Pension Benefits

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When can I retire with an unreduced pension?

You can retire with an unreduced pension (normal retirement) when you reach pensionable age.

You reach pensionable age when:

-you are age 60 and have at least 30 years of eligibility service, or

-the later of:

  • age 65,
  • the age at which you have completed two years of eligibility service, or
  • the age at which you would have completed two years of Plan membership assuming that your Plan membership continues.

When can I retire with a reduced pension?

You can retire with a reduced pension (early retirement):

-up to 10 years before you are entitled to an unreduced pension.

What are my pension options?

Clear
With less than two years of eligibility service and Plan membership

Under age 55

  • a deferred unreduced pension, payable at age 65,
  • a deferred reduced pension, payable at age 55, or
  • the commuted value of your pension benefit:
    • payable in a lump sum with income tax deducted at source, or
    • transferred to a non locked-in registered retirement savings plan.

Age 55 to 64

  • a deferred unreduced pension, payable at age 65,
  • an immediate pension reduced by 5% x (65 minus your age), or
  • the commuted value of your pension benefit:
    • payable in a lump sum with income tax deducted at source, or
    • transferred to a non locked-in registered retirement savings plan.

Age 65 and over

  • a deferred unreduced pension, payable at the age at which you would have completed two years of Plan membership assuming your Plan membership had continued,
  • an immediate pension reduced by 5% x (2 minus eligibility service), or
  • the commuted value of your pension benefit:
    • payable in a lump sum with income tax deducted at source, or
    • transferred to a non locked-in registered retirement savings plan.
With at least two years of eligibility service or Plan membership, but less than 25 years of eligibility service

Under age 55

Age 55 to 64

  • a deferred unreduced pension, payable at age 65, or
  • an immediate pension reduced by 5% x (65 minus your age).

Age 65 and over

  • an immediate unreduced pension.
With at least 25 years of eligibility service or Plan membership, but less than 30 years of eligibility service

Under age 55

Age 55 to 59

  • a deferred unreduced pension, payable at age 65, or
  • an immediate pension reduced by the greater of:

Age 60 to 64

  • a deferred unreduced pension, payable at age 65, or
  • an immediate pension reduced by the lesser of :
    • 5% x (65 minus your age) or
    • 5% x (30 minus your eligibility service).

Age 65 and over

  • an immediate unreduced pension.
With at least 30 years of eligibility service

Under age 50

Age 50 to 59

  • a deferred unreduced pension, payable at age 60, or
  • an immediate pension reduced by 5% x (60 minus your age).

Age 60 and over

  • an immediate unreduced pension.

How is my pension calculated?

Your pension is calculated using a pension formula, which considers:

Here is how the pension formula works:

If your HAE is less than the AMPE:

Lifetime pension Bridge benefit
Before age 65 1.3% x HAE x pensionable service plus 0.7% x HAE x pensionable service
After age 65 1.3% x HAE x pensionable service No longer paid

If your HAE is greater than the AMPE:

Lifetime pension Bridge benefit
Before age 65 1.3% x AMPE x pensionable service
plus
2.0% x (HAE - AMPE) x pensionable service
plus 0.7% x AMPE x pensionable service
After age 65 1.3% x AMPE x pensionable service
plus
2.0% x (HAE - AMPE) x pensionable service
No longer paid

How is an unreduced pension calculated?

Here is a normal retirement example for a full-time employee and a part-time employee.

Normal retirement (Unreduced pension)

Full-time employeeExample 1Example 2
Age at retirement6065
Eligibility service (in years)3020
Pensionable service (in years) 3020
Retirement date October 7, 2022 October 7, 2022
HAE $60,000 $60,000
AMPE $59,700 $59,700
Lifetime pension
59,700 x 1.3% $776.10 776.10
(60,000 - 59,700) x 2% 6.00 6.00
782.10 782.10
Total lifetime pension 782.10 x 30 = 23,463.00 782.10 x 20 = 15,642.00
Bridge benefit
59,700 x 0.7% 417.90not eligible
Total bridge benefit 417.90 x 30 = 12,537.00
Total annual pension benefit 23,463.00 + 12,537.00 = $36,000 $15,642.00
Part-time employee
(working half the hours of a full-time employee)
Example 1Example 2
Age at retirement6065
Eligibility service (in years)3020
Pensionable service (in years) 1510
Retirement date October 7, 2022 October 7, 2022
HAE $60,000 $60,000
AMPE $59,700 $59,700
Lifetime pension
59,700 x 1.3% $776.10 $776.10
(60,000 - 59,700) x 2% 6.00 6.00
782.10 782.10
Total lifetime pension 782.10 x 15 = 11,731.50 782.10 x 10 = 7,821.00
Bridge benefit
59,700 x 0.7% 417.90not eligible
Total bridge benefit 417.90 x 15 = 6,268.50
Total annual pension benefit 11,731.50 + 6,268.50 = $18,000 $7,821.00

How is a reduced pension calculated?

Here is an early retirement example for a full-time employee and a part-time employee as well as a reduced pension estimation table.

Early retirement (reduced pension)

Full-time employeeExample 1Example 2
Age at retirement5862
Eligibility service (in years)3026
Pensionable service (in years) 3026
Retirement date October 7, 2022 October 7, 2022
HAE $60,000 $60,000
AMPE $59,700 $59,700
Lifetime pension
59,700 x 1.3% $776.10 $776.10
(60,000 - 59,700) x 2% 6.00 6.00
782.10 782.10
Total lifetime pension 782.10 x 30 = 23,463.00 782.10 x 26 = 20,334.60
Bridge benefit
59,700 x 0.7% 417.90 417.90
Total bridge benefit 417.90 x 30 = 12,537.00 417.90 x 26 = 10,865.40
Total unreduced pension 23,463.00 + 12,537.00 = 36,000 20,334.60 + 10,865.40 = 31,200
Reduction formula5% x (60 - 58) = 10%the lesser of
5% x (65 - 62) = 15% and
5% x (30 - 26) = 20%
Reduction amount 36,000 x 10% = 3,600 31,200 x 15% = 4,680
Annual reduced pension until age 65 36,000 - 3,600 = $32,400 31,200 - 4,680 = $26,520
Pension after age 65
Lifetime pension and bridge benefit $32,400.00 $26,520.00
Minus bridge benefit 12,537.00 10,865.40
Annual reduced pension after age 65 $19,863.00 $15,564.60
Part-time employee
(working half the hours of a full-time employee)
Example 1Example 2
Retirement age5862
Eligibility service (in years)3026
Pensionable service (in years)1513
Retirement date October 7, 2022 October 7, 2022
HAE $60,000 $60,000
AMPE $59,700 $59,700
Lifetime pension
59,700 x 1.3% $776.10 $776.10
(60,000 - 59,700) x 2% 6.00 6.00
782.10 782.10
Total lifetime pension 782.10 x 15 = 11,731.50 782.10 x 13 = 10,167.30
Bridge benefit
59,700 x 0.7% 417.90 417.90
Total bridge benefit 417.90 x 15 = 6,268.50 417.90 x 13 = 5,432.70
Total unreduced pension $11,731.50 + 6,268.50 = $18,000 $10,167.30 + 5,432.70 = $15,600
Reduction formula5% x (60 - 58) = 10%the lesser of
5% x (65 - 62) = 15% and
5% (30 - 26) = 20%
Reduction amount 18,000 x 10% = 1,800 15,600 x 15% = 2,340
Annual reduced pension until age 65 18,000 - 1,800 = $16,200 15,600 - 2,340 = $13,260
Pension after age 65
Lifetime pension and bridge benefit $16,200 $13,260
Minus bridge benefit 6,268.50 5,432.70
Annual reduced pension after age 65 $9,931.50 $7,827.30

Reduced pension estimation table

To easily estimate your reduced pension, multiply your unreduced pension amount (lifetime plus bridge benefit, if applicable) by the percentage found in the following table.

Years of eligibility service
Age12 - 24252627282930+
50Not eligible for early retirement50%
5155%
5260%
5365%
5470%
5550%50%75%75%75%75%75%75%
5655%55%75%80%80%80%80%80%
5760%60%75%80%85%85%85%85%
5865%65%75%80%85%90%90%90%
5970%70%75%80%85%90%95%95%
6075%75%75%80%85%90%95% 100%
6180%80%80%80%85%90%95% 100%
6285%85%85%85%85%90%95% 100%
6390%90%90%90%90%90%95% 100%
6495%95%95%95%95%95%95% 100%
65+95%100%100% 100% 100% 100% 100% 100%

Reduced pension estimation table

To easily estimate your reduced pension, multiply your unreduced pension amount (lifetime plus bridge benefit, if applicable) by the percentage found in the following table.

Years of eligibility service
Age12 - 24252627282930+
50Not eligible for early retirement50%
5155%
5260%
5365%
5470%
5550%50%75%75%75%75%75%75%
5655%55%75%80%80%80%80%80%
5760%60%75%80%85%85%85%85%
5865%65%75%80%85%90%90%90%
5970%70%75%80%85%90%95%95%
6075%75%75%80%85%90%95% 100%
6180%80%80%80%85%90%95% 100%
6285%85%85%85%85%90%95% 100%
6390%90%90%90%90%90%95% 100%
6495%95%95%95%95%95%95% 100%
65+95%100%100% 100% 100% 100% 100% 100%

How do I apply for my pension?

Contact the Pension Centre for a Retirement Kit.

When do my pension benefit payments start?

As long as all the forms are accurately completed and received by the Pension Centre during the month before your retirement date, your pension payments will start at the end of the month in which your retirement date falls.