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. Health and dental coverage in early retirement

2. Deciding whether a temporary annuity is right for you

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 (if applicable) is also proportionately reduced.

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

The member group you are in
When you earned your service
Your contributory service
Your age when you start receiving your pension
Your age when you end your employment

If you do not work in public safety as a police officer or firefighter, you are a member of group 1.

Reduction rates by member group and service earned

	For service earned	Reductions
Group 1	Before January 1, 2022	If you have at least two years of contributory service: 3% or 5%* per year before age 60, or your age plus years of contributory service is less than 90 (the “rule of 90”)—whichever results in the lowest reduction If you have less than two years of contributory service: 3% per year before age 65
Group 1	As of January 1, 2022	If you have at least two years of contributory service: 6.2% for each year your age is less than 60 If you have less than two years of contributory service: 5.2% for each year your age is less than 65
Group 2 or 5	Any date	If you have at least two years of contributory service: 3% or 5%* for each year before age 55 or your age plus years of contributory service is less than 80 (the “rule of 80”)—whichever results in the lowest reduction If you have less than two years of contributory service: 3% per year before age 60
The 3% reduction rate 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.