Fact 4: Consider inflation protection vs. qualifying years

Are you considering returning to work as an occasional teacher after a lengthy break in your career? If yes, get a pension estimate first.

By returning to work, you'll add pension credit and qualifying years to the service you left in the plan. Adding qualifying years will help you reach your 85 factor earlier. However, there are other considerations. Returning to work can eliminate the inflation protection that increased your deferred pension. In some circumstances, the inflation increases could be worth more than the extra credit you'll accumulate when you return to work.

On the other hand, returning to work after a lengthy absence may have a positive impact on your pension. Your pension will be recalculated based on plan provisions in effect when you retire or leave the plan. This could, for example, lower the early retirement reduction to 2.5% from 5%.