Managing
the Plan
How does your pension grow?
Cost of living adjustments
(in years where the Plan can afford it)
If you joined the plan prior to March 31, 2013 (the conversion date of the Plan), you are entitled to a pre-conversion pension and a post-conversion pension.
If you joined the Plan after March 31, 2013, you are entitled to a post-conversion pension.
Current age: 25
Total service: 6.5 years
Pre-conversion service: 0 years
Calculation date: January 1, 2022
Post-conversion benefit
Beginning of year (BOY) | End of year (EOY) | Pension-able earnings (PE) | Pension accrual (1.8% x PE) | Indexation at EOY (%) | Indexation at EOY ($) | Accrued pension at EOY |
---|---|---|---|---|---|---|
Jan 1, 2015 | Jan 1, 2016 | $30,247 | $544 | 1.16% | $0 | $544 |
Jan 1, 2016 | Jan 1, 2017 | $61,200 | $1,102 | 0.6% | $3 | $1,649 |
Jan 1, 2017 | Jan 1, 2018 | $62,424 | $1,124 | 1.49% | $25 | $2,798 |
Jan 1, 2018 | Jan 1, 2019 | $63,672 | $1,146 | 1.97% | $55 | $3,999 |
Jan 1, 2019 | Jan 1, 2020 | $64,946 | $1,169 | 1.89% | $75 | $5,243 |
Jan 1, 2020 | Jan 1, 2021 | $66,245 | $1,193 | 0.0% | $0 | $6,436 |
Jan 1, 2021 | Jan 1, 2022 | $67,570 | $1,216 | 2.09% | $135 | $7,787 |
Deferred pension | ||||
---|---|---|---|---|
Pre-conversion | $0 | |||
Post-conversion | $7,787 | |||
Life total | $7,787 |
Current age: 38
Total service: 12 years
Pre-conversion service: 3.25 years
Post-conversion best-average earnings: $45,000
Calculation date: January 1, 2022
Pre-conversion benefit
Date | Indexation (%) | Pre-conversion benefit | |
---|---|---|---|
Mar 31, 2013 | $2,808 | ||
Jan 1, 2014 | 0.9% | $2,833 | |
Jan 1, 2015 | 1.62% | $2,879 | |
Jan 1, 2016 | 1.16% | $2,913 | |
Jan 1, 2017 | 0.6% | $2,930 | |
Jan 1, 2018 | 1.49% | $2,974 | |
Jan 1, 2019 | 1.97% | $3,032 | |
Jan 1, 2020 | 1.89% | $3,090 | |
Jan 1, 2021 | 0.0% | $3,090 | |
Jan 1, 2022 | 2.09% | $3,154 |
Pre-conversion bridge
Date | Indexation (%) | Supplemental benefit | |
---|---|---|---|
Mar 31, 2013 | $114 | ||
Jan 1, 2014 | 0.9% | $115 | |
Jan 1, 2015 | 1.62% | $117 | |
Jan 1, 2016 | 1.16% | $118 | |
Jan 1, 2017 | 0.6% | $119 | |
Jan 1, 2018 | 1.49% | $121 | |
Jan 1, 2019 | 1.97% | $123 | |
Jan 1, 2020 | 1.89% | $125 | |
Jan 1, 2021 | 0.0% | $125 | |
Jan 1, 2022 | 2.09% | $128 |
Post-conversion benefit
Beginning of year (BOY) | End of year (EOY) | Pension-able earnings (PE) | Pension accrual (1.8% x PE) | Indexation at EOY (%) | Indexation at EOY ($) | Accrued pension at EOY |
---|---|---|---|---|---|---|
Mar 31, 2013 | Jan 1, 2014 | $35,060 | $631 | n/a | $0 | $631 |
Jan 1, 2014 | Jan 1, 2015 | $47,000 | $846 | 1.62% | $10 | $1,487 |
Jan 1, 2015 | Jan 1, 2016 | $47,470 | $855 | 1.16% | $17 | $2,359 |
Jan 1, 2016 | Jan 1, 2017 | $47,945 | $863 | 0.6% | $14 | $3,236 |
