RETIREMENT PLANNING

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• RETIREMENT PLANNING

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Services Offered

• Pension Estimates
• Tax Calculations
• Benefit Costing
• EAP referral (1 hour financial services)

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Notice Periods

• Support Staff
• 2 weeks notice
• Administrative Staff
• 30 days notice
• Academic Staff
• 90 days notice

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When Can You Retire?

• Unreduced Pension 3 Factors
• Age 65
• 60/20 factor
• 85 factor
• Reduced Pension
• Age 50 54 with 20 years service
• Age 55 with at least 2 years of service

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Reduction Factor

• 3 reduction factor for every year or .25 per
  month away from the closest unreduced factor

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Calculating Your Pension

• Lifetime Pension
• 1.3 x average pensionable x credited
• earnings up to the service
• average YMPE
• Plus
• 2.0 x average pensionable x credited
• earnings in excess service
• of the average YMPE
• (less any applicable reduction factor)

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Calculating Your Pension

• Bridge Benefit
• Available only if your pension begins before
  age 65 and continues until age 65
• --------------------------------------------------
  ------------
• 0.7 x average pensionable x credited
• earnings up to the service
• average YMPE from Jan/66
• (less any applicable reduction factor)

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Calculating Your Pension

• Assumptions Average salary is 70,000 and 30
  years of pensionable service
• 1.3 x 39,780 x 30 years 15,514.20
• Plus
• 2 x 30,220 x 30 years 18,132.00
• Plus the bridge (to age 65)
• 0.7 x 39,780 x 30 years 8353.80
• TOTAL 42,000

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Calculating Your Best 5 Years

• Calculated on your best 60 consecutive months.
• You have the option to make your current years
  annual leave pensionable upon retirement

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Calculating Your Pension

• Example
• Annual leave at retirement 10,000
• Add 10,000 into the calculation for average
• pensionable earnings for a new average of
• 72,000

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Calculating Your Pension

• Assumptions Average salary is 72,000 and 30
  years of pensionable service
• 1.3 x 39,780 x 30 years 15,514.20
• Plus
• 2 x 32,220 x 30 years 19,332.00
• Plus the bridge (to age 65)
• 0.7 x 39,780 x 30 years 8353.80
• TOTAL 43,200 (difference 1200 more per
  year)

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Calculating Your Pension (with a penalty)

• Same salary and years of service assumption but
• the employee is 53 and has a 3 penalty
• __________________________________________________
  __________________________________________________
  ________________________________
• 1.3 x 39,780 x 30 years 15,514.20
• Plus
• 2 x 32,220 x 30 years 19,332.00
• Plus the bridge (to age 65)
• 0.7 x 39,780 x 30 years 8353.80
• TOTAL 43,200 less the 3 penalty
  41,904 (difference of 1296)

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Canada Pension Plan (CPP)

• Introduced in Canada Jan. 1, 1966
• CPP can begin as early as age 60, with a 6
  penalty per year away from age 65.
• The offset to your CAAT Pension Plan does not
  occur until you reach age 65, regardless of when
  you elect to take CPP

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Old Age Security (OAS)

• Entitled to OAS at age 65.
• Entitlement is based on residence in Canada

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CPP, OAS and CAAT Pension

• Lifetime Pension is 34,846.20
• Bridge Pension is 8353.80 43,200
• Employee retires at age 58
• __________________________________________________
  __________________________________________________
  _____________________________
• Age 58 Age 60 Age65
• CAAT Pension 43,200 43,200 34,846
• CPP Pension 0 6,962 6962
• OAS Pension 0 0 5,661
• TOTAL 43,200 50,162 47,469

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Useful Web sites

• CPP, OAS, GIS
• http//www.sdc.gc.ca/en/home.shtml
• Canadian Association of Retired Persons
  http//www.fifty-plus.net/
• Ontario Colleges Retirees Association
  http//www.caatretirees.org/
• CAAT Pension Plan http//www.caatpension.on.ca/in
  dex.html
• Human Resources Web Page http//myalgonquin.algon
  quincollege.com/departments/hr/

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Retiree Privileges

• You have the option of maintaining your email
  account and server access from home
• You can take courses at the College on the same
  basis as full time employees
• Access to College facilities

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Human Resources Contacts

• Pension estimates
• Please contact either Connie Powers or Kelly
  Irwin
• Connie (x5119) powersc_at_algonquincollege.com
• Kelly (x5121) irwink_at_algonquincollege.com
• Benefits questions
• Please contact either Kelly Irwin or Diane Ross
  Mathers
• Diane (x2080) rossmad_at_algonquincollege.com