FREQUENTLY ASKED QUESTIONS
Pension plan, pay and benefits of departing Members of
Parliament and during dissolution of Parliament
Members of Parliament Pension Plan
Are all departing Members entitled to a pension?
Members must have accumulated at least 6 years of pensionable service upon their departure in order
to be entitled to a pension upon retirement. Members with less than 6 years of pensionable service are
entitled to a withdrawal allowance, equal to a return of their contributions to the Members of
Parliament Pension Plan, plus interest.
At what age can Members receive their retirement allowance?
Members who have accumulated at least 6 years of pensionable service may receive an unreduced
retirement allowance, as follows:
at age 55 for pensionable service accumulated before December 31, 2015; or
at age 65 for pensionable service accumulated as of January 1, 2016.
Note: Members may choose to start receiving a retirement allowance once they reach age 55, but the
allowance will be reduced by 1% for each year that the Member is under 65.
What is the established pension amount for retired Members?
Benefits paid under the pension plan are calculated using a formula that is based on the participant’s
pensionable service and annual pensionable earnings over the five consecutive years of highest-paid
pensionable service. The current benefit accrual rate is 3% per year of service. Benefits for pensionable
service accumulated as of January 1, 2016, have been coordinated with the Canada Pension Plan (CPP)
and the Québec Pension Plan (QPP). Therefore, a participant’s retirement allowance will now consist of
several separate components.
For more information on the formula used to calculate Members’ benefits, please see the
Report on the
Administration of the Members of Parliament Retiring Allowances Act for the Fiscal Year Ended
March 31, 2020 (section “Plan Benefits”) on the Government of Canada website.
What happens to a former Member’s pension if they get re-elected ?
Members who are appointed to the Senate or re-elected to the House of Commons will cease receiving
pension benefits under the Members of Parliament Pension Plan as of the date of their appointment or
election. They are required to contribute to the pension plan for as long as they remain in office. Upon
their resignation, their pension benefits will be recalculated to reflect the additional pensionable
service. Members who received a withdrawal allowance for prior service will have the option to buy
back their previous service upon their re-election.
Do Members continue to contribute to the pension plan during an election?
Yes, contributions will continue to be deducted during dissolution, as this period counts as pensionable
service.
Pay and Allowances
Are Members paid during an election?
Yes, Members continue to receive their sessional allowance during dissolution. The last day of
remuneration for Members not seeking re-election or those not re-elected will be on Sunday,
September 19.
Are Members entitled to a severance allowance?
In order to be entitled to a severance allowance, Members must meet one of the following criteria:
they cease to be a Member after the dissolution of Parliament and are not entitled to a pension
under the Members of Parliament Pension Plan;
they cease to be a Member after the dissolution of Parliament, are entitled to a pension under
the Members of Parliament Pension Plan, but are under the age of 55; or
they are resigning during Parliament because of an illness or a disability (subject to the approval
of the Speaker of the House).
What is the amount of severance that Members are entitled to?
In most cases, the severance allowance is equal to 50% of the sessional allowance that Members are
eligible to receive (plus any additional salary to which they may be entitled) as of the date of the general
election. For Members who are entitled to a pension and are six months or less away from turning 55
upon ceasing to be a Member, their severance will be reduced based on the number of days remaining
until their 55th birthday.
Are there any transition support measures in place to help Members who did not seek
re-election or who were not re-elected?
Members who are transitioning from parliamentary life after the election have access to an allocated
amount of $15,000 to help them re-establish themselves. This support includes career transition
services; financial, retirement and re-employment counselling; and education and training.
Benefits
Are Members covered under their insurance plans during dissolution? What happens if they are
not re-elected?
Health, dental and life insurance coverage continues throughout dissolution. Coverage for Members not
seeking re-election or those not re-elected is impacted as follows:
Life insurance
All lines of insurance under the Public Service Management Insurance Plan (PSMIP) will end on election
day. However, Members will have 60 days to convert this life insurance to a commercial policy with
Industrial Alliance.
Medical insurance
The current medical coverage under the Public Service Health Care Plan (PSHCP) will end on the last day
of the month following the month during which a Member ceases to be a Member. Members with at
least 6 years of service will have the option to continue to be covered for certain benefits and hospital
provisions not otherwise covered under their provincial/territorial health care plan by maintaining their
coverage under the PSHCP and paying the associated monthly premiums.
Dental insurance
The current dental coverage under Canada Life will end on election day. Members with at least 6 of
service will have the option to maintain dental insurance coverage by joining the Pensioners’ Dental
Services Plan (PDSP). The PDSP is an optional dental insurance plan administered by Sun Life Financial.
Until when do departing Members have access to EFAP?
The Employee and Family Assistance Program is provided by Homewood Health and is designed to
provide Members, their employees and families with counselling, coaching and support for up to 1 year
following the election.
Additional information
For more information on the pension plan, pay and benefits of departing Members and during
dissolution of Parliament, please refer to the following documents:
the Dissolution of Parliament chapter in the Members’ Allowances and Services Manual
(MAS);
Treasury Board Secretariat’s Report on the Administration of the Members of Parliament
Retiring Allowances Act;
The Members of Parliament Retiring Allowances Act; and
the Canada Gazette for the contribution rates for the Members of Parliament Pension Plan.
For more information:
Heather Bradley
Director of Communications
The Speaker’s Office
613-995-7882
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