Get Retirement Ready

Congratulations! You’ve worked hard and now you’re getting ready for retirement. We’re here to support you. To help you fully understand your pension benefits, we’ve complied key information and resources below.

• Quick Reference Guide to Retirement

  View our Quick Reference Guide to Retirement for key information and resources to help you fully understand your pension benefits and prepare for retirement.

• How do I qualify for a pension at retirement?

  We’re sure your first question is how to qualify for a pension. You must have a minimum of five years of pensionable service. This is the vesting period of the Plan. Vesting refers to the right of an employee to a lifetime pension. This does not have to be five consecutive years, but rather a total of 60 months over the course of your working career.

• When can I retire?

  The date at which you will be eligible to retire depends on many factors; your age, how much service you have credited in the Plan, and whether you were a member of the Plan on December 31, 2014, when the pension reform changes were introduced. There are also different provisions which will either allow you to retire on an unreduced basis, or to retire earlier subject to a reduction in your accrued pension. Learn more about retirement criteria.

• I’m ready to retire, what do I need to do?

  You’ve determined that you’re eligible to retire, and you’re ready to begin preparing, but now what? To ensure you’re ready when the day arrives, follow these steps:
  

  Verify your retirement eligibility date

  When you begin preparing for retirement, it’s important to consult with your employer and review your Annual Pension Statement to ensure that you have been credited with all eligible pensionable service. This should be done several months in advance of your anticipated retirement date so we can address any discrepancies.

  Also on your Annual Pension Statement, you’ll find the date you’re eligible to retire with an unreduced pension. When you’re sure that your retirement date and credited service are correct, check out our online pension calculator for an estimate of your pension payment.

  Submit relevant paperwork to your employer:

  In terms of paperwork, the first thing you’ll need to do is submit your official letter of resignation to your employer, in accordance with the terms and conditions of your contract or collective agreement.

  Once that’s done, you’ll need to provide your employer with a copy of your completed direct deposit form and a copy of your birth certificate.

  Your initial pension calculation is prepared by the employer and forwarded to Provident10 with the following documents. It’s important to ensure your employer has all this information:

  • Pension application
  • Birth certificate
  • Birth certificate of principal beneficiary* and/or child (required before survivor benefits can be paid)
  • Social Insurance Number of principal beneficiary (required before survivor benefits can be paid)
  • Calculation of Pension Entitlement form
  • Marriage certificate
  • TD (1) forms (provincial and federal)
  • Direct deposit information

  *Principal beneficiary includes legally married spouse or cohabiting partner, and includes a same sex partner.

  Retirement Application:

  Your pension application should be forwarded to us by your employer at least seven weeks before your first pension pay date. This will facilitate a smooth transfer from the employer payroll to the pensioner payroll.

  Please note that if you or your employer have an outstanding balance remaining on a purchase of service contract at the date that you leave the PSPP, your benefits cannot be processed until the outstanding balance is paid in full.

  If you do not wish to pay the outstanding balance, the amount of service that has been credited must be re-determined based on the amounts paid. Both the pension amount and the date that you are eligible to receive a pension will be re-calculated based on the reduced amount of service. If you have questions, please contact us to avoid a delay in the processing of your pension application.

• How do I calculate my Pension Benefit?

  The formula for calculating your pension is as follows:
  2% of your highest average salary (HAE), defined below, multiplied by your years and months of credited pensionable service.

  It is important to note that during the years from April 1, 1993, to March 31, 1996, the 2% accrual rate was lower due to a reduction in employer contribution rates. The impact of the reduction is shown in the examples of pension calculations that follow.

  The Plan is integrated with the Canadian Pension Plan (CPP). Therefore, a portion of your pension will stop on the first of the month following your 65th birthday (the offset). The reduction is 0.6% for each year of service (to a maximum of 35 years) of the lesser of your HAE and the Year’s Maximum Pensionable Earnings (YMPE) average for the 36 months immediately preceding the month of retirement.

• Highest Average Earnings (HAE)

  The salary used in the pension benefit formula is based on your HAE.

  This depends on whether you were employed on a seasonal or year-round basis and whether you had service prior to January 1, 2015.

  Year-round with pre-January 2015 service:

  For pensionable service prior to January 1, 2015, the HAS is the greater of:

  1. the average of the highest five years of salary to December 31, 2014; and
  2. the average of the six continuous 12-month periods providing the highest average up to the date of retirement.

  For pensionable service after December 31, 2014, the average of the six continuous 12-month periods providing the highest average up to the date of retirement serves as the HAE.

  A different HAE is used in respect of service credited before and after December 31, 2014, as follows:

  In respect of service credited prior to January 1, 2015, the HAS is the greater of:
  The HAE during any five 12-month periods before December 31, 2014, or,
  The HAE during any six 12-month periods

  In respect of service credited after December 31, 2014, the HAE is the highest average salary during any six 12-month periods.

• Can you provide examples of how my pension is calculated?

  Examples of how your pension is calculated can be found in section eight of the Plan Member Handbook. You may also visit our pension calculator for an estimate of your expected pension.

  Learn more about how your pension is calculated, including information on both the Bridge Benefit and YMPE.

• How can I enhance my Pension Benefit

  The decisions you make today, can have a big impact on your financial future tomorrow. Did you know that you may be eligible to transfer or purchase past service to the PSPP to enhance your pension?

• If something happens to me, what happens to my Pension?

  When we plan for the future, we also have to think of how to provide for our spouse or family when we’re gone. As a Plan member, your loved ones have protection – in the form of survivor benefits – if you should die before retirement or while receiving your pension. Learn more.