Retiring
from the Plan
When can you retire?
A pre-conversion pension is paid for your period of Plan membership up to March 31, 2013.
Have a pre-conversion and post-conversion pension? If you retire before age 65 (or age 60 if you are a Police and Fire Management Employee), you can start your pre-conversion pension and defer starting your post-conversion pension. This will enable you to optimize your post-conversion pension.
Important! Once you’re eligible for your post-conversion pension, you will be eligible to receive both your pre-conversion pension AND your post-conversion pension.
If you have a pre-conversion pension, it will be unreduced at the earlier of:
- Age 65
- When your age plus service (“points”) totals at least 80
You may retire as early as age 55. Your pre-conversion pension will be reduced by 6% for each year your actual retirement age is earlier than age 65, or the age at which you would have attained 80 points, if earlier.
Public Safety Management members
“Police and Fire Management Employee” means a full-time or part-time non-unionized Employee of the Employers who meets the following criteria: (i) was previously employed, in any jurisdiction, in a unionized police or fire position, and (ii) is employed in a police or fire position with the Employers.
If your age plus service (“points”) totals at least 75, or you have 25 years of credited service, your pre-conversion pension is unreduced.
Otherwise, your pre-conversion pension is reduced by 6% for each year your actual retirement age is earlier than age 65, or the age at which you would have attained 75 points, if earlier.
A post-conversion pension is paid for your period of Plan membership since April 1, 2013.
A post-conversion pension pension is unreduced at:
Age 65
You can retire as early as age 55, but your post-conversion pension will be reduced by 6% for each year you retire before reaching age 65. If you work past age 65, you will continue to earn pension. You must retire by the time you reach age 71 — this is an Income Tax Act rule.
Public Safety Management members
Your post-conversion pension is unreduced at:
Age 60
You can retire as early as age 50, but your post-conversion pension will be reduced by 6% for each year you retire before reaching age 60.
If you work past age 60, you will continue to earn pension. You must retire by the time you reach age 71 — this is an Income Tax Act rule.
Get prepared!
One of the most important things to remember about your pension is that you must apply for it. It is not paid automatically when you retire.
Get prepared! Get an estimate of your pension benefit a few months before retirement.
This allows TELUS Health, the pension administrator, to process the estimate request as a retirement notification instead of sending you a retirement package, to which you must respond. If you wait until the actual month of your retirement to request a retirement package, there will be a delay in receiving your first pension payment.
Please contact TELUS Health, for the required forms at 1-855-201-7830 or info
Pension payments are deposited to your bank account on the 25th of each month (with the exception of December, which will be earlier in the month). When you retire, you must choose your pension option(s), which will be provided to you once your final data is available from your employer. Once your pension is processed and you begin receiving payments, these options cannot be changed.
If you are single when you retire, you can receive a pension that is payable for your lifetime, with a guarantee of:
5
years
10
years
15
years
WHAT IS A GUARANTEE?
Your pension is paid for your lifetime. However, if you die before the end of the guarantee period, the balance of your payments for the remainder of the guarantee period will continue as monthly payments to your beneficiary. If you have not assigned a beneficiary, the balance will go to your estate.
The standard payment form for a single member in our Plan is a 5-year guarantee. If you upgrade to a 10-year or 15-year guarantee, the amount of monthly pension you receive will be adjusted to reflect the longer guarantee period.
Your pension is payable for your lifetime. If you die before your spouse, 60% of both your pre- and post-conversion pension will continue for the remainder of your spouse’s lifetime.
If you have a pre-conversion pension and you die in the first 5 years after retirement, payments for the pre-conversion portion will continue in full to your spouse for the balance of the 5 years, and then at 60% after the remainder of the 5 years.
You may also choose to have your pension continue at a higher percentage to your spouse: 75% – 100%. If you choose one of these options, the monthly pension you receive will be adjusted to reflect the higher survivor benefit.
Note: If you choose an option with a guarantee, and both you and your spouse die before the end of the guarantee period, the balance of your payments for the remainder of the guarantee period will go to your beneficiary. If you have not assigned a beneficiary, the balance will go to your estate.
The standard payment form for a married member in our Plan is 60%. If you upgrade to one of the other payment forms, the amount of monthly pension you receive will be adjusted to reflect either the guarantee period or the higher percentage that is continued to your spouse.
Cost of living adjustments (COLA) are increases to your monthly pension amount.
Cost of living adjustments (COLA) can help ensure your pension keeps pace with the rising cost of goods and services throughout your retirement!
All future cost of living adjustments for current and future retirees and other ancillary benefits are provided only to the extent that funding is available for such benefits, according to the determination of the Board of Trustees made in accordance with applicable law and the Funding Policy for the Plan.
COLA is not guaranteed each year. The Board of Trustees is responsible for granting COLA, which is subject to the Open Group Funded Ratio (OGFR) and two risk management goals outlined in the Funding Policy.
OPEN GROUP FUNDED RATIO
indicates the long-term financial health of the Plan.PRIMARY RISK MANAGEMENT GOAL
is the likelihood that base benefits will not need to be reduced in any year over the next 20 years.SECONDARY RISK MANAGEMENT GOAL
is the average expected level of indexation over the next 20 years, for all members.The Board can only grant COLA in a given calendar year if the primary risk management goal is met and the OGFR is above 105%.
The Board can only grant COLA for missed years if the primary risk management goal is met and the OGFR is above 115%.
The Board can only introduce benefit improvements if both the primary and secondary risk management goals are met and the OGFR is above 115%.
You can find out if COLA is granted by checking these sources:
When can you retire?
A pre-conversion pension is paid for your period of Plan membership up to March 31, 2013.
Have a pre-conversion and post-conversion pension? If you retire before age 65 (or age 60 if you are a Police and Fire Management Employee), you can start your pre-conversion pension and defer starting your post-conversion pension. This will enable you to optimize your post-conversion pension.
Important! Once you’re eligible for your post-conversion pension, you will be eligible to receive both your pre-conversion pension AND your post-conversion pension.
If you have a pre-conversion pension, it will be unreduced at the earlier of:
- Age 65
- When your age plus service (“points”) totals at least 80
You may retire as early as age 55. Your pre-conversion pension will be reduced by 6% for each year your actual retirement age is earlier than age 65, or the age at which you would have attained 80 points, if earlier.
Public Safety Management members
“Police and Fire Management Employee” means a full-time or part-time non-unionized Employee of the Employers who meets the following criteria: (i) was previously employed, in any jurisdiction, in a unionized police or fire position, and (ii) is employed in a police or fire position with the Employers.
If your age plus service (“points”) totals at least 75, or you have 25 years of credited service, your pre-conversion pension is unreduced.
Otherwise, your pre-conversion pension is reduced by 6% for each year your actual retirement age is earlier than age 65, or the age at which you would have attained 75 points, if earlier.
A post-conversion pension is paid for your period of Plan membership since April 1, 2013.
A post-conversion pension pension is unreduced at:
Age 65
You can retire as early as age 55, but your post-conversion pension will be reduced by 6% for each year you retire before reaching age 65. If you work past age 65, you will continue to earn pension. You must retire by the time you reach age 71 — this is an Income Tax Act rule.
Public Safety Management members
Your post-conversion pension is unreduced at:
Age 60
You can retire as early as age 50, but your post-conversion pension will be reduced by 6% for each year you retire before reaching age 60.
If you work past age 60, you will continue to earn pension. You must retire by the time you reach age 71 — this is an Income Tax Act rule.
Get prepared!
One of the most important things to remember about your pension is that you must apply for it. It is not paid automatically when you retire.
Get prepared! Get an estimate of your pension benefit a few months before retirement.
This allows TELUS Health, the pension administrator, to process the estimate request as a retirement notification instead of sending you a retirement package, to which you must respond. If you wait until the actual month of your retirement to request a retirement package, there will be a delay in receiving your first pension payment.
Please contact TELUS Health, for the required forms at 1-855-201-7830 or info
Pension payments are deposited to your bank account on the 25th of each month (with the exception of December, which will be earlier in the month). When you retire, you must choose your pension option(s), which will be provided to you once your final data is available from your employer. Once your pension is processed and you begin receiving payments, these options cannot be changed.
If you are single when you retire, you can receive a pension that is payable for your lifetime, with a guarantee of:
5
years
10
years
15
years
WHAT IS A GUARANTEE?
Your pension is paid for your lifetime. However, if you die before the end of the guarantee period, the balance of your payments for the remainder of the guarantee period will continue as monthly payments to your beneficiary. If you have not assigned a beneficiary, the balance will go to your estate.
The standard payment form for a single member in our Plan is a 5-year guarantee. If you upgrade to a 10-year or 15-year guarantee, the amount of monthly pension you receive will be adjusted to reflect the longer guarantee period.
Your pension is payable for your lifetime. If you die before your spouse, 60% of both your pre- and post-conversion pension will continue for the remainder of your spouse’s lifetime.
If you have a pre-conversion pension and you die in the first 5 years after retirement, payments for the pre-conversion portion will continue in full to your spouse for the balance of the 5 years, and then at 60% after the remainder of the 5 years.
You may also choose to have your pension continue at a higher percentage to your spouse: 75% – 100%. If you choose one of these options, the monthly pension you receive will be adjusted to reflect the higher survivor benefit.
Note: If you choose an option with a guarantee, and both you and your spouse die before the end of the guarantee period, the balance of your payments for the remainder of the guarantee period will go to your beneficiary. If you have not assigned a beneficiary, the balance will go to your estate.
The standard payment form for a married member in our Plan is 60%. If you upgrade to one of the other payment forms, the amount of monthly pension you receive will be adjusted to reflect either the guarantee period or the higher percentage that is continued to your spouse.
Cost of living adjustments (COLA) are increases to your monthly pension amount.
Cost of living adjustments (COLA) can help ensure your pension keeps pace with the rising cost of goods and services throughout your retirement!
All future cost of living adjustments for current and future retirees and other ancillary benefits are provided only to the extent that funding is available for such benefits, according to the determination of the Board of Trustees made in accordance with applicable law and the Funding Policy for the Plan.
COLA is not guaranteed each year. The Board of Trustees is responsible for granting COLA, which is subject to the Open Group Funded Ratio (OGFR) and two risk management goals outlined in the Funding Policy.
OPEN GROUP FUNDED RATIO
indicates the long-term financial health of the Plan.PRIMARY RISK MANAGEMENT GOAL
is the likelihood that base benefits will not need to be reduced in any year over the next 20 years.SECONDARY RISK MANAGEMENT GOAL
is the average expected level of indexation over the next 20 years, for all members.The Board can only grant COLA in a given calendar year if the primary risk management goal is met and the OGFR is above 105%.
The Board can only grant COLA for missed years if the primary risk management goal is met and the OGFR is above 115%.
The Board can only introduce benefit improvements if both the primary and secondary risk management goals are met and the OGFR is above 115%.
You can find out if COLA is granted by checking these sources: