Retiring before the normal retirement age will affect your pension. Here are the key points to consider.
Calculating your reduced pension
The amount of your monthly pension payment will be reduced if you decide to retire early and do not meet the eligibility criteria for an unreduced pension.
If you have at least 10 years of contributory service and are at least 50 when your employment ends at WorkSafeBC, your pension will be reduced by three per cent for each year using the lesser of the age plus service or age rule:
- Age plus service rule—the sum of your age plus years of contributory service is less than 90
- Age rule—you are under age 60
In all other cases, your pension will be reduced by five per cent for each year under the age of 65.
For example, if you are 55 and have 33 years of service, your reduction would be six per cent based on the age plus service rule:
(90 - 88 [88 is the sum of your age and years of service] = 2) x 3% = 6%
We use the lesser of the age plus service rule or age rule. If we used the age rule, your pension reduction would be 15 per cent:
60 - 55 = 5 x 3% = 15%
If you end your employment at WorkSafeBC with fewer than two years of contributory service, your pension will be reduced by five per cent per year for every year you are under 65.
For example, if you are 55 and have one year of contributory service, your reduction would be 50 per cent:
65 - 55 = 10 x 5% = 50%
Pension reductions are pro-rated by month for partial years of contributory service.