Your pension under the Plan

Retirement scenarios

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.

Steps to follow for your retirement

Getting ready to retire?
A few steps to follow …

1. Once you have made your decision, notify your employer of your retirement date.
2. Contact TELUS Health Administration Team no more than 90 days before your retirement date, in order to request your retirement benefit statement. Please refer to the section Need additional information for contact information. Please note: your pension payment date may not precede by more than 3 months the date on which the Plan administrator receives your request for pension.
3. Thereafter, the Plan administrator will send a Retirement benefit statement within 10 days of your request. Please note: you must select only one form of pension payment. This is also the last opportunity for your spouse to waive, or not, the death benefits to which he or she is entitled during retirement.
4. You will need to provide, among other things, your option election form, a proof of age for you and your spouse, a sample cheque for the direct deposit of your pension and any other document requested in your retirement benefit statement.
5. In order to avoid the delay of the start of your pension payment, you must return all the required documents duly completed as soon as possible.

Please read the options statement carefully: the decision you make will have a permanent impact on your pension and the death benefits. You may want to speak with a financial planner to help you make the most suitable decision.

You may contact the Plan administrator at any time, who will be pleased to provide any assistance you may require.

Questions and answers about retirement

May I purchase past service benefits to increase my retirement income?
No. The Plan does not allow the purchase of past service.

Do I have to stop working to start receiving my retirement pension when I reach the age of 65?
No. You can start receiving your pension while continuing to work with your employer if you request it from the administrator. Note that you will have to pay employee contributions until the last day of the month during which you turn 65.

Once retired, what happens if I go back to work for a participating employer?
If at the time of retirement, the option of a lump-sum payment was offered to you and you opted for it instead of a pension, you would be able to join the Pension Plan again if you are under the age of 65 and you meet the eligibility criteria again before the age of 65.

If, however, you benefited from a retirement pension, your pension will continue to be paid to you while you are working. However, you will no longer make contributions nor accrue credited service. Therefore, your pension will not increase.

Will my pension reduce the government pension benefits to which I am entitled?
No. Your pension under the Plan has no bearing on the government pensions to which you may be entitled. For additional information, please refer to Appendix - Other sources of retirement income.

Will government pensions reduce my pension under the Plan once I receive them?

No. You can, however, choose to receive a temporary pension, which will increase your pension under the Plan until you reach age 65 and begin receiving government benefits. Your pension under the Plan will decrease after your 65th birthday.

When my retirement pension begins, how will I receive my Deposit notice (pay slips)?

You will receive your first Deposit notice by mail for the first payment of your pension and each time there is a change in your amount paid. Your Deposit notices will be available at all times on the My retirement website.

How will I receive my tax slips?

You will receive them by mail. They will also be available on the My retirement website.

If I opt for a postponed retirement (section 5.2), what adjustment will be applied to my pension?

If you are actively working when you turn 65 and you wish to continue working for a participating employer, you must choose between starting to receive your pension from the 1st day of the month following your 65th birthday or postponing this payment until a later date.
For example :
Suzanne has just turned 65 and has accumulated 15 years of credited service in the Plan. She has accrued a pension of $1,000 per month when she turned 65.
If she decides to continue working and not to immediately start receiving her pension, she will benefit from an upward adjustment due to postponement (i.e. payments will begin after age 65).
If she opts to start receiving her pension at age 67, her pension is estimated at $1,105.22 per month, an increase of $105.22 per month. This is equivalent to a total increase of 10.52%, or 5.26% per year of postponement (in this example, 2 years).
We remind you that this calculation is presented as an example only, since the interest rates prescribed by the Canadian Institute of Actuaries used to calculate the postponement vary from one month to the next. Historically, the annual increase provided by the postponement varies between 4% and 7%.
Note that if you stopped working before age 65, there is no advantage in postponing your retirement after age 65 since the amount will not be increased. You must work for a participating employer at age 65 and remain active in the plan after this date in order to see your benefit increased by the postponement.

If I terminated my employment, am I still entitled to the postponement of my pension?
No, the increase in pension provided for by the postponement only applies if you are actively working when you turn 65 and you continue working for an employer participating in the Plan.

During my retirement

As a retiree, you will receive a personalized annual statement.

For any change of a residential address, telephone number or email address, you must use the Changes to personal information tool made available to you through the Personal Zone of the My Retirement Website or contact the RRCPEGQ administration team. You are responsible for notifying the administrator of all changes in order to receive your membership statements and any relevant information pertaining to the Plan. You must also contact the administrator following the death of your spouse or your beneficiary.