Compensation Glossary

Bridging Supplement

A Canadian program that provides a supplemental pension to a pension plan participant who retires before age 65. The bridging supplement is generally used to integrate private pension plans with public pension plans. If a pension plan participant retires before age 65, the plan sponsor can provide a bridging supplement until the retiree turns 65 and begins to receive payments from the public pension plans. The combined benefit payment that the participant receives remains level and is the same as the participant would have received had he or she waited until the age of 65 before beginning to receive benefits. The sponsor is providing an amount in addition to the basic pension payment. Known also as a Bridging Benefit.