This example shows the importance of choosing a retirement date to take advantage of an eligibility service milestone.
Meet Yvette. She would like to retire early - that is before age 65. If she retires before age 60 and has less than 30 years of eligibility service her pension will be subject to early retirement reductions.
By retiring at age 59 with 14 completed years of eligibility service, Yvette is eligible to receive 94.0% of the benefits she has built to date. However, if she waits a few months, with 15 completed years of eligibility service, she will receive 95.5% of the benefit.
| Yvette's birthday is Feb 27, 1947. |
Yvette retires:
May 31, 2006
Age 59 |
Yvette retires:
Nov 30, 2006
Age 59 |
| Pension start date |
Jun. 1, 2006 |
Dec. 1, 2006 |
| Average annualized earnings |
$53,000 |
$53,000 |
| Contributory service |
13.8 years |
14.4 years |
| Eligibility service |
14.8 years |
15.4 years |
| Monthly basic lifetime pension |
$924 |
$977 |
| Monthly bridge benefit (payable to age 65) |
$222 |
$238 |
This example shows the importance of choosing a retirement date to take advantage of an age milestone.
Meet Mary. She would like to retire early - that is before age 65. If she retires before age 60, with less than 30 years of eligibility service, her pension will be subject to early retirement reductions. By retiring at age 59, Mary is eligible to receive 96.4% of the benefits she has built to date. However, at age 60, she would receive 100% of her accrued pension because no early retirement reduction is applied.
| Mary's birthday is June 3, 1946. |
Mary retires:
May 31, 2006
Age 59 |
Mary retires:
June 30, 2006
Age 60 |
| Pension start date |
Jun. 1, 2006 |
July 1, 2006 |
| Average annualized earnings |
$53,000 |
$53,000 |
| Contributory service |
17.1 years |
17.2 years |
| Eligibility service |
18.1 years |
18.2 years |
| Monthly basic lifetime pension |
$1,174 |
$1,225 |
| Monthly bridge benefit (payable to age 65) |
$282 |
$295 |
