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Teachers' > Near Retirement > Information

TPP Pension Timeline—Near Retirement Information

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?

Under the Teachers' Pension Plan, you may apply for a pension as early as age 55.

Can I retire early?

If you retire before age 61 and, in some cases, as late as age 64, and you do not meet minimum age and contributory service requirements, your pension will be reduced.

What are unreduced and reduced pensions?

For pensionable service earned before January 1, 2018, your pension will be unreduced if you are:

  • Age 55 to age 59 and your age plus years of all contributory service totals at least 90 years (known as the rule of 90)
  • Age 60 up to age 64 with two or more years of contributory service
  • Age 65 or older

For pensionable service earned on and after January 1, 2018, your pension will be unreduced if you are:

  • Age 55 up to age 61 if you have at least 35 years of contributory service
  • Age 61 up to age 65 if you have at least two years of contributory service
  • Age 65 with no minimum contributory service requirement

For pensionable service earned before January 1, 2018, your pension will be reduced as follows:

  • If you are at least age 55 and you retire before age 60 with 10 or more years of pensionable service (and you have 20 or more months of contributory service, or 10 or more months of pensionable service in the 24 months immediately before your termination date), your pension will be reduced by the lesser of two calculations:
    • 3% per year for every year under age 60, or
    • 3% per year for every year your age plus contributory service is less than 90 (both to a maximum reduction of 15%)
  • If you do not meet the above criteria, your pension will be reduced by the lesser of two calculations:
    • 5% per year for every year under age 60, or
    • 5% per year for every year your age plus contributory service is less than 90 (both to a maximum reduction of 25%)
  • If you are at least age 55 but under 60 and you retire before you have two years of contributory service, your pension will be reduced by 5% per year for every year under age 65 (to a maximum reduction of 50%)
  • If you terminate employment after age 60 and before age 65 with fewer than two years of contributory service, your pension will be reduced 5% per year for every year under age 65 (to a maximum reduction of 25%)

For pensionable service earned on and after January 1, 2018, your pension will be reduced as follows:

  • If you retire before age 61 with fewer than 35 years of contributory service, your pension will be reduced 4.5% for every year you are younger than 61, providing you have at least two years of contributory service
  • If you retire before age 65 with fewer than two years of contributory service, your pension will be reduced 4.5% for every year you are younger than 65

For more information see the PensionFacts Your pension payment.

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 Teachers' Pension Plan.

For more information see the Pre-retirement death benefits PensionFacts.


Pension Estimates

How is a pension calculated?

Your pension—based on the average of your highest five salary years—increases for each year of pensionable service. You can earn a maximum of 35 years of pensionable service up to and including December 31, 2017. On and after January 1, 2018, there is no limit to the pensionable service you can earn. An unreduced basic pension benefit is calculated as follows:

For pensionable service earned before January 1, 2018

Monthly benefit until age 65 = bridge benefit + basic lifetime pension. Monthly benefit at and after age 65 = basic lifetime pension.

  • A. Bridge benefit: 0.7% HAS up to YMPE x years of service before 2018
  •  
  • B. Basic lifetime pension: (1.3% HAS up to YMPE) + (2.0% HAS exceeding YMPE) years of service before 2018

For pensionable service earned on and after January 1, 2018

  • C. Basic lifetime pension (1.85% HAS) years of service after 2017

On retirement, until age 65, your pension is made up of A, B and C. At and after age 65, your pension is made up of B and C.

The basic pension formula is based on the single life pension, with no guarantee period.

For more information see the PensionFacts Your pension payment.

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. Also, there is a personalized online pension estimator available from the My Account page on this website.

What can I do now to increase my pension?

If you took a break from your job you may be able to purchase or get credit for that period of service so your pension is not affected.

See the Purchase of service and arrears for part-time members, Purchasing leaves of absence and Claiming credit for child-rearing PensionFacts for more information.


Steps to Take

I'm ready to retire. What do I have to do?

When you are within 90 days of retirement, you should request a pension estimate from the Teachers' Pension Plan.

You must make your request in writing and include:

  • your full name, mailing address, work and home telephone numbers, social insurance number and date of birth,
  • your spouse's name and date of birth (please state if you do not have a spouse),
  • the name of your employer, and
  • your estimated retirement date (last day of pay).

Include clear photocopies of any proof-of-age documents for you and, if applicable, your spouse. Once your request is received, we will send you a retirement kit containing everything you need to apply for your pension.

How do I choose a pension?

As a retiring member you have a number of pension options to consider. These are detailed in the Choosing Your Best Pension Option booklet

The Teachers' 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. Click here to learn more, view the most current seminar schedule and register manually or online.

 

Approaching Retirement

For members nearing retirement, this workshop can help you understand the important decisions you need to make about your pension as retirement approaches. Learn more, including how to register and view the complete workshop schedule!

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