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

Reduced retirement pension

You're eligible for a reduced pension when you're at least 50 years old. Your reduced pension is calculated just like a regular retirement pension, and then reduced by a 2.5% or 5% reduction formula.