work with an employer who participates in the PSSP, it is important to understand how this may affect your pension.
If the position is eligible for participation in the PSSP, your pension payments must stop, and you will begin contributing to the Plan again while earning additional pensionable service.
Before starting work, we encourage you to speak with the employer and advise them that you are currently receiving a PSSP pension.
When you retire again, your pension will be recalculated to reflect your additional service and updated earnings.
Returning to work with a non-PSSP employer
If you return to work with an employer who does not participate in the PSSP, you can continue to receive your PSSP pension while earning employment income.
Important: Pension contributions must stop at age 71
Age 71 is the latest age at which pension contributions are allowed under the Income Tax Act (ITA). Under the ITA, pension contributions must stop by November 30 of the year you turn 71, and your pension must begin no later than December 1 of that same year.
If you are considering returning to work, we encourage you to contact us so we can explain how it may affect your pension.