What happens to my pension when I medically release?

When you medically release from the Canadian Armed Forces, your pension is calculated based on your pensionable service and salary — the same as any other release. Key points about your CAF pension after medical release: - Your pension is not reduced because of a medical release - If you have at least 2 years of pensionable service, you can typically start receiving your pension immediately - If you are under age 55, your pension may be reduced based on your age — but if your release is related to a medical condition, different rules may apply - Your pension is taxable income - You can transfer your pension to another employer's plan or a locked-in retirement account under certain conditions Your pension is separate from VAC disability benefits. VAC benefits like Pain and Suffering Compensation are tax-free and are not reduced by your pension. SISIP/CAF LTD is also separate — it is an insurance benefit, not a pension. SISIP is reduced by the amount of your CAF pension.