Jan 1, 2017 | Jan 1, 2018 | $48,424 | $872 | 1.49% | $48 | $4,156 |
Jan 1, 2018 | Jan 1, 2019 | $48,908 | $880 | 1.97% | $82 | $5,118 |
Jan 1, 2019 | Jan 1, 2020 | $49,397 | $889 | 1.89% | $97 | $6,104 |
Jan 1, 2020 | Jan 1, 2021 | $49,891 | $898 | 0.0% | $0 | $7,002 |
Jan 1, 2021 | Jan 1, 2022 | $50,390 | $907 | 2.09% | $146 | $8,055 |
Deferred pension | ||||
---|---|---|---|---|
Pre-conversion | $3,154 | |||
Post-conversion | $8,055 | |||
Life total | $11,210 | |||
Bridge from 60 to 65 | $128 |
Current age: 60
Total service: 33 years
Pre-conversion service: 24.25 years
Post-conversion best-average earnings: $50,000
Calculation date: January 1, 2022
Pre-conversion benefit
Date | Indexation (%) | Pre-conversion benefit | |
---|---|---|---|
Mar 31, 2013 | $23,398 | ||
Jan 1, 2014 | 0.9% | $23,609 | |
Jan 1, 2015 | 1.62% | $23,991 | |
Jan 1, 2016 | 1.16% | $24,269 | |
Jan 1, 2017 | 0.6% | $24,415 | |
Jan 1, 2018 | 1.49% | $24,779 | |
Jan 1, 2019 | 1.97% | $25,267 | |
Jan 1, 2020 | 1.89% | $25,744 | |
Jan 1, 2021 | 0.0% | $25,744 | |
Jan 1, 2022 | 2.09% | $26,282 |
Note: Age + service is greater than 80, which means the pre-conversion benefit is unreduced
Pre-conversion bridge
Date | Indexation (%) | Supplemental benefit | |
---|---|---|---|
Mar 31, 2013 | $849 | ||
Jan 1, 2014 | 0.9% | $857 | |
Jan 1, 2015 | 1.62% | $871 | |
Jan 1, 2016 | 1.16% | $881 | |
Jan 1, 2017 | 0.6% | $886 | |
Jan 1, 2018 | 1.49% | $899 | |
Jan 1, 2019 | 1.97% | $917 | |
Jan 1, 2020 | 1.89% | $934 | |
Jan 1, 2021 | 0.0% | $934 | |
Jan 1, 2022 | 2.09% | $954 |
Post-conversion benefit
Beginning of year (BOY) | End of year (EOY) | Pension-able earnings (PE) | Pension accrual (1.8% x PE) | Indexation at EOY (%) | Indexation at EOY ($) | Accrued pension at EOY |
---|---|---|---|---|---|---|
Mar 31, 2013 | Jan 1, 2014 | $39,750 | $716 | n/a | $0 | $716 |
Jan 1, 2014 | Jan 1, 2015 | $54,060 | $973 | 1.62% | $11 | $1,700 |
Jan 1, 2015 | Jan 1, 2016 | $55,141 | $992 | 1.16% | $20 | $2,712 |
Jan 1, 2016 | Jan 1, 2017 | $56,244 | $1,013 | 0.6% | $16 | $3,741 |
Jan 1, 2017 | Jan 1, 2018 | $57,369 | $1,032 | 1.49% | $56 | $4,829 |
Jan 1, 2018 | Jan 1, 2019 | $58,516 | $1,054 | 1.97% | $95 | $5,978 |
Jan 1, 2019 | Jan 1, 2020 | $59,687 | $1,074 | 1.89% | $113 | $7,165 |
Jan 1, 2020 | Jan 1, 2021 | $60,880 | $1,096 | 0.0% | $0 | $8,261 |
Jan 1, 2021 | Jan 1, 2022 | $62,098 | $1,118 | 2.09% | $173 | $9,552 |
Note: The reduction factor is 6% per year from retirement until age 65, resulting in a reduction of 30%
Unreduced pension | Reduction | Reduced pension | ||
---|---|---|---|---|
Pre-conversion | $26,282 | 0% | $26,282 | |
Post-conversion | $9,552 | 30% | $6,686 | |
Life total | $35,835 | $32,969 | ||
Bridge from 60 to 65 | $954 | 0% | $954 |
What happens to your pension after a life event?
