Retirement benefits

Your normal retirement date is the first day of the month coinciding with or following your 65th birthday. If you retire at age 65, your pension under the Concordia Pension Plan will essentially be based on the two following pension formulae:

Non-contributory formula

For each year of non-contributory credited service accrued prior to January 1, 2008, you earn an annual lifetime pension equal to:

For each year of non-contributory credited service accrued on or after January 1, 2008, you earn an annual lifetime pension equal to:

Contributory formula

For each year of contributory credited service, you earn an annual lifetime pension equal to:

If you joined the plan before January 1, 1966, you may earn a full 2% for each year of contributory credited service before that date.

You may retire on the first day of any month within 10 years preceding age 65, your normal retirement date. If you retire before age 65, here's how your pension benefits will be calculated.

• If you retire with at least 10 years of continuous service
• If you retire with less than 10 years of continuous service

If you retire with at least 10 years of continuous service

Non-contributory formula

For each year of non-contributory credited service accrued prior to January 1, 2008, you earn an annual lifetime pension equal to:

For each year of non-contributory credited service accrued on or after January 1, 2008, you earn an annual lifetime pension equal to:

Contributory formula

For each year of contributory credited service, you earn an annual lifetime pension equal to:

These benefits are subject to the limits set by the Income Tax Act and Regulations.

If you retire with less than 10 years of continuous service

Non-contributory formula

For each year of non-contributory credited service accrued prior to January 1, 2008, you earn an annual lifetime pension equal to:

For each year of non-contributory credited service accrued on or after January 1, 2008, you earn an annual lifetime pension equal to:

Contributory formula

For each year of contributory credited service, you earn an annual lifetime pension equal to:

You continue to accumulate benefits under the pension plan until your actual retirement. Or, when you reach your normal retirement date, you may advise Benefits Services, in writing, that you wish to stop accumulating credited service under the plan.

When you do begin to receive your pension under the Concordia Pension Plan, it will be based on the applicable pension formulae described under the section If you retire at age 65. In any event, your pension cannot be less than what you would have received had you retired at age 65, revalorized to reflect the delay in the commencement of payments.

In certain circumstances, you could begin to receive all or part of the pension payable to you before you actually retire. In any event, you must begin receiving your pension by December 1 of the year in which you reach age 69.

Benefits under the Concordia Pension Plan take into account benefits recognized under the Reciprocal Transfer Agreement between Québec universities, CREPUQ and CARRA, if applicable.

Pension payments are currently increased each June 1 by the same percentage as that of the increase in the Consumer Price Index (CPI) over the 12-month period that ended on the previous January 1, minus 2%. This indexation cannot exceed the fund's average rate of return over the 5 prior calendar years, less 5%.

If the investment returns of the pension fund are sufficient, pensioners can get indexation equal to the full increase in the CPI (i.e., they will receive up to the first 2% of the CPI).

The Income Tax Act and Regulations require the following pension limits.

• If you retire before age 65
  All benefits payable from the plan up to age 65, cannot exceed the limit set by the Income Tax Act and Regulations. The current limit is equal to the sum of the following:

  $2,444.44*
  MULTIPLIED BY
  your years of credited service

  *or such greater amount set by the Income Tax Act and Regulations

  PLUS

  1/35 of 25% of the average of the YMPE for the year of retirement and each of the 2 immediately preceding years
  MULTIPLIED BY
  your years of credited service, up to 35 years

  If you participated in the plan before 1992, other limits may apply for credited service before then. Your personal statement and the Pension Projection Tool take into account all applicable limits.

• If you retire at age 65 or after
  Total lifetime pension from the plan can never exceed:
  

  $2,444.44*
  MULTIPLIED BY
  your years of credited service

  *or such greater amount set by the Income Tax Act and Regulations.

In accordance with legislation, your annual contribution room to a personal RRSP or the Concordia Group Retirement Savings Plan (RSP) is reduced by your annual Pension Adjustment (PA). Your actual PA will depend on whether you are a contributory or a non-contributory member. You can use the Annual Pension Benefits Calculator to compare the RRSP contribution room you would have under the contributory and non-contributory options.