How we calculate your pension
We calculate your pension based on your years of pensionable service and the average of your five highest years of salary.
Your lifetime monthly pension payment is calculated based on your pensionable service (to a maximum of 35 years) and average of your highest five years of salary. Your age at retirement and chosen pension option also determine the value of your monthly pension payment.
The following formula is used to calculate your pension based on a single life pension guaranteed for 10 years:
Before age 65
2% × five-year highest average salary (HAS) × total pensionable service
This formula includes the bridge benefit.
At age 65 and after
2% × HAS × total pensionable service
minus the bridge benefit, which is calculated as follows:
0.7% × (lesser of previous year's maximum pensionable earnings or HAS)
× pensionable service
This pension formula is used to calculate a lifetime monthly pension amount. The actual monthly pension payment you receive will depend on several other factors, including:
Your age when you retire
The pension option you choose
If you retire when you are younger than 65 and do not meet the criteria for an unreduced pension
After you retire, your monthly pension payment may increase if there is an annual cost-of-living adjustment (COLA). This adjustment is added to your pension and, if applicable, your bridge benefit, to help keep pace with increases to the cost of living.
COLA is based on the Canadian consumer price index and is applied to your pension in January each year if sufficient funds are available in the plan's inflation adjustment account.
Although future COLAs are not guaranteed, once you have received the adjustment it becomes part of your lifetime pension for all subsequent years.