DIVORCE/RELATIONAL BREAKDOWN
You may be required by law to divide the pension benefits you earned during your spousal relationship with your ex-spouse or ex-common-law partner. The laws for relationship breakdown are complex, so we encourage you to consult a legal advisor and the pension administrator, TELUS Health. TELUS Health will calculate the division of your pension benefits and direct any payments in accordance with applicable laws and the decree, order or judgment of the court or a domestic contract, as applicable.If you have a marriage/relational breakdown, please call TELUS Health at 1-855-201-7830 and note whether there is a division of assets in the separation agreement.
SURVIVOR BENEFITS BEFORE RETIREMENT
If you are…Your beneficiary is entitled to a lump-sum cash payment of the termination value, less applicable taxes.
- A transfer of the termination value to a non-locked-in RRSP.
- A lump-sum cash payment of the termination value less applicable taxes.
- A spousal pension that is equal to 60% of your benefit (at date of death) payable for his or her lifetime. The eligible spouse may choose to begin receiving unreduced payments before the member’s normal retirement date.
Your beneficiary is entitled to a lump-sum cash payment of your contributions plus interest, less applicable taxes.
- A lump-sum cash payment
- A transfer to a non-locked-in RRSP
If you don’t have a surviving spouse, but you do have dependent children that you have listed as beneficiaries, they may be entitled to shares of the Survivor Pension amount, divided equally among those who qualify.
Keeping your beneficiary information up to date is important! Make sure your loved ones are covered if anything unexpected happens to you.
If you don’t assign a beneficiary, your pension will go to your estate and will be subject to tax.
If you would like to update your beneficiary, contact TELUS Health at 1-855-201-7830 or info
Please note: If you have an eligible spouse or common-law partner at the time of your death, he or she is entitled to your pension benefit by law. The spouse/common-law partner that you have on file when you retire is entitled to your post-retirement death benefit.
What happens to your pension during a leave of absence?
- If you are on an approved Long-Term Disability (LTD) leave, your employer will pay your contributions on your behalf, and will also continue to pay their contributions.
You can either continue making contributions to the pension fund, or pause contributions during your maternity/parental leave.
- If you continue contributions, your employer will also continue to make contributions on your behalf.
Keep in mind that your contributions will be based on your salary level while working, not on your actual earnings while on leave.
- If you pause contributions, you will have 12 months from the date you return to work to purchase that period of service — you don’t have to purchase this service; it is optional.
- If you take a statutory leave of absence or an approved leave of absence, you can either continue making contributions to the pension fund or pause contributions while on leave.
- If you pause contributions while on leave for workers’ compensation, your employer will pay your contributions on your behalf, and will also continue to pay their contributions.
- If you pause contributions while on unpaid leave, you will not receive employer matching contributions.
- If you take another form of leave, both your and your employer’s contributions will pause while you are on leave.
- If you take an approved leave of absence, you will have a buyback opportunity that allows you to purchase the time within 12 months of returning to work.
Your pension is an important part of your retirement income; however, it is only one piece of the puzzle.
The amount of money you will need in retirement will vary depending on your pre-retirement earnings and desired retirement lifestyle.
We’ve pulled together a list of helpful resources related to your financial wellbeing. Link directly from this screen to learn more!
Go to the Plan member website to access the pension projection tool. This tool lets you run estimates of your future pension payments from the Shared Risk Plan.
Note: Actual amounts can only be calculated when you retire.
You have access to government-provided retirement benefits — through the Canada Pension Plan and Old Age Security. You should consider how these benefits will factor into your overall retirement savings strategy.
The Canada Pension Plan (CPP) pays you a monthly benefit when you retire. The amount you receive is based on your earnings and the contributions you and your employer(s) make during your working years.
Learn more about the Canada Pension Plan
CONTRIBUTIONS
During your working years, you and your employer(s) make regular payroll contributions to the CPP. Contributions are based on your earnings, up to a maximum earnings limit called the Year’s Maximum Pensionable Earnings (YMPE). You do not contribute or earn a CPP benefit on earnings above this limit.
