10-year pension guarantee option
If you die before you've been on pension for 10 years, this option provides your CPP-reduced pension to your survivor or estate for the balance of 10 years.

50% rule refund
This rule applies when survivor benefits are calculated for pre-retirement deaths. If your contributions from 1987 until your death exceed one half of your commuted value for the same period, we will refund the difference to your estate.

85 factor
See qualifying factor.

Actuarial cost
This is based on assumptions about interest, inflation and mortality rates, and salary increases. It also takes into account your age, credit and salary.

Average CPP salary
This is the lesser of your average salary or the five-year average of the maximum pensionable earnings under the Canada Pension Plan ($50,100 in 2012.)

Average salary

The average of your best-five years' salaries. If you have less than full credit in a school year, we will use your annual rate of pay unless:

• you start to receive a pension;
• you purchase credit in that school year; or
• it is your first year of employment.
  

Break in service
A break in service occurs when you resign from teaching and remain a member of the pension plan. You may be eligible to purchase credit for breaks in service due to disability.

CPP credit
The number of years of credit during which you contributed to the CPP.

CPP reduction
When you turn 65 (or earlier if you take a CPP disability pension) your Teachers’ pension will be reduced by an amount slightly less than your CPP unreduced pension.

Commuted value
The commuted value is the lump sum you would need today to replace your future pension. It is based on current interest and inflation rates.

Consumer Price Index (CPI)
CPI is a measure of inflation produced by Statistics Canada. The Teachers’ pension plan uses the CPI for Canada to calculate annual inflation adjustments to pensions and deferred pensions.

Credit
Credit is used to determine the amount of your pension, and is based on your actual teaching time.

Death after retirement
Death on or after the date of your first pension payment.

Death before retirement
Death before the date of your first pension payment.

Deferred pension
When you stop teaching, leave your vested pension in the plan and receive a deferred pension in the future. You can collect your pension any time after age 50.

Deferred survivor pension
Spouses who are eligible for an immediate survivor pension can defer it and begin receiving it in the future.

Defined benefit plan
Teachers’ is a defined-benefit pension plan. Your pension is determined by a formula, not by the return on investments.

Designated beneficiary
Any person or incorporated organization you designate to receive survivor benefits in the event that you do not have a survivor and you die before receiving your first pension payment.

Employer-approved leave
An absence your employer has pre-approved for a specified continuous period.

Equalization payment

In family law cases, a payment from one married spouse to the other to ensure that both parties receive an equal share of the net family property they accumulated during their marriage.

Immediate pension
A pension starting the month after you stop teaching.

LIF (Life income fund)
A registered retirement income fund modified to meet the requirements of the Ontario Pension Benefits Act. Payment from a LIF must start by the calendar year following its establishment, but cannot begin earlier than age 55 and must be within a prescribed range each year.

LIRA (a locked-in RRSP)

An RRSP modified to meet the requirements of the Ontario Pension Benefits Act (PBA). Under the PBA, the money can only be used:

• to purchase a deferred or immediate life annuity with payments beginning no earlier than age 50; or
• transfer to another LIRA or a registered pension plan.
  

Locked in
When your pension or LIRA is locked in, you cannot begin to receive it until you are 50. You also cannot use it as collateral for a loan or assign it to someone else.

Pension Adjustment (PA)
Canada Revenue Agency's measure of the value of the pension benefit you earn in a calendar year. PAs offset the amount of new RRSP room created each year.

Pension Adjustment Reversal (PAR)
When you receive a termination benefit from the plan and the post-1989 portion of the benefit is less than the pension adjustments (PAs) reported for the same period, a PAR will be issued for the difference.

Pension Benefits Act
A pension standards legislation for Ontario with which the Teachers' pension plan must comply.

Pregnancy and parental leave
This type of leave is defined under the Employment Standards Act. Unless teachers waive their right to contribute before beginning their leave, they continue contributing to the plan while on leave.

Prescribed Retirement Savings Arrangement
See LIRA or LIF.

Qualified teacher
A person who holds a valid Certificate of Qualification from the Ontario College of Teachers, or Letter of Permission obtained by his or her employer from the Ministry of Education.

Qualifying factor (85 factor)
Your age plus your qualifying years equal your qualifying factor. Your factor is used to determine when you’re eligible for an unreduced pension and to calculate your early retirement reduction. You can begin to receive an unreduced pension when your age plus qualifying years add up to 85.

Qualifying years

A measure of the length of your teaching career. Qualifying years are used to determine when you are eligible for a pension.

 

How qualifying years are counted:
For school years	Days of work needed for one qualifying year
as of Jan. 1, 1997	More than 10 days
Sept. 1, 1990 to Dec. 31, 1996	More than 20 days
before Sept. 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'll receive credit for the portion of the year worked.

Reduced pension
If you retire before qualifying for an unreduced pension, you can receive a reduced pension provided you're at least 50 years old. An early retirement reduction will be applied.

Separation agreement

An agreement by two people, who cohabited and have separated, on their respective rights and obligations.

Spouse

Your spouse is your married or common-law partner. A common-law partner must have lived with you in a conjugal relationship for:

 

• at least three continuous years; or
• a shorter period if you are the natural or adoptive parents of a child.

 

Your spouse is automatically entitled to survivor benefits if you are living together when you receive your first pension payment or at death if you die before you start your pension. If you retired before 1990, different rules may apply. A former spouse may also be entitled to a portion of your survivor benefits if assigned in a separation agreement or court order.

Survivor benefits
Your spouse, dependent children, beneficiary or estate are entitled to survivor benefits. The type and amount of benefits depend on your credit, the type of survivor, and whether you die before or after your first pension payment.

Teachers' Pension Plan
The Ontario legislation governing the pension plan for teachers.

Unreduced pension
You qualify for an unreduced pension when you reach your 85 factor or age 65.

Vested
When your benefits are vested, you are entitled to a future pension.