We are pleased to announce that as plan partners we have come to agreement on the provisions in the Agreement in Principle.
Please click here to read more.

Changing reduction factors

Why is it proposed to change the reduction factors?

Currently, when members retire before the age of 60, they receive a subsidy from the plan to offset the cost of retiring early. When one retires early, it is expected that they will receive their pension for a longer period of time.

While approximately only a third of members retire prior to age 60, the cost of early retirement is borne by all plan members. Increasing the reduction factor for pre-age 60 retirement improves equity so that the cost is not borne by those who do not or cannot retire early. The savings from this change helps to fund the improvement to the lifetime benefit for the majority of members.

Changes to Reduction Factors for Group 1

The amount a pension is reduced is based on a combination of your age and contributory service.

Plan partners are proposing to change the reduction factors for early retirement as part of the plan redesign. 


Service to December 31, 2021
Service on and after January 1, 2022
3%* for each year before age 60 or Rule of 90
6.2% for each year before age 60

*A 5% reduction rate is used for those who terminate service before age 50 or between age 50 and 55 with less than 10 years of contributory service.

Service to December 31, 2021
Service on and after January 1, 2022
3% for each year before 65
5.2% for each year before age 65

Reductions are prorated by month for partial years.

The current early reduction rules, including the Rule of 90, will still be available for past benefit accruals. For example, general members (Group 1), who retire before age 65 with service prior to January 1, 2022, will be entitled to use the current reduction rules with respect to pre-January 1, 2022 service.