Early retirement

Retiring before the normal retirement age will affect your pension. Here are the key points to consider.


Early retirement for ambulance paramedics

For ambulance paramedics in CUPE Local 873, the normal retirement age is 65, and for certain ambulance paramedics the earliest retirement age is 50.

Depending on when you started your service, you may be affected by up to three different plan designs. The latest plan design change became effective April 1, 2020, on a go-forward basis. Note: the rules in effect at the time you earn service will apply.

The Personalized Pension Estimator in My Account calculates your pension estimates with all the applicable plan designs.

If you are thinking about retiring before age 60, please note:

  • You will receive a reduced pension if you do not meet the minimum age and service criteria for an unreduced pension
  • You will receive a bridge benefit on service earned before April 1, 2020
  • You can buy a temporary annuity (full or half) to supplement your retirement income until you turn 65 or die, whichever happens first

When you retire, any extended health care and dental coverage you were receiving through your employer will stop. However, you can apply for extended health care and dental coverage through the Public Service Pension Plan when you apply for your pension.

Calculating your reduced pension

Under the new plan rules, you can now retire as early as age 50, regardless of your service. Reduction factors may apply.

Before the plan rule change, you could only retire as early as age 50 if you had at least 10 years of service.

Under the new plan rules, if you have 10 or more years of contributory service in total, you can retire as early as age 55 with an unreduced pension. Before the plan rule change, you had to have at least 25 years of service to retire at age 55 with an unreduced pension.

The easiest way to learn how your pension will be calculated is to use the Personalized Pension Estimator in My Account. You can save up to 10 different estimates, allowing you to see how your monthly pension can be affected by different retirement ages. Sign in to My Account at the top of your screen.

The table below compares the retirement rules before and after the plan rule changes.

  Old rules
(applies to service before April 1, 2020)
New rules
(applies to service April 1, 2020, onward)
Less than 2 years contributory service
Unreduced early retirement age 65 60
Earliest reduced retirement age 55 50
Reduction factor 5% per year from age 65 6.2% per year from age 60
Between 2 and 10 years contributory service
Unreduced early retirement age 60 60
Earliest reduced retirement age 55 50
Reduction factor 5% per year from age 60 6.2% per year from age 60
Between 10 and 25 years contributory service
Unreduced early retirement age 60 55
Earliest reduced retirement age 50 50
Reduction factor 3% per year from age 60 or rule of 80 (85) 6.2% per year from age 55
More than 25 years contributory service
Unreduced early retirement age 55 55
Earliest reduced retirement age 50 50
Reduction factor 3% per year from age 55 6.2% per year from age 55

Calculating Your Bridge Benefit

If you retire before age 65, your pension will include a temporary monthly payment, called a bridge benefit, for pensionable service earned before April 1, 2020. The Personalized Pension Estimator in My Account will calculate your entitlement to a bridge benefit.

Up to March 31, 2006 0.65% x (lesser of previous YMPE or highest average salary) x pensionable service
April 1, 2006 to March 31, 2018 0.35% x (lesser of previous year's maximum pensionable earnings [YMPE] or highest average salary) x pensionable service
April 1, 2018 to March 31, 2020 0.65% x (lesser of previous YMPE or highest average salary) x pensionable service
April 1, 2020 and beyond No bridge benefit earned

The bridge benefit may increase because of an annual inflation adjustment.


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