BENEFIT
The benefit you receive will depend on when you start your CPP, how much and for how long you contributed, and your average earnings (up to the YMPE) through your working life.
If you begin your CPP benefit at age:
65
it will be paid to you with no adjustments.
60-65
it will be reduced by 0.6% for each month before your 65th birthday (or 7.2% per year). This reduction is permanent.
65-70
it will be increased by 0.7% for each month after your 65th birthday (or 8.4% per year). This increase is permanent.
Good to know! The federal government announced a CPP expansion that began in 2019 and will be phased in by 2025. Some highlights include: a higher benefit at retirement, a higher maximum earnings limit (so that more of your earnings are covered by CPP) and increased payroll contributions.
Learn more
Old Age Security (OAS) pays you a monthly benefit when you retire. No contributions are required to qualify for this benefit. Instead, the amount you receive is based on how long you have lived in Canada since age 18.
Unlike CPP, you cannot start OAS before age 65; however you can choose to delay it up to age 70. If you do, it will be increased by 7.2% for each year you start your benefit after your 65th birthday. This increase is permanent.
Good to know! OAS is an income-tested benefit. If you earn above a certain income while you’re retired, some or all of your OAS benefit could be taken back each year when you file your income taxes.
Learn more about Old Age Security
Pension regulation
Office of the Superintendent of Financial Institutions (OSFI)
Retirement income sources
Taxes
Financial literacy
A financial planner can help review your personal finances, take stock of your retirement savings, assist with tax planning, and establish goals that will help you get to your desired retirement lifestyle.
Take the following steps to find the right financial planner:
Look for someone with accreditation — either a Certified Financial Planner (CFP) or a Registered Financial Planner (RFP). These resources can help you find a financial planner with accreditation:
Interview your potential financial planner(s) before committing
Ask around or look online for feedback — what are people saying about your potential financial planner(s)?
Choose someone based on trust, not on promises — you’ll likely be working with your financial planner for a number of years so it’s critical to choose someone who answers your questions honestly and makes you feel comfortable
This timeline outlines when you can expect to receive communications related to your pension and updates on the Plan.
June
September
November
December
How does your pension grow?
Cost of living adjustments
(in years where the Plan can afford it)
If you joined the plan prior to March 31, 2013 (the conversion date of the Plan), you are entitled to a pre-conversion pension and a post-conversion pension.
If you joined the Plan after March 31, 2013, you are entitled to a post-conversion pension.
Current age: 25
Total service: 6.5 years
Pre-conversion service: 0 years
Calculation date: January 1, 2022
Post-conversion benefit
Beginning of year (BOY) | End of year (EOY) | Pension-able earnings (PE) | Pension accrual (1.8% x PE) | Indexation at EOY (%) | Indexation at EOY ($) | Accrued pension at EOY |
---|---|---|---|---|---|---|
Jan 1, 2015 | Jan 1, 2016 | $30,247 | $544 | 1.16% | $0 | $544 |
Jan 1, 2016 | Jan 1, 2017 | $61,200 | $1,102 | 0.6% | $3 | $1,649 |
