Types of Pension

• Service Pension
  • Unreduced
  • Reduced
  • Deferred
• Survivor's Pension
• Deferred Pension

Unreduced Service Pension

A teacher is eligible to receive an unreduced service pension under the TPP:

1. at age 55 when age and pensionable service total at least 85;
2. with 35 or more years of pensionable service regardless of age;
3. at age 60 with ten or more years of pensionable service; or
4. at age 65 with at least two years of pensionable service (as of January 1988).

An unreduced service pension under the TPP is 2% of salary for year of pensionable service to a maximum of 35 years of pensionable service until age 65 when the pension is reduced due to integration with CPP.  The salary used to determine pension is the average of the five highest years of pensionable income.

A maximum service pension can only be obtained with 35 years of pensionable service.

Reduced Service Pension

A teacher is eligible to receive a reduced service pension under the TPP:

• At age 50 or older with at least 30 years of pensionable service;
  • The unreduced pension is reduce dby 5% of the lesser of the difference between:
    
    • The member's age and 55; or
    • The member's pensionable service and 35.
• At age 55 or older with at least 20 years of pensionable service; or
  
  • The unreduced pension is reduced for each month the member retires before their earliest unreduced retirement date by:
    • 4% for each of the first 24 months; and
    • 3% for each of the next 36 months.
• At age 55 or older but less than age 60 with at least 2 years of pensionable service.
  • Pension is calculated as the actuarial equivalent of the unreduced pension:
    • Payble at age 60 if the member has 10-20 years of pensionable service; or
    • Payable at the normatl retirement date if the member has 2-10 years of pensionable service;
    • Calculations for these pensions are completed by NS Pension.

Survivor's Pension

The TPP also provides a survivor pension.  When a member passes away, a survivor’s pension is paid in the following order:

• First, to the surviving spouse;
• If no surviving spouse, then to surviving children under the age of 18 (or 25 if attending a post-secondary institution);
• If no surviving spouse, or surviving eligible children, then to a dependent (mother, father, brother, sister, or child of any age) who, by reason of mental or physical disability is dependent on the member at the time of the member’s death.

The survivor’s pension is 60%, and an additional 10% for each dependent child under 18 or up to age 25 if the child is attending a post-secondary institution) of:

• The member’s pension, if the member is retired; or
• The unreduced pension the active member would have received had they retired on the date of death.

Survivor Pension Options

Members, at the time of application for their pension, may elect to retire with a reduced pension to enhance their spouse’s survivor pension. Members may elect to:

• Increase the 60% survivor pension to 80% or 100%; and/or
• Provide a guarantee that 100% of their pension will be paid for 5, 10, or 15 years from their retirement date.

Once the member retires, the chosen survivor option cannot be changed.

It is important to note that the maximum total survivor’s pension is 100% of the member’s pension.

Deferred Pension

A member with two or more years of pensionable service and who has ceased to teach before becoming eligible for a pension may elect a deferred pension. The member would apply for one of the options previously described at the point in time when eligibility requirements are met.

Indexing

The Teachers’ Pension Plan has conditional indexing based on the funded level of the Plan:

• Funded level less than 90%;
  • No indexing will be paid.
• Funded level between 90 and 100%;
  • Trustee may pay up to 50% of CPI (Consumer Price Index).
• Funded level greater than 100%;
  • Trustee shall pay up to 100% of CPI, to a maximum of 6%, provided that the payment of indexing does not reduce the funded level of the Plan below 100%.

If indexing is to be provided on July 1st, it is calculated using the average of the Consumer Price Index (CPI) for each month in the 12-month period ending on the previous April 30th.

Members in their first year of retirement receive an escalation pro-rated to the number of months they were actually retired in the preceding year.