FAQs
Members
What are "pensionable earnings"?
Pensionable earnings refer to your annual gross base salary paid by your employer, including Labrador Allowances, and any Principal, Vice Principal, Department Head, etc. bonuses.

The Income Tax Act (ITA) limits the amount of pension that can be earned under the Teachers’ Pension Plan. In the Teachers’ Pension Plan, the ITA limit for your pensionable earnings is capped at $168,546 in 2018. This limit increases annually.
What is "pensionable service" in the Teachers’ Pension Plan?

Pensionable service is calculated based on the number of days a teacher has worked during which time the Teacher received pensionable earnings, and during which time the required contributions are made to the Pension Plan either by the teacher or on the teacher’s behalf. It is the number of actual days worked in a teaching year, excluding overtime, in relation to those of a full-time member.

Credited service is used to calculate a member's pension benefit in the Teachers’ Pension Plan.

Substitute Service is not automatically included; it must be transferred/purchased while a teacher is in a replacement or permanent position for it to be counted in the teacher’s pensionable years.

Purchased University Years is Pensionable Service.

If I work part-time, does this impact my pension?

There are two types of part-time service:

If you are participating in the TPP, then the credited service is pro-rated during the period that you work part-time. As an example, someone working at 60% for a full year would receive credit for 0.6 years of service.

For some part-time work you would contribute to the Government Money Purchase Pension Plan (GMPP). If you become an active member in the TPP, you can apply to have the part-time service transferred to the TPP. Please note, there are costs associated with this transfer.

How are my Final Average Earnings determined?
Final Average Earnings means the average of the best eight years of a member’s pensionable earnings since their enrolment in the TPP.
How is the Pension Adjustment (PA) calculated, and how does it impact my RRSP contribution room?
The Pension Adjustment (PA), which is recorded in box 52 of your T4 in the context of the tax-assisted retirement savings provisions of the Income Tax Act, measures the "value" of the pension earned in a Registered Pension Plan (RPP) each year. Your current PA will reduce your RRSP contribution room in the following year (e.g. your 2015 PA will reduce your RRSP room for 2016).

The formula to calculate the TPP PA is as follows: Current Year Pensionable Earnings x 2% x 9 - $600 = PA
What is my unreduced retirement date?
Your unreduced retirement date is the age at which you can receive a pension without any reduction. Generally, you can receive an unreduced pension at age 60. However, you would also be eligible once you have 30 years of worked, pensionable service or when you reach age 55 providing you have 25 years of pensionable service.
What is the "Normal Form" of pension?
The Normal Form of pension is the way your pension is paid, in accordance with the terms of the Pension Plan.

In the Teachers’ Pension Plan, the Normal Form of pension for members is a 60% survivor lifetime pension.
How are the employers’ contributions to the TPPC Plan determined?
The employers are required to match all regular contributions made by the Plan member. The current rate of contributions is 11.35% of the member's pensionable earnings. This is paid by the Plan member and 100% matched by the employer.
What happens to my pension if I leave prior to becoming eligible for an unreduced pension retirement?

Upon termination of employment, you would have the following options:

  1. You can leave your contributions in the Teacher’s Pension Plan and choose to start receiving a pension once you become eligible, typically at age 62. You can take your earned pension as a lump-sum payment (or “commuted value”) and transfer up to a maximum tax-sheltered amount defined by the Income Tax Act (ITA) in a locked-in retirement account. The money will be locked in and must be used to provide you with retirement income any time after your 55th birthday. The balance, if any, would be paid out to you in cash, less applicable taxes.
  2. If you move to a new employer, you can transfer the lump-sum value of your pension to your new employer’s pension plan, provided that your new plan accepts transfers.
What is the spousal pension entitlement under the Teachers’ Pension Plan?
Following your death, your spouse would receive a lifetime pension of an amount equal to 60% of the amount you were receiving prior to your death. If you were under 65 at the time of death, the pension would be reduced due to CPP the month after you were to reach age 65.
Who do I contact when I want to retire?
As soon as you have established a date for your last day at work (a minimum of 3 months’ notice is recommended to ensure timely processing of your pension documents), you need to inform your employer via a signed letter.

You will be mailed a retirement package to your home address that contains the documents you will need to apply for your pension, along with other helpful information.