Pension Eligibility and Formula

Pension Eligibility

The minimum pensionable service to be eligible for a pension is:

five years after August 31, 1992,
five years that includes a period of pensionable service in each of the 1991-92 and 1992-93 school years, or
10 years at any time.

The earliest date that you can begin receiving your ATRF pension is the first of the month following the later of:

your 55th birthday,
the termination of your last teaching contract,
the last accrual of pensionable service with ATRF, or
the date when your last substitute service was purchased.

Pension Formula

Your pension at retirement is determined by a formula that uses your pensionable service and the average of your pensionable salary in the five consecutive years of pensionable service when your pensionable salary was highest.

Below is the formula used to calculate your pension before any applicable reductions.

2.0% of the five-year average pensionable salary
(multiplied by)
pensionable service before 1966
(plus)
1.4% of five-year average YMPE
(multiplied by)
pensionable service after 1965
(plus)
2.0% of the five-year average pensionable salary above the average YMPE
(multiplied by)
pensionable service after 1965

Your five-year average pensionable salary may be limited by the maximum pensionable salary (or salary cap) in accordance with the Income Tax Act. The monthly salary cap for the current and previous years, dating back to 1992, can be found on the Contribution Rates page.

Unreduced and Reduced Pensions

The earliest date you are eligible for a pension is the first of the month following the later of:

your 55th birthday,
the termination of your last teaching contract,
the last accrual of pensionable service with ATRF, or
the date when your last substitute service was purchased.

Your age on the earliest date is used to calculate any reduction to your pension benefit. If the earliest date is before you are eligible for an unreduced pension, your pension will be permanently reduced. A reduction is applied to the pension benefit to reflect that the pension will be paid for a longer period of time.

Unreduced Pension
You can receive an unreduced pension if on the earliest date:

the sum of your age and pensionable service is at least 85 (often referred to as the age-plus-service, 85 index, or 85 factor), or
you are at least 65 years of age (normal retirement).

Reduced Pension
If you are not eligible for an unreduced pension on the earliest date, your pension will be reduced by the lesser of the following two calculations:

2% for each year or portion of a year that your age-plus-service index is less than 85, or
2% for each year or portion of a year that your age is less than 65.

The maximum reduction is 20%.

Examples of Reduced Pensions

In these examples, the member does not accrue or purchase additional service after terminating their last teaching contract.

1. Pat terminates their teaching contract at age 55 with five years of pensionable service. They would have an index of 60, which is 25 years short of the 85 index versus 10 years short of age 65. As a result, there would be a 20% reduction in pension. (Calculation: 10 x 2% = 20% reduction)

2. Cam terminates their teaching contract at age 60 with 22.5 years of pensionable service. They would have an index of 82.5, which is 2.5 years short of the 85 index versus five years short of age 65. As a result, there would be a 5% reduction in pension. (Calculation: 2.5 x 2% = 5% reduction)

3. Mel terminates their teaching contract at age 64 with 17 years of pensionable service. They would have an index of 81, which is four years short of the 85 index versus one year short of age 65. As a result, there would be a 2% reduction in pension, even if they wait until age 65 to apply, since their age was 64 on the earliest date.
(Calculation: 1 x 2% = 2% reduction)

Reduced Pension Examples Table
Example	Age at Contract Termination	Years of Pensionable Service	85 Factor	Years Short of 85 Factor	Years Short of Age 65	Reduction Calculation
Pat	55	5	60	25	10	20%
Cam	60	22.5	82.5	2.5	5	5%
Mel	64	17	81	4	1	2%

Using the Pension Calculator

Sign in to MyPension if you would like a personalized estimate of your pension, including information about when you would be eligible to retire with an unreduced pension. Need some guidance on how to use the pension calculator to create estimates? View the Using the Pension Calculator video for instructions.