Common use of Other Early Retirement Clause in Contracts

Other Early Retirement. An employee who is age 58 retires with 20 years of credited service on January 1, 2007. His pension is determined as follows: He has 9 years of credited service at December 31, 1995. His annualized gross pensionable earnings in 1995 were $60,000. His pension is upgraded to December 31, 1995 to provide a pension calculated as follows: $60,000 x 9 years x 1.3% = $7020 annually His gross pensionable earnings for each year from 1996 to 2006 were $63,000 and he had a full year of credited service in each year. His pension credit for the period 1996 to 2006 is: $63,000 x 1.35% x 11 years = $9355.50 annually His total pension at December 31, 1996 is: $16,375.50 annually or $1364.63 monthly His pension is reduced for early retirement, as he is not eligible for 85 Point Retirement. He is retiring 7 years early. His pension is reduced by (7 years x 12 x 1/3%) = 28% $1364.63 x (100% - 28%): $982.54 monthly If he has a spouse, he may elect to have his pension reduced by 10% to provide the 60% spousal option, resulting in a pension of: $884.28 monthly At age 60, he can apply for a reduced CPP pension of approximately $510 monthly At age 65, he will be eligible for OAS pension of approximately: $400 monthly His total income from company and government sources at age 65 will be approximately: $1892.54 monthly