Ambulance paramedics

April 1, 2020 changes will apply to ambulance paramedics in the Canadian Union of Public Employees Local 873.

Example A: As of April 1, 2020, John is 50 years old with 20 years of contributory service. He plans to retire in five years at age 55 on April 1, 2025. He will retire with 25 years of contributory service, and his age plus years of service will equal 80.

Under the old rules, he would be able to retire with an unreduced pension because his age plus years of service satisfies the rule of 80. Under the new rules, he can retire with an unreduced pension because he has 25 years of service at age 55.

Example B: As of April 1, 2020, Mary is 40 years old with 10 years of contributory service. She plans to retire in 10 years at age 50 on April 1, 2030. She will retire with 20 years of contributory service.

Mary does not qualify for an unreduced pension. The old rules will apply to her first 10 years of service (earned before April 1, 2020). Under the old rules, her first 10 years of service will be reduced 3.0 per cent per year from age 60 for 10 years.

The new rules will apply to her last 10 years of service (earned April 1, 2020, onward). Under the new rules, her last 10 years of service will be reduced 6.2 per cent per year from age 55 for five years.

Example C: Paul begins his contributory service as a new hire on April 1, 2020. Paul is 45 years old and plans to retire at age 50 with five years of contributory service.

All of his service falls under the new rules. Under the old rules, he had to have at least 10 years of service to retire at age 50. Under the new rules, he can retire at age 50. His pension will be reduced 6.2 per cent per year from age 60 for 10 years.