As you get closer to retirement, you will be asked to make a number of decisions
and choices regarding your pension. The resources in this section may help.
Retirement Age
When can I retire?
Earliest retirement age for most Municipal employees is 55. However, for police
officers and firefighters the earliest retirement age is 50. Thus, earliest
retirement age is expressed throughout your Plan guide as 55 (50).
Can I retire early?
Under the Municipal Pension Plan, you may apply for a pension as early as age
55 (50). However, if you retire before age 60 (55) and you do not meet minimum
age plus contributory service requirements, your pension will be reduced.
What are reduced and unreduced pensions?
You will receive an unreduced pension if, at the date of your retirement, you
are:
age 55 (50) to 59 (54) and your age plus contributory service equals 90
(80)
age 60 (55) or older, with two or more years of contributory service
age 65 (60) or older, with fewer than two years of contributory service,
providing you are a contributor to age 65 (60) or older.
You will receive a reduced pension if, at the date of your retirement, you
are:
age 55 (50) to 59 (54) with two years or more of contributory service, but
your age plus contributory service equals less than 90 (80)
age 60 (55) to 64 (59) with fewer than two years of contributory service,
provided you are a contributor to age 60 (55) or older.
What is the reduction?
If you decide to retire early and you do not have enough years of contributory
service to reach the 90 (80) factor, a reduction factor will be used to calculate
a reduced pension for you. The bridge benefit is also proportionately reduced. Your pension will be reduced by three per cent per year for every
year that your age is less than the age at which you would be eligible for an
unreduced pension with the same service, to a maximum reduction factor of 15 per cent,
if you terminate employment:
on or after July 15, 1999, with at least 10 years of contributory service,
at age 50 (45) or older, but before age 55 (50), or
at age 55 (50) or older but before age 60 (55), with at least two years of contributory service, or
at age 60 (55) or older but before age 65 (60), with fewer than two years
contributory service.
Otherwise, the reduction is five per cent to a maximum of 25 per cent.
Reductions are pro-rated by month for partial years.
What happens to my pension if I die before I retire?
Pre-retirement death benefits are paid to your beneficiary if you die before
you retire, or while your contributions are still on deposit with the Municipal
Pension Plan. For more information read the section on
death
before retirement in your Guide
for Plan Members.
Your pension—based on the average of your highest five salary years—increases at a rate of two per cent for each year of pensionable service, to a maximum of 35 years. If you are not in group 5 (police officers and firefighters), the basic pension formula is:
Prior to age 65
2% X Five-year Highest Average Salary (HAS) X Total Pensionable Service
At and after age 65
2% X Five-year Highest Average Salary (HAS) X Total Pensionable Service
minus the Bridge Benefit, which is calculated at:
0.7% X (lesser of previous year's YMPE or HAS) X Pensionable Service after
Jan.1, 1966
If you are in group 5, the basic pension formula is:
Prior to age 65
2.33% X Five Year Highest Average Salary (HAS) X Total Pensionable Service
At and after age 65
2.33% X Five Year Highest Average Salary (HAS) X Total Pensionable Service
minus the Bridge Benefit, which is calculated at:
0.7% X (lesser of previous year's YMPE or HAS) X Pensionable Service after Jan 1, 1966.
The basic pension formula is based on the single life pension, with no guarantee.
For more information on, and examples of, how pensions are calculated see the
Calculation
of Your Pension section of your Guide
for Plan Members.
How can I find out what my pension might be when I retire?
You can use the online
pension estimator to estimate what your pension might be, based on your
current personal information.
What can I do now to increase my pension?
If you took a break from your job, say to raise a child or to go to school,
you may be able to buy back or gain credit for that period of time and increase
your service.
See the leaves/breaks
section of your plan guide and the Purchasing
leaves of absence PensionFacts for more information on purchasing service.
Steps to Take
I'm ready to retire. What do I have to do?
When you are within one year of retirement, you should contact the Municipal
Pension Plan for a pension estimate. You must make your request in writing and
include:
your full name, mailing address, work and home telephone numbers, social
insurance number and birth date,
your spouse’s name and birth date (please state if you do not have a spouse),
the name of your employer, and
your estimated retirement date (last day of pay).
Once your request is received, you will be sent a retirement kit containing
everything you need to apply for your pension.
The Municipal Pension Plan regularly offers pension information seminars around the province. We encourage you to attend Thinking About Retiring, a seminar designed for plan members within five years of retirement.
How do I register for a retirement seminar?
Visit the Thinking About Retiring seminar web page to learn more, view the most current seminar schedule and register manually or online.
