How we calculate your pension

We calculate your pension based on your years of service and the average of your five highest years of salary.


Your pension is based on the number of years you contributed to the plan and the average of your five highest years of salary (not necessarily the last five years).

With a single life pension,  

you can choose a lifetime monthly pension payment with a guarantee period of 5, 10 or 15 years. The following formulas are used to calculate your pension based on a single life pension guaranteed for 10 years:
 

Retiring before the normal retirement age

If you retire before October 1, 2019, we calculate your pension using the following formulas:

  • #1 for pensionable service earned before April 1, 2018
  • #3 for pensionable service earned on and after April 1, 2018

If you retire on or after October 1, 2019, we calculate your pension using the following formulas:

  • #1 for pensionable service earned before April 1, 2006
  • #2 for pensionable service earned between April 1, 2006 and March 31, 2018, inclusive
  • #3 for pensionable service earned on and after April 1, 2018

Formula #1 – includes the bridge benefit

Basic lifetime pension formula with bridge benefit

Formula #2 –  includes the bridge benefit 

basic lifetime pension formula for pensionable service April 1, 2006 to March 31, 2018

Formula #3 – no bridge benefit 

basic lifetime pension calculation, no bridge benefit post April 1, 2018

Retiring at or after the normal retirement age

If you retire before October 1, 2019, we calculate your pension using the following formulas:

  • #4 for pensionable service earned before April 1, 2018
  • #3 for pensionable service earned on and after April 1, 2018

If you retire on or after October 1, 2019, we calculate your pension using the following formulas:

  • #4 for pensionable service earned before April 1, 2006
  • #5 for pensionable service earned between April 1, 2006 and March 31, 2018, inclusive
  • #3 for pensionable service earned on and after April 1, 2018

Formula #4

Basic lifetime pension formula

Formula #5 

basic lifetime pension formula April 1, 2006 to March 31, 2018

Factors that affect your monthly pension payment

These basic pension formulas are based on a single life pension option. The actual monthly pension payment you receive will depend on several other factors, including:

  • Your age when you retire, which may result in a reduced pension
  • The pension option you choose
  • The premiums you pay for health coverage through the group benefit plan
  • Any legally required deductions, such as income tax

After you retire, your monthly pension payment may increase if there is an annual inflation adjustment. This adjustment may be added to your pension and, if applicable, your bridge benefit and the temporary annuity portion of your pension, to help them keep pace with increases in the cost of living over time.
 

Inflation adjustments are not guaranteed; they are based on changes in the Canadian consumer price index and the funds available in the inflation adjustment account of BC’s Public Service Pension Plan.

Once an inflation adjustment has been granted, it becomes part of your lifetime pension for all subsequent years.


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IMPORTANT plan changes:

Board Communique: March 16, 2018