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Life & Career Events

Unreduced Pension

You qualify for an unreduced retirement pension when you reach your 85 factor (age + qualifying years = 85), or at age 65. This means we don't apply any reduction factors when calculating your basic annual pension.

Until age 65, your pension is based on:

2% x Credit x "Best-five" average salary = Basic annual pension


If you earn $85,000 in your five highest salary years and have 30 years of credit, your basic annual pension would be:

2% x 30 x $85,000 = $51,000

However, once you reach age 65 OR begin collecting a disability pension from the Canada Pension Plan (CPP), your pension is adjusted based on:

(CPP adjustment factor applied the year you turn 65)
x CPP credit
(years of service in Ontario Teachers' during which you also contributed to CPP)
x YMPE average or best-five salary
(five-year average YMPE based on when you last contributed to Ontario Teachers' or your best-five average salary, whichever is lower)
= CPP adjustment

If you choose to continue to work beyond your 85 factor or age 65, you'll continue to earn credit in the plan and increase your benefit. Keep in mind that you must begin collecting your pension in December of the year in which you turn age 71.