How we calculate your pension
Disclaimer: We make every effort to ensure that all information on this website is accurate and complete. Should any discrepancy exist, the Plan Documents, statutes, or regulations shall apply.
The Staff Pension Plan is a defined benefit pension plan, which means that the amount you will receive when you retire is calculated based on a benefit formula that uses your average salary, age at retirement, years of service, an applicable percentage, and any reductions or adjustments applied based on options you select. Each of these elements are described below.
Basic pension amount
The basic pension amount is calculated based on a formula, and represents the value of your annual pension before any adjustments are applied. Adjustments can take many forms, as summarized below.
Basic pension amount formula = (highest average salary) x (years of credited service) x (applicable percentage).
Each element of this formula varies with each scenario. Additional explanation is provided below.
Please also refer to the Calculation fact sheet for more information and calculation examples.
Applicable percentage
Determined in the Plan Document, based on the period of credited service and YMPE (Year's Maximum Pensionable Earnings).
Highest average salary
Calculated using the 60 consecutive months during which your basic salary was the highest. Members who work part-time are deemed to work full-time for the purposes of the calculation.
Credited service
The time period credited to an active member of the pension plan, based on actual time worked.
Reductions & adjustments
Once we have calculated the basic pension amount, we can apply the following reductions or adjustments (if applicable, and based on the options selected):
Early retirement reductions
Please refer to the Early Retirement fact sheet for more information.
Survivor benefits & optional forms of pension
Your pension will be paid for your lifetime regardless, but you can adjust the amount of the monthly pension payment by selecting an optional form of pension that provides different survivor benefits.
For example, if you choose a pension that pays better survivor benefits than the normal pension option, the monthly payment will be lower. Please refer to the Survivor Benefits fact sheet for more information.
Annual adjustments & Supplementary Retirement Benefit Account
Annual adjustments
At the end of each calendar year, your pension will be automatically adjusted, or "indexed", in response to movements in the Consumer Price Index (CPI), up to a maximum of 3%. This adjustment is prorated for your first year of retirement.
Supplementary adjustments
Funds permitting, this account allows an additional adjustment to bridge any gap between the annual adjustments and the actual CPI increase when it exceeds the 3% maximum. This is available to you if you have reached age 66 prior to January 1st of the year in which the adjustment is payable.