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Preparing for retirement
- Members
- How your plan works
- Preparing for retirement
Under UPP, you decide when to start collecting your pension.
With a UPP pension, you can retire with an unreduced pension as early as age 60 if your age plus your eligibility service equal at least 80 points.
Keep in mind, if you’ve earned a pension under a participating employer’s prior plan, different early retirement eligibility rules and reductions may apply to the pension benefits earned for service under that plan.
When you can retire
Normal retirement
The normal retirement date is the end of the month in which you reach age 65, but you can continue to work (and earn pension benefits) up to November 30th of the year you turn 71.
Early unreduced retirement
You can retire with an early unreduced pension as early as age 60 if your age plus your eligibility service equal at least 80 points. For example, if you were 62, you would need at least 18 years of eligibility service to qualify for an early unreduced pension (62 + 18 = 80 points). Because of the stipulation that you must be at least age 60 to retire early, a member aged 58 with 22 years of eligible service would not qualify for an early unreduced pension.
Early retirement reductions
If you don’t qualify for an early unreduced pension, you can still retire as early as age 55 but your pension will be permanently reduced to reflect the fact that you will receive your pension for a longer period of time.
If you are an active member:
If you retire from your employment on an early retirement date, your pension will be permanently reduced by 5% for each year (prorated for partial years) that you are under age 65.
For example, if you decided to begin your pension at age 62.5 with 15 years of eligibility, your pension would be reduced by 12.5% ([65-62.5] x 5% per year).
If you are a deferred member:
If you terminated plan membership on or after your earliest retirement date and deferred your pension, the early retirement reduction above applies if you decide to begin your pension before your normal retirement date.
If you terminated plan membership prior to your earliest retirement date and deferred your pension, a different early retirement reduction applies if you decide to begin your pension before your normal retirement date. Instead, you will receive the actuarial equivalent of the pension that would have been payable if you had retired on your normal retirement date
Postpone your retirement
You can postpone your retirement until November 30th of the year in which you reach age 71. After this date your contributions will stop and you must elect a retirement income option.
Starting retirement
Once your monthly pension payments start, they will continue for the rest of your life.
Applying for your pension and giving notice of retirement
Your pension does not begin until we receive the necessary documentation and your notice that you wish to start your pension.
If you are an active member, you must provide your notice to your employer, who will in turn notify UPP to prepare your pension options. If you are a deferred member, you may notify UPP directly via secure message through the myUPP Member Portal.
Choosing your survivor benefit
When you pass away after retirement, your spouse, children, or designated beneficiaries may qualify for survivor benefits. The amount and type of benefit will depend on the payment options you choose at retirement. It’s important to know that these choices cannot be changed once your lifetime pension starts, even if your personal situation changes.
Frequently asked questions
Does UPP have projection/calculator tools?
We know projection tools are very important to the retirement planning process. The Pension Estimate Calculator will be available in the myUPP Member Portal later this fall. This tool will allow you to estimate your future pension using various scenarios, including different ages, dates, and pensionable earnings increases.
How is my pension impacted if I start my pension before or after my normal retirement date?
Your UPP pension is determined by a formula that is based on your pensionable earnings and service. The longer you work and contribute to UPP, the more pensionable service you will have and the bigger your pension will be.
You can retire with no reduction to your pension at any time after reaching the normal retirement date, or your early unreduced retirement date, whichever is earlier.
Your normal retirement date is the last day of the month in which you turn 65. Your early unreduced retirement date is the date your age and your eligibility service equal 80 or more, and you are at least 60 years of age.
You can retire as early as age 55, but if you have not yet reached your Early Unreduced Retirement or Normal Retirement Dates, your pension will be reduced by 5% for each year you are under age 65.
How much notice should I provide in advance of my retirement date?
Whether you are an active member submitting your notice to your employer, or a deferred member submitting your notice directly to UPP, please provide your notice at least 90 days in advance of your intended pension start date, otherwise there may be a delay to your first payment.
Can I go back to work after retirement?
There may be impacts on your pension if you return to work for a participating UPP employer after you start collecting a pension.
If you return to work for a participating UPP employer (in an eligible employment class) on a continuous full-time basis, your pension payments will stop and you will become a contributing member of UPP. You’ll build additional benefits and your pension will be recalculated when you retire again.
If you return to work for a participating UPP employer (in an eligible employment class) on a basis other than continuous full-time, you will have the option to continue receiving a pension, or to stop your pension payments and become a contributing member of UPP.
If you decide to start contributing to UPP again, you will build additional benefits and your pension will be recalculated when you retire again. If not, you will continue collecting your pension and working, but will not accrue any further service under UPP.
If you return to work for a non-UPP employer, there is no impact to your pension.
- © 2024 University Pension Plan