Early retirement

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


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, 2018. This benefit is designed to bridge the gap between your early retirement income and your income after you turn 65, which may also include Canada Pension Plan and old age security benefits. The bridge benefit ends when you turn 65 or die, whichever happens first.

For pensionable service earned on and after April 1, 2018

There is no bridge benefit for pensionable service earned on and after April 1, 2018.

For pensionable service earned between April 1, 2006 and March 31, 2018, inclusive

The bridge benefit is calculated as follows:

0.35% x (lesser of previous year's maximum pensionable earnings [YMPE] or highest average salary) x pensionable service

For pensionable service earned before April 1, 2006

The bridge benefit is calculated as follows:

0.65% x (lesser of previous YMPE or highest average salary) x pensionable service
 

For example, if you retired in 2006 at age 60 with 25 years of pensionable service and earnings averaging $67,000 in your five highest salary years, your bridge benefit is calculated as:

0.65% x (YMPE for 2005 of $41,100) x 25 = $6,678.75

This means you will receive a bridge benefit of $6,678.75 annually on top of your basic pension until you turn 65 or die. (On your Member's benefit statement, the bridge benefit is calculated as a monthly payment.)

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


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IMPORTANT plan changes:

Board Communique: March 16, 2018