Here are four retirement scenarios, with their impact on the pension you will receive: normal retirement, early retirement, postponed retirement, and pre-retirement early benefit.
You must no longer be working for any employer to be eligible to receive your pension from the Plan.
Normal retirement
You may retire on the first day of the month following or coinciding with your 65th birthday and begin receiving your pension under the Plan.
Early retirement – With unreduced pension
You may take an early retirement as of the first day of the month following or coinciding with your 60th birthday. You will then be entitled to the full amount of your accrued pension.
If you are no longer working for an employer, you will benefit from asking the payment of your pension as of age 60.
Early retirement – With reduced pension
You may take an early retirement as of the first day of the month following or coinciding with your 55th birthday. Should you retire before age 60, however, your pension will be permanently reduced to account for the fact that it will be paid to you over a longer period than if you retired at 60. Please note that no pension is payable before age 55.
Postponed retirement
As of your 65th birthday, you no longer make contributions and accrue credited service under the Plan.
If you continue to work, your pension will increase since it will be paid to you over a shorter period than if your pension was paid as of the normal retirement age under the Plan. However, the payment of your pension must begin no later than December 1st of the year during which you reach age 71, even if you continue working after that date. If you are no longer working for an employer, you will benefit from asking the payment of your pension as of that time.
Time frames before receiving your pension
You are under no obligation to begin drawing your pension immediately when you stop working for your employer. You may delay the payment of your pension to a date of your choice. If, for example, you stop working at age 59, you may decide to wait until your 60th birthday to receive an unreduced pension. In any case, you cannot request the retroactive payment of your pension more than 3 months before the date on which the Plan administrator receives your request. It is therefore important to plan the timing of your request to the Plan administration. For example, you may receive a retroactive pension payment on July 1, as long as the Plan administrator receives your pension request no later than September 30.
Pre-retirement early benefit
The pre-retirement early benefit allows you to receive a lump-sum payment from the Plan to partially compensate for the reduction of income resulting from a reduction in your work time as you approach retirement. It is important to note that there is no obligation to claim this benefit if you choose to reduce your working hours. Hence, you may reduce your working schedule without anticipating part of your retirement pension.
To be eligible for this early benefit, you must be a member of the Plan between 55 and 65 years of age, still be actively working, and come to an agreement with your employer regarding the reduction of your working hours. You may then make the request to the Plan administrator by providing them with a letter stating your wish to benefit from an early benefit payment compensating for reduced working hours and a copy of the agreement between you and your employer, signed by both parties. You may submit a request annually.
It should be noted that:
- Each request is for a single payment and a request can be submitted annually if the above conditions are met, including the agreement with your employer.
- All lump-sum payments received will reduce the pension amount you will receive upon retirement.
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