Eligibility Service Milestone
This example shows the importance of choosing a retirement date to take advantage of an eligibility service milestone.
Meet Yvette, she would like to retire early – that is before age 65. If she retires before age 60 and has less than 30 years of eligibility service her pension will be subject to early retirement reductions.
By retiring with 14 completed years of eligibility service, Yvette is eligible to receive 94.0 per cent of the benefits she has built to date. However, with 15 completed years of eligibility service, she will receive 95.5 per cent of the benefit.
Yvette’s birthday is Feb 27, 1947.
| Yvette
retires: May. 31, 2006 Age 59 |
Yvette
retires: Nov. 30, 2006 Age 59 |
|
| Pension start date | Jun. 1, 2006 | Dec. 1, 2006 |
| Average annualized earnings | $53,000 | $53,000 |
| Contributory service | 13.8 years | 14.4 years |
| Eligibility service* | 14.8 years | 15.4 years |
| Monthly basic lifetime pension | $924 | $977 |
| Monthly bridge benefit (payable to age 65) |
$222 | $238 |
*Effective July 1, 2005, HOOPP replaced Plan membership with
eligibility service. Previously, if you were a member of the
Plan and did not contribute, for whatever reason, you would
continue to accrue Plan membership. As of the change to eligibility
service, if you are a member of the Plan and do not contribute,
you accrue neither contributory service nor eligibility service.
For this reason, if you were a Plan member prior to July 1,
2005, and had a period for which you did not contribute, your
eligibility service may exceed your contributory service.
To see how we arrived at these figures, check our Eligibility milestone notes.