Jan 1, 2017 | Jan 1, 2018 | $62,424 | $1,124 | 1.49% | $25 | $2,798 |
Jan 1, 2018 | Jan 1, 2019 | $63,672 | $1,146 | 1.97% | $55 | $3,999 |
Jan 1, 2019 | Jan 1, 2020 | $64,946 | $1,169 | 1.89% | $75 | $5,243 |
Jan 1, 2020 | Jan 1, 2021 | $66,245 | $1,193 | 0.0% | $0 | $6,436 |
Jan 1, 2021 | Jan 1, 2022 | $67,570 | $1,216 | 2.09% | $135 | $7,787 |
Deferred pension | ||||
---|---|---|---|---|
Pre-conversion | $0 | |||
Post-conversion | $7,787 | |||
Life total | $7,787 |
Current age: 38
Total service: 12 years
Pre-conversion service: 3.25 years
Post-conversion best-average earnings: $45,000
Calculation date: January 1, 2022
Pre-conversion benefit
Date | Indexation (%) | Pre-conversion benefit | |
---|---|---|---|
Mar 31, 2013 | $2,808 | ||
Jan 1, 2014 | 0.9% | $2,833 | |
Jan 1, 2015 | 1.62% | $2,879 | |
Jan 1, 2016 | 1.16% | $2,913 | |
Jan 1, 2017 | 0.6% | $2,930 | |
Jan 1, 2018 | 1.49% | $2,974 | |
Jan 1, 2019 | 1.97% | $3,032 | |
Jan 1, 2020 | 1.89% | $3,090 | |
Jan 1, 2021 | 0.0% | $3,090 | |
Jan 1, 2022 | 2.09% | $3,154 |
Pre-conversion bridge
Date | Indexation (%) | Supplemental benefit | |
---|---|---|---|
Mar 31, 2013 | $114 | ||
Jan 1, 2014 | 0.9% | $115 | |
Jan 1, 2015 | 1.62% | $117 | |
Jan 1, 2016 | 1.16% | $118 | |
Jan 1, 2017 | 0.6% | $119 | |
Jan 1, 2018 | 1.49% | $121 | |
Jan 1, 2019 | 1.97% | $123 | |
Jan 1, 2020 | 1.89% | $125 | |
Jan 1, 2021 | 0.0% | $125 | |
Jan 1, 2022 | 2.09% | $128 |
Post-conversion benefit
Beginning of year (BOY) | End of year (EOY) | Pension-able earnings (PE) | Pension accrual (1.8% x PE) | Indexation at EOY (%) | Indexation at EOY ($) | Accrued pension at EOY |
---|---|---|---|---|---|---|
Mar 31, 2013 | Jan 1, 2014 | $35,060 | $631 | n/a | $0 | $631 |
Jan 1, 2014 | Jan 1, 2015 | $47,000 | $846 | 1.62% | $10 | $1,487 |
Jan 1, 2015 | Jan 1, 2016 | $47,470 | $855 | 1.16% | $17 | $2,359 |
Jan 1, 2016 | Jan 1, 2017 | $47,945 | $863 | 0.6% | $14 | $3,236 |
Jan 1, 2017 | Jan 1, 2018 | $48,424 | $872 | 1.49% | $48 | $4,156 |
Jan 1, 2018 | Jan 1, 2019 | $48,908 | $880 | 1.97% | $82 | $5,118 |
Jan 1, 2019 | Jan 1, 2020 | $49,397 | $889 | 1.89% | $97 | $6,104 |
Jan 1, 2020 | Jan 1, 2021 | $49,891 | $898 | 0.0% | $0 | $7,002 |
Jan 1, 2021 | Jan 1, 2022 | $50,390 | $907 | 2.09% | $146 | $8,055 |
Deferred pension | ||||
---|---|---|---|---|
Pre-conversion | $3,154 | |||
Post-conversion | $8,055 | |||
Life total | $11,210 | |||
Bridge from 60 to 65 | $128 |
Current age: 60
Total service: 33 years
Pre-conversion service: 24.25 years
Post-conversion best-average earnings: $50,000
Calculation date: January 1, 2022
Pre-conversion benefit
Date | Indexation (%) | Pre-conversion benefit | |
---|---|---|---|
Mar 31, 2013 | $23,398 | ||
Jan 1, 2014 | 0.9% | $23,609 | |
Jan 1, 2015 | 1.62% | $23,991 | |
Jan 1, 2016 | 1.16% | $24,269 | |
Jan 1, 2017 | 0.6% | $24,415 | |
Jan 1, 2018 | 1.49% | $24,779 | |
Jan 1, 2019 | 1.97% | $25,267 | |
Jan 1, 2020 | 1.89% | $25,744 | |
Jan 1, 2021 | 0.0% | $25,744 | |
Jan 1, 2022 | 2.09% | $26,282 |
Note: Age + service is greater than 80, which means the pre-conversion benefit is unreduced
Pre-conversion bridge
Date | Indexation (%) | Supplemental benefit | |
---|---|---|---|
Mar 31, 2013 | $849 | ||
Jan 1, 2014 | 0.9% | $857 | |
Jan 1, 2015 | 1.62% | $871 | |
Jan 1, 2016 | 1.16% | $881 | |
Jan 1, 2017 | 0.6% | $886 | |
Jan 1, 2018 | 1.49% | $899 | |
Jan 1, 2019 | 1.97% | $917 | |
Jan 1, 2020 | 1.89% | $934 | |
Jan 1, 2021 | 0.0% | $934 | |
Jan 1, 2022 | 2.09% | $954 |
Post-conversion benefit
Beginning of year (BOY) | End of year (EOY) | Pension-able earnings (PE) | Pension accrual (1.8% x PE) | Indexation at EOY (%) | Indexation at EOY ($) | Accrued pension at EOY |
---|---|---|---|---|---|---|
Mar 31, 2013 | Jan 1, 2014 | $39,750 | $716 | n/a | $0 | $716 |
Jan 1, 2014 | Jan 1, 2015 | $54,060 | $973 | 1.62% | $11 | $1,700 |
Jan 1, 2015 | Jan 1, 2016 | $55,141 | $992 | 1.16% | $20 | $2,712 |
Jan 1, 2016 | Jan 1, 2017 | $56,244 | $1,013 | 0.6% | $16 | $3,741 |
Jan 1, 2017 | Jan 1, 2018 | $57,369 | $1,032 | 1.49% | $56 | $4,829 |
Jan 1, 2018 | Jan 1, 2019 | $58,516 | $1,054 | 1.97% | $95 | $5,978 |
Jan 1, 2019 | Jan 1, 2020 | $59,687 | $1,074 | 1.89% | $113 | $7,165 |
Jan 1, 2020 | Jan 1, 2021 | $60,880 | $1,096 | 0.0% | $0 | $8,261 |
Jan 1, 2021 | Jan 1, 2022 | $62,098 | $1,118 | 2.09% | $173 | $9,552 |
Note: The reduction factor is 6% per year from retirement until age 65, resulting in a reduction of 30%
Unreduced pension | Reduction | Reduced pension | ||
---|---|---|---|---|
Pre-conversion | $26,282 | 0% | $26,282 | |
Post-conversion | $9,552 | 30% | $6,686 | |
Life total | $35,835 | $32,969 | ||
Bridge from 60 to 65 | $954 | 0% | $954 |
What happens to your pension after a life event?
DIVORCE/RELATIONAL BREAKDOWN
You may be required by law to divide the pension benefits you earned during your spousal relationship with your ex-spouse or ex-common-law partner. The laws for relationship breakdown are complex, so we encourage you to consult a legal advisor and the pension administrator, TELUS Health. TELUS Health will calculate the division of your pension benefits and direct any payments in accordance with applicable laws and the decree, order or judgment of the court or a domestic contract, as applicable.If you have a marriage/relational breakdown, please call TELUS Health at 1-855-201-7830 and note whether there is a division of assets in the separation agreement.
SURVIVOR BENEFITS BEFORE RETIREMENT
If you are…Your beneficiary is entitled to a lump-sum cash payment of the termination value, less applicable taxes.
- A transfer of the termination value to a non-locked-in RRSP.
- A lump-sum cash payment of the termination value less applicable taxes.
- A spousal pension that is equal to 60% of your benefit (at date of death) payable for his or her lifetime. The eligible spouse may choose to begin receiving unreduced payments before the member’s normal retirement date.
Your beneficiary is entitled to a lump-sum cash payment of your contributions plus interest, less applicable taxes.
- A lump-sum cash payment
- A transfer to a non-locked-in RRSP
If you don’t have a surviving spouse, but you do have dependent children that you have listed as beneficiaries, they may be entitled to shares of the Survivor Pension amount, divided equally among those who qualify.
Keeping your beneficiary information up to date is important! Make sure your loved ones are covered if anything unexpected happens to you.
If you don’t assign a beneficiary, your pension will go to your estate and will be subject to tax.
If you would like to update your beneficiary, contact TELUS Health at 1-855-201-7830 or info
Please note: If you have an eligible spouse or common-law partner at the time of your death, he or she is entitled to your pension benefit by law. The spouse/common-law partner that you have on file when you retire is entitled to your post-retirement death benefit.
What happens to your pension during a leave of absence?
