Calculation
| Until age 65 | ||||||
|
2%
|
x
|
x
|
"Best-five" average salary
|
=
|
Basic annual pension
|
|
| CPP reduction at 65 | ||||||
|
0.45%
|
x
|
CPP credit
|
x
|
YMPE (Year's Maximum Pensionable Earnings) average or best-five salary
|
=
|
CPP reduction
|
|
(CPP reduction factor applicable for the year you turn 65)
|
(years of service in the Teachers' plan during which you also contributed to the CPP)
|
(five-year average YMPE based on when you last contributed to the Teachers' plan or your best-five average salary, whichever is lower)
|
||||
If you earn $60,000 in your five highest salary years and have 32 years of credit, your basic annual pension would be:
2% x 32 x $60,000 = $38,400
Integration with the Canada Pension Plan (CPP)
You contribute less to the Teachers' pension plan on earnings covered by the CPP ($50,100 for 2012) and your Teachers' pension is reduced to partially recognize benefits payable from CPP.
You can take an unreduced CPP retirement pension at age 65, or a reduced CPP retirement pension after age 60. Regardless of when you start your CPP retirement pension, at age 65 we'll reduce your Teachers' pension by an amount less than your unreduced CPP retirement pension. If you begin receiving a CPP disability pension, your Teachers' pension is reduced immediately.
Reduced retirement pension
You're eligible for a reduced pension when you are at least 50 and have two or more qualifying years of service. Your reduced pension is calculated just like a regular retirement pension, and then reduced by a 2.5% or 5% reduction formula.
How we measure service and credit
The length of your teaching career affects the amount of your pension and when you are eligible to receive it. We measure your plan membership in two ways:
1. Credit
This is the actual number of years, months, and days you have worked and contributed to the plan. We use this figure to calculate the amount of your pension.
2. Qualifying years
This is the number of school years in which you have taught for at least a portion of the year. Qualifying years determine when you're eligible to receive a pension. Because of changes in the plan, there are different rules for measuring your qualifying years.
Measuring your qualifying years
| For the school years | Days of work needed for one qualifying year |
| after January 1, 1997 | more than 10 days |
| September 1, 1990 to January 1, 1997 |
more than 20 days |
| before September 1, 1990 | any credit |
| Exceptions: When purchasing credit for an absence, qualifying service is only counted if you purchase the full amount eligible otherwise qualifying service is counted in actual time. Also, if the first or last year of your teaching career is a partial year, you will receive credit for the portion of the year worked. | |
Qualifying factor
Your age plus qualifying years is your qualifying factor. It is used to determine when you're eligible for an unreduced pension, and to calculate an early retirement reduction. For example, Jane is eligible for an unreduced pension because her age plus qualifying years of service equal 85:
53 years of age + 32 years qualifying years of service = 85 factor