What constitute an earning?

Pension income resulting from any employment constitutes earnings for benefit purposes. These include:

  • Employer pension plans, including employment as a member of the Armed Forces or any police force. This also applies to pensions from employment in another country, whether or not the employment was insurable.
  • The Canada Pension Plan
  • The Quebec Pension Plan

Pensions income resulting indirectly from employment do not always constitute earnings. In the following cases, all or part of the pension is not considered to be earnings:

  • The pension of an individual who requalifies for EI benefits after the date on which payment of the pension begins.
  • Disability pensions from employment as well as disability pensions from the Canada Pension Plan or Quebec Pension Plan

The following pensions do not arise from your employment and, for that reason, do not constitute earnings for EI benefit purposes:

  • Money received from Old Age Security and Guaranteed Income Supplement.
  • Personal Pension Plans such as a Registered retirement savings plan (RRSP) or a Registered retirement income funds (RRIF).
  • Additional Voluntary Contributions (AVC) to a pension fund.
  • Survivor’s pensions or dependant’s pensions.
  • The portion of the pension payable to you as a spouse — in the case of legal separation or divorce.
  • Veteran’s pensions from the Department of Veterans Affairs.

The following pension earnings are not considered payable until the pension or annuity arising from these pension credits becomes payable:

  • Pension credits left in a pension plan to support a deferred pension or used to purchase an annuity. These pension credits are not considered as earnings for EI benefit purposes until the person applies for the deferred pension or the deferred annuity becomes payable.
  • Pension credits transferred by the employer to a locked-in, non-commutable RRSP, such as a Locked-in Retirement Account (LIRA) in Manitoba or a Compte de Retraite Immobilisé (CRI) in Quebec that is locked in and non-commutable until retirement age. These pension credits are not considered as earnings for EI benefit purposes until an annuity is purchased with the proceeds from the account.
  • Pension credits transferred to the pension fund of another employer if the new pension plan permits this transfer. The pension credits are not considered as earnings for EI benefit purposes until a pension arises from the new pension plan.

How will EI deduct my pension earning?

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(source: Service Canada website)