Retirement Age Milestone
This example shows the importance of choosing a retirement date to take advantage of an age milestone.
Meet Mary, she would like to retire early – that is before age 65. If she retires before age 60, with less that 30 years of eligibility service, her pension will be subject to early retirement reductions. By retiring at age 59, Mary is eligible to receive 96.4 per cent of the benefits she has built to date. However, at age 60, no reduction on early retirement is applied.
By retiring at age 59, Mary is eligible to receive 96.4 per cent of the benefits she has built to date. However, at age 60, no reduction on early retirement is applied.
Mary’s birthday is June 3, 1946.
| Mary retires: May 31, 2006 Age 59 |
Mary retires: June 30, 2006 Age 60 |
|
| Pension start date | Jun. 1, 2006 | July 1, 2006 |
| Average annualized earnings | $53,000 | $53,000 |
| Contributory service | 17.1 years | 17.2 years |
| Eligibility service* | 18.1 years | 18.2 years |
| Monthly basic lifetime pension | $1,174 | $1,225 |
| Monthly bridge benefit (payable to age 65) |
$282 | $295 |
*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 what ever 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 Retirement age milestone notes.