- If you are on an approved Long-Term Disability (LTD) leave, your employer will pay your contributions on your behalf, and will also continue to pay their contributions.
You can either continue making contributions to the pension fund, or pause contributions during your maternity/parental leave.
- If you continue contributions, your employer will also continue to make contributions on your behalf.
Keep in mind that your contributions will be based on your salary level while working, not on your actual earnings while on leave.
- If you pause contributions, you will have 12 months from the date you return to work to purchase that period of service — you don’t have to purchase this service; it is optional.
- If you take a statutory leave of absence or an approved leave of absence, you can either continue making contributions to the pension fund or pause contributions while on leave.
- If you pause contributions while on leave for workers’ compensation, your employer will pay your contributions on your behalf, and will also continue to pay their contributions.
- If you pause contributions while on unpaid leave, you will not receive employer matching contributions.
- If you take another form of leave, both your and your employer’s contributions will pause while you are on leave.
- If you take an approved leave of absence, you will have a buyback opportunity that allows you to purchase the time within 12 months of returning to work.
Your pension is an important part of your retirement income; however, it is only one piece of the puzzle.
The amount of money you will need in retirement will vary depending on your pre-retirement earnings and desired retirement lifestyle.
We’ve pulled together a list of helpful resources related to your financial wellbeing. Link directly from this screen to learn more!
Go to the Plan member website to access the pension projection tool. This tool lets you run estimates of your future pension payments from the Shared Risk Plan.
Note: Actual amounts can only be calculated when you retire.
You have access to government-provided retirement benefits — through the Canada Pension Plan and Old Age Security. You should consider how these benefits will factor into your overall retirement savings strategy.
The Canada Pension Plan (CPP) pays you a monthly benefit when you retire. The amount you receive is based on your earnings and the contributions you and your employer(s) make during your working years.
Learn more about the Canada Pension Plan
CONTRIBUTIONS
During your working years, you and your employer(s) make regular payroll contributions to the CPP. Contributions are based on your earnings, up to a maximum earnings limit called the Year’s Maximum Pensionable Earnings (YMPE). You do not contribute or earn a CPP benefit on earnings above this limit.
BENEFIT
The benefit you receive will depend on when you start your CPP, how much and for how long you contributed, and your average earnings (up to the YMPE) through your working life.
If you begin your CPP benefit at age:
65
it will be paid to you with no adjustments.
60-65
it will be reduced by 0.6% for each month before your 65th birthday (or 7.2% per year). This reduction is permanent.
65-70
it will be increased by 0.7% for each month after your 65th birthday (or 8.4% per year). This increase is permanent.
Good to know! The federal government announced a CPP expansion that began in 2019 and will be phased in by 2025. Some highlights include: a higher benefit at retirement, a higher maximum earnings limit (so that more of your earnings are covered by CPP) and increased payroll contributions.
Learn more
Old Age Security (OAS) pays you a monthly benefit when you retire. No contributions are required to qualify for this benefit. Instead, the amount you receive is based on how long you have lived in Canada since age 18.
Unlike CPP, you cannot start OAS before age 65; however you can choose to delay it up to age 70. If you do, it will be increased by 7.2% for each year you start your benefit after your 65th birthday. This increase is permanent.
Good to know! OAS is an income-tested benefit. If you earn above a certain income while you’re retired, some or all of your OAS benefit could be taken back each year when you file your income taxes.
Learn more about Old Age Security
Pension regulation
Office of the Superintendent of Financial Institutions (OSFI)
Retirement income sources
Taxes
Financial literacy
A financial planner can help review your personal finances, take stock of your retirement savings, assist with tax planning, and establish goals that will help you get to your desired retirement lifestyle.
Take the following steps to find the right financial planner:
Look for someone with accreditation — either a Certified Financial Planner (CFP) or a Registered Financial Planner (RFP). These resources can help you find a financial planner with accreditation:
Interview your potential financial planner(s) before committing
Ask around or look online for feedback — what are people saying about your potential financial planner(s)?
Choose someone based on trust, not on promises — you’ll likely be working with your financial planner for a number of years so it’s critical to choose someone who answers your questions honestly and makes you feel comfortable
This timeline outlines when you can expect to receive communications related to your pension and updates on the Plan.