Early retirement

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

1. Calculating your reduced pension

3. Deciding whether a temporary annuity is right for you

2. Calculating your bridge benefit

4. Health and dental coverage in early retirement

Calculating your reduced pension

If you decide to retire early and do not meet the criteria for an unreduced pension, your pension will be reduced. The bridge benefit, if applicable, will also be reduced.

The reduction amount is based on a combination of your:

Age when you leave your job
Contributory service
Age when you start receiving your pension

Reductions are pro-rated by month for partial years.

For service earned up to and including December 31, 2015

For service earned up to and including December 31, 2015, your pension will be reduced by three per cent for each year you are under age 60 if you meet all of these criteria:

End your employment at age 50 or older
Have at least 10 years of contributory service
Have at least eight months of contributory service in the 24 months immediately before you ended your employment

Otherwise, your pension will be reduced by five per cent per year.

If you have less than two years of contributory service, your pension will be reduced five per cent per year for each year you are under age 65.