Guide for plan members
College Pension Plan is committed to helping you make the most of your pension. This guide is a provincial requirement. Please use the links at right to explore the topics most relevant to you.
Your monthly pension payment may increase as a result of an annual cost-of-living adjustment (COLA). This adjustment may be added to your pension to help it keep pace with increases in the cost of living over time.
COLAs are not guaranteed. They are based on:
- Changes in the Canadian consumer price index (CPI) over a 12-month period from November to October
- The funds available in the inflation adjustment account of BC's College Pension Plan
- The COLA cap. The COLA cap is the maximum amount that can be applied in any given year. The COLA cap is set by the College Pension Board of Trustees following each actuarial analysis of the inflation adjustment account. Having a cap ensures that COLAs, which are not guaranteed, remain sustainable for the long term.
Once a COLA is granted, it becomes part of your lifetime pension. The COLA is also applied to the bridge benefit and the temporary annuity portion of your pension, if applicable.
See the most recent winter issue of Pension Life to find out if a COLA will be applied and, if so, its percentage. You can check your January pension statement to find out how the COLA may increase your monthly pension payment for the coming year.
Cost-of-living adjustment history
Retirement health coverage and you
When you retire, any extended health care or dental coverage you were receiving through your employer will stop. However, you can apply for extended health care and dental coverage when you apply for your pension.
This optional coverage is provided through the College Pension Plan's insurance carrier, Green Shield Canada, and gives you access to competitive group rates. As a result, if you choose to apply for retirement health coverage through the plan, you may pay lower rates than if you purchased these benefits on your own.
Your spouse and/or eligible dependants can also be covered under the extended health care and dental plans.
If you do not enrol when you apply for your pension, you can only enrol later on if you've had continuous coverage in a different extended health care and/or dental plan since your retirement date.
Extended health care
This supplemental plan extends your medical coverage beyond that provided by the Medical Services Plan of BC and other provincial health plans. It covers part of the cost of prescription drugs, vision care, hearing aids, medical aids and supplies, as well as some services.
There are monthly premiums, yearly deductibles and lifetime limits associated with the extended health care plan.
The dental plan covers part of the costs associated with preventive and restorative dental services. There are two dental plans to choose from, with different monthly premiums, yearly deductibles and eligible services for each.
How premiums are paid
You must pay monthly premiums to receive extended health care and dental coverage. Premiums are deducted from your pension payment. If your pension is not large enough to cover the premiums, you can arrange to pay Green Shield Canada directly through pre-authorized debit.
These benefits are not guaranteed
The extended health care and dental coverage offered by the College Pension Plan is not guaranteed – your coverage, premiums and deductibles may increase, decrease or be eliminated.
Returning to work after retirement
You may decide to return to work after you have retired and are receiving a pension from BC's College Pension Plan. If this is the case, you will continue to receive your pension.If you start working for an employer participating in the plan, let your employer know you are a retired plan member. This will ensure your employer does not re-enrol you in the plan and deduct pension contributions from your pay.
If your new employer participates in a different pension plan, you may be eligible to contribute to that plan. Talk to your new employer for details.
Death and your pension
When you die, your pension can provide financial support for your family and other people or organizations important to you. BC's College Pension Plan may pay a death benefit (a monthly amount or lump-sum payment) to your spouse or other beneficiaries you've named.
The amount of the death benefit depends on the following factors:
- Your age at death
- If you die before you retire
- Who you named as beneficiary
Shortened life expectancyIf you are an active member of the plan and have a shortened life expectancy, you may be able to access your pension benefit early. Contact the plan for more information.
If you die before you retire
If you die before you retire and have pension contributions in the plan, your beneficiary (or beneficiaries) will be paid a death benefit.Your spouse is automatically your beneficiary unless they waived their right to a pre-retirement death benefit. If you die before you retire and your spouse is your beneficiary, your age determines your spouse's options:
- If you die before the earliest retirement age of 55, your spouse is eligible for one of the following:
- an immediate monthly pension, payable for their lifetime
- a lump-sum payment equal to the greater value of your contributions with interest or the commuted value of your pension benefit
- If you die after age 55, your spouse is only eligible to receive an immediate monthly pension, payable for their lifetime
If you do not have a spouse or your spouse has given up their right to a pre-retirement death benefit, your named beneficiary (or beneficiaries) will receive a death benefit equal to the greater of:
- Your contributions with interest
- The commuted value of your pension benefit
If you do not have a spouse and have not named a beneficiary through the plan or in your will, the pre-retirement death benefit is paid to your estate.
If you die after you retire
Depending on the pension option you chose when you retired, your pension may be paid to your beneficiary (or beneficiaries) as a monthly pension for a set period (or their lifetime) or as a lump-sum payment.
For example, if you chose:
- A single life pension with a guarantee period, and you die before that period expires – your monthly pension will continue to be paid to your beneficiary (or beneficiaries) until the end of the guarantee period, or they may choose to receive a lump-sum payment
- A joint life pension with a guarantee period, and you die before that period expires – your monthly pension will be paid to your spouse until the end of the guarantee period, after which the joint life percentage you selected (either 60% or 100%) will be paid to your spouse for their lifetime
If your beneficiary is an organization, any remaining monthly pension payments will be paid to the organization as a lump sum.
Your spouse and dependent children may be eligible for extended health care and dental coverage through the plan after your death. Certain conditions apply, and coverage is not guaranteed.
Paying death benefits to a former spouse
If you and your former spouse had a complete, signed separation agreement or registered court order outlining how to divide your pension, we will follow those terms when paying any death benefits.
Looking for more detail? These links will help you