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(i)
Basic Allowance |
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The
basic retirement allowance to which a teacher is entitled
is an annual allowance calculated using the following
formula: |
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Annual
Allowance = |
2%
x Years of Service*
x
Average of Highest 5 Years' Salaries** |
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*
Includes contributory service and is limited to a maximum
of 35 years service. |
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**
Part-time salaries are calculated
as though the teacher was teaching full-time during the
years of highest salary. |
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(ii)
Upward Adjustment |
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A
teacher who retires prior to age 65 may elect to receive
a larger allowance before age 65 and a smaller allowance
after that date. See Age 65 (b) below. |
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When
a teacher attains age 65, retirement allowances may be
available from three sources: the Canada Pension Plan,
Old Age Security and the Saskatchewan Teachers Superannuation
Plan. |
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(a)
Canada Pension Plan Integration |
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All
teacher pensions are reduced at age 65 (unless you
are a member of a religious order). This is not an
option you can choose. This reduction occurs due to
the integration for the Teachers' Superannuation Plan
with the Canada Pension Plan(CPP).- Because of
this integration, you were contributing less to the Teachers'
Superannuation Plan than you would have otherwise. At
age 65, your monthly pension form the Teachers' superannuation
Plan will be reduced by the amount shown on your personalized
Estimate of Pension statement (this amount will also be
adjusted for the cost of Living increases since your retirement)
If you choose to receive your CPP pension as early as
age 60, you will likely notice a decrease in your total
pension income at age 65.. This decrease results because
the CPP pension is reduced by 6% for every year that you
are under age 60. (e.g. If you apply for the CPP benefit
at age 60, the total CPP reduction is 30%.) The reduction
for