You've just started your job. It's a perfect time to get to know your pension
About Your Pension Plan
What is the Teachers' Pension Plan?
The Teachers' Pension Plan is a defined benefit plan. Your pension is
based on how many years you made contributions to the plan and the average of
your highest five years of salary (not necessarily your last five years). It
is not based on your contributions to the plan or on the performance of the
plan's assets. The advantage of this kind of pension plan is that your
pension is payable for your lifetime, and may continue for the lifetime of your
spouse or eligible dependant (depending on the option you choose at retirement).
Who runs this plan?
Your pension plan is managed by a board of trustees, who report annually to
the plan membership on plan activities and investments. The trustees are responsible
for managing the health of your plan, and make decisions on changes to benefits
and plan policies. They communicate those decisions through this website, letters
and bulletins, and through an annual report and the Report to Members.
What is the Pension Corporation?
The British Columbia Pension Corporation is one of Canada’s largest pension benefit administrators. Acting as an agent of the board, the corporation provides plan information to members and employers, manages contributions and member records, pays pension benefits and provides policy, financial and communication services to the trustees.
If you have questions about your pension account, are making
retirement decisions, or have questions as a retired plan member, you will speak
with a plan representative at the Pension Corporation. You can get more information
about the Pension Corporation here.
How do I become a member?
You are automatically enrolled in the plan if you are a teacher or administrator working for an employer covered by the Teachers' Pension Plan.
How much does it cost me? How much does it cost my employer?
To fund the plan, both you as a plan member and your employer make regular contributions
based on earned salary. As a member of the Teachers' Pension Plan, you
contribute both to this plan and to the Canada Pension Plan (CPP) through automatic
deductions from your salary. How much these contributions are depends on the
year's maximum pensionable earnings (YMPE), a salary limit set each year
by the federal government.
Employee contribution rates are currently set at:
12.50 per cent of your salary up to and including the YMPE
14.00 per cent of your salary above the YMPE
Employer contribution rates are currently set at:
12.81 per cent of your salary up to and including the YMPE
14.31 per cent of your salary above the YMPE
These rates include the employee contribution of 2.95 per cent of your pensionable earnings and the employer contribution of 3.08 per cent of your pensionable earnings that go to the Inflation Adjustment Account (IAA).The IAA is used to offset the effects of inflation.
What does the pension plan give me?
The Teachers' Pension Plan provides a regular lifetime income for plan
members who retire from work. The plan provides you with a lifetime pension,
starting when you retire (earliest retirement age is 55). After your death,
depending on what kind of pension option you choose at retirement, the plan
may continue to pay pension benefits to your spouse for his or her lifetime, or to another beneficiary
for a set period, or may pay a lump-sum payment to your estate.
As an active member after September 29, 2015, you are entitled to a pension at the earliest retirement age of 55 after you have made your first contribution to the plan.
When can I retire?
The earliest retirement age under the Teachers' Pension Plan is 55.
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 information. A personalized online pension estimator is available from the My Account page on this website.
Getting to Know Your Pension
For new and potential members, this eLearning course introduces you to the value and benefits of plan membership. Learn more and experience the convenience of eLearning!