Glossary

Continuous service

The total years you’ve worked for participating employers without a break. Temporary work suspensions or authorized leaves don’t count as breaks in service.

Commuted value

A lump sum payment equal to the present value of your accrued pension.

Deferred pension

A pension amount which is accrued under the Plan but is not currently in payment. It will start to be payable at a future date.

Normal retirement date

The age at which you can retire without reduction to your pension because of early retirement.

Registered Retirement Savings Plan (RRSP)

A retirement savings plan that you establish, and that the CRA registers. Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan. You generally have to pay tax when you receive payments from the plan.

Year's Maximum Pensionable Earnings (YMPE)

The maximum amount of earnings used to calculate Canada Pension Plan (CPP) contributions and benefits in any given year.