Do I have to resign from my job before I apply for my pension?
No, you can apply for your pension before you resign. Make sure you give your employer a resignation letter before your resignation date. If you're worried about us informing your employer about your resignation before you officially resign, don't be. Unless you're receiving long-term income protection (LTIP) benefits, or if you're currently on a leave, we won't contact your employer.
To ensure you don't lose any pension payments, we encourage you to apply for your pension before you resign with your employer. If you apply after your resignation date, you may lose pension payments. And remember, the resignation date on your pension application must be the same date you include in your resignation letter.
If I retire before the end of the school year, will I receive a full qualifying year of credit?
Yes, provided you work more than 10 days during the year and start your pension at the end of the school year. However, if you begin to receive your pension before the end of the school year, you'll receive a partial qualifying year up to the date your pension starts. If you are considering retiring during the school year, sign in to your Ontario Teachers' account to get a pension estimate.
I'm a part-time teacher. How does supply teaching affect my best-five average salary?
If you're close to retirement and teaching on a part-time contract, supplementing your income with an occasional supply-teaching assignment may reduce your pension. In some instances, this can result in hundreds of dollars less in pension per year.
The rate of pay for occasional teaching can be significantly less than the rate for part-time contract work. This can lower your annualized pensionable salary because both rates are used when determining your annual rate for that school year. Although the extra days increase your credit, if you're nearing retirement this can reduce your average best-five years' salary and result in a smaller pension.
If you're close to retirement, our advice is to be cautious. Contact us before accepting an occasional teaching job to see how it could affect your pension.
Once I retire, do I have to wait to return to work?
If you plan on working, your arrangement to return to work in education has to be made after your pension starts.
A resignation is considered valid only if:
- your employer confirms acceptance of your resignation without condition;
- no arrangement has been made to return to work in education; and
- you have either received or arrangements have been made to pay any applicable gratuity.
I reach my 85 factor this September. What would the impact be to my pension if I retire this June?
For some, it's better to retire in June than to wait and retire at their 85 factor a few months later. By doing this, you will take a reduction to your pension. However, you will gain extra months of pension income in July, August and September.
Use the pension calculator to help you chart the right path to retirement.
I am a 10-month employee working until June 30 but I get paid over a 12-month period until August 31. Do I have to wait until then to retire?
You do not have to wait until August to retire. If you choose to retire in June, you will continue to receive your salary throughout those last two months – it will have no effect on your pension. But remember, you must submit your resignation letter before June 30, and ensure your June 30 resignation date is also stated in your letter.