Early retirement
Retiring before the normal retirement age will affect your pension. Here are the key points to consider.
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.
The early retirement reduction rules are complex. If you are not sure which of the following scenarios applies to you, contact the plan to discuss your particular situation.
For pensionable service earned up to and including December 31, 2017
Unreduced scenario
Any one of the following:
- Retire between ages 55 and 59 and your age plus years of contributory service totals at least 90
- Retire between ages 60 and 64 with at least two years of contributory service
- Retire at age 65 or older
Reduction amount – none; you qualify for an unreduced pension
Scenario 1
- Retire before age 65
- Have less than two years of contributory service
Reduction amount – five per cent for every year you are under age 65
Scenario 2
- End employment between ages 55 and 60 and retire
- Have at least 10 years of pensionable service
- In the last 24 months of employment, have at least one of:
- 20 months of contributory service
- 10 months of pensionable service
Reduction amount – whichever calculation is lower:
- Three per cent for every year you are under age 60
- Three per cent for every year your age plus contributory service is less than 90
Scenario 3
Any early retirement scenario other than those described above
Reduction amount – whichever calculation is lower:
- Five per cent for every year you are under age 60
- Five per cent for every year your age plus contributory service is less than 90
For pensionable service earned on or after January 1, 2018
Unreduced scenario
Any one of the following:
- Retire between ages 55 and 60 with at least 35 years of contributory service
- Retire between ages 61 and 64 with at least two years of contributory service
- Retire at age 65 or older
Reduction amount – none; you qualify for an unreduced pension
Scenario 1
- Retire before age 65
- Have less than two years of contributory service
Reduction amount – 4.5 per cent for every year you are under age 65
Scenario 2
- Retire before age 61
- Have more than 2 but fewer than 35 years of contributory service
Reduction amount – 4.5 per cent for every year you are under age 61