Retirement Benefit
Lifetime Pension
When you are eligible and choose to retire, you will receive a reliable monthly pension from the STRP for your lifetime.
Your lifetime pension is determined by a formula that is based on your earnings and service. If you retire before you are eligible for an unreduced pension, your retirement benefits will be reduced to reflect your early retirement date.
Special provisions apply to members who participated in the Teachers’ Annuity Plan. See Former Annuity Plan (Prior Plan) Members below.
Bridge Benefit
In addition to your lifetime pension, when you retire you will receive a monthly bridge benefit for service up to June 30, 2015. This bridge benefit will be paid until you are age 65. The bridge benefit formula is based only on your earnings and service up to June 30, 2015.
Conditional Upgrades
All or part of your lifetime pension may receive a conditional upgrade or increase on June 30 of any plan year(s) before you retire. Conditional upgrades range from zero to 100 percent of inflation up to a maximum of five percent per year. Inflation is determined as the increase in the consumer price index for Canada for the 12 months ending on the previous October 31.
The level of conditional upgrade for any plan year depends on the financial status of the Plan, as determined by actuarial funding valuations, and applicable pension legislation. All conditional upgrades must be approved by the STF Executive on the recommendation of the STF Pension and Benefits Board of Directors.
Who is eligible to receive a conditional upgrade?
You are eligible to receive an approved conditional upgrade if you meet all of the following requirements on June 30 of the applicable plan year (the effective date):
- You earned contributory service while employed under a continuous, temporary or replacement contract during that plan year OR the immediately preceding plan year.
- You have not withdrawn any teacher required contributions from the Plan as a result of termination.
- You have not retired on or before the effective date of the conditional upgrade.
Former Annuity Plan (Prior Plan) Members
Teachers who participated in the former Teachers’ Annuity Plan prior to 1991, are required to have a minimum amount of service after June 30, 1991, to be eligible for a pension from the STRP.
If a former annuity plan member is eligible for an STRP pension, a test will be performed at the member’s retirement date to ensure the actual pension is not less than that which can be provided by their entitlement under the annuity plan.