Your contributions and those of your employer entitle you to a lifetime pension under the Plan. Should you have past service (before April 1, 2003) recognized, a pension for past service would also be paid to you. Please note, however, that the past service recognition program ended in 2004.
Included below is the formula used to calculate the pension payable at normal retirement. We then provide several retirement scenarios, based on various ages at retirement to help you determine when you can afford to retire.
You may also refer to your personalized annual statement for additional information, or refer to the projection tool available in the Personal Zone.
Your pension under the Plan is calculated based on average eligible earnings and credited service that you have accumulated in the Plan for the period prior to January 1, 2019 and the period beginning on January 1, 2019.
- Average eligible earnings for service prior to January 1, 2019 include overtime hours earnings exceeding the 1,664 hour threshold.
- Average eligible earnings for service as of January 1, 2019 do not include overtime hours earnings exceeding the 1,664 hour threshold.
Pension calculation formula |
1.5% x Your average eligible earnings x Your credited service |
Example |
Average eligible earnings prior to January 1, 2019: $30,500 Credited service prior to 2019: 14 years | 1.5% x $30,500 x 14 years = $6,405 | Sum of pensions calculated for the period prior to 2019 and the period after 2018 : $6,405 + $2,175 = $8,580 |
|
Average eligible earnings as of January 1, 2019: $29,000 Credited service after 2018: 5 years | 1.5% x $29,000 x 5 years = $2,175 | An annual pension of $8,580 will be paid for life. |
Your pension is payable in monthly instalments on the first day of each month, through direct deposit in your bank account. Please note that the pension amount is taxable, like any other income.
Your actual pension amount could be different depending on which death benefit you select for your spouse, your designated beneficiary, or your estate when you retire. The various forms of death benefits under the Plan are explained in detail under the Death section.
Past service before April 1, 2003
Members who worked for an eligible employer between March 31 and May 1, 2003 could request an additional pension for their service prior to April 1, 2003. If you were eligible and applied for recognition of your past service within the allowable time frame, you may have been granted an additional pension.
The amount of your pension for past service is printed on your personalized annual statement under My Pension. This amount is based on the number of eligible hours of past service and on the length of your employment. The maximum pension payable for past service is $765 per year.
Funding of more than 50% of the value of the pension or excess contributions
In case of termination of employment, retirement, death before retirement, or a relationship breakdown, your contributions, excluding stabilization contributions, including interest, may not be used to fund more than half of the value of your accrued benefits under the Plan. Any excess contributions must be used to increase your pension or the benefit payable.
Example of excess contributions
Louise stopped working over 12 months ago. The current value of her pension under the Plan is $12,000 and her total contributions, with interest, amount to $9,000, excluding stabilization contributions. Under the above rule, only $6,000 of this pension may be funded by Louise’s contributions. Since Louise paid $9,000 into the Plan, there are excess contributions of $3,000. The value of the total benefits to which Louise is entitled is calculated as follows :
Excess contributions: ($9,000 - (50% x $12,000)) = $3,000
Value of Louise's total benefits
(Value of pension + excess contributions) $12,000 + $3,000 = $15,000
Temporary pension
If you choose an early retirement (before age 65), you could be offered the option to coordinate your pension with Québec Pension Plan and Old Age Security program. This would allow you to receive an additional income, temporarily, up to age 65. The lifetime pension paid thereafter will, however, be reduced to take into account the temporary pension you benefited.
When you reach age 65, you become fully eligible for the government pensions, which will partially offset the reduction in your pension under the Plan. The main objective is to provide you with a uniform overall income throughout your retirement.
Temporary pension provisions
- Your pension must begin to be paid between ages 55 and 65
- The temporary pension (i.e., the part of the pension that will no longer be payable from age 65) may not exceed the legal maximum, i.e., 40%* of the YMPE for the year during which the pension begins to be paid.
- * In 2024, this amount is $27,000.
Indexation of pension after retirement
Since your pension is not indexed, you will receive the same amount for life.
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