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 you do not meet the criteria for an unreduced pension, your pension will be reduced. The bridge benefit is also proportionately reduced.

The amount of your pension will be reduced based on a combination of your:

  • Age when you end your employment
  • Contributory service  
  • Age when you start receiving your pension

If you have at least two years of contributory service, your pension will be reduced by three per cent for each year that one of the following applies:

  • You retire before age 60 (55 for group 2 and 5 members)
  • The sum of your age plus years of contributory service is less than 90 years (80 years for group 2 and 5 members)

The lesser of these two circumstances will be used to calculate your pension reduction.

If you have less than two years of contributory service, your pension will be reduced by three per cent for each year you retire before age 65 (60 for group 2 and 5 members).

The three per cent reduction rate also applies when you end employment, if you meet the minimum age requirement:

  • 55 (50 for group 2 and 5 members) 
  • 50 (45 for group 2 and 5 members) and you have at least 10 years of contributory service

If you do not meet the minimum age requirement, your pension will be reduced by five per cent per year. 

Reductions are prorated by month for partial years.

If you left your employer before September 30, 2015, please contact the plan as different rules may apply.


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