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Life & Career Events

A commuted value (CV) is the estimated lump sum dollar amount you'd need today to pay for your future pension. It's based on a number of factors, including:

  • your age,
  • your pension amount,
  • your qualifying years, and 
  • bond yields.

You can transfer your pension's CV to a locked-in retirement account (LIRA) to provide you with a life annuity or life income fund (LIF) starting no earlier than age 50.

You must terminate employment and request a transfer before you're eligible for an immediate pension. This means you can request a transfer up until the earlier of:

  • the month before you turn 50; or
  • the date on which you're approved for a disability pension.

Note: If you ceased employment in education before July 1, 2001, different deadlines and eligibility rules apply. Please contact us for more information on your benefit options.

How do changes in bond yields affect the CV?

The interest rates and inflation rates used in calculating the CV are determined by real return federal bond yields, and provincial and corporate bond indices. Real return bonds are long-term bonds that pay the holder of the bond a specific sum of money, at a specific interest rate, plus the rate of inflation. When the yields of those bonds increase, the CV decreases; when they decrease, it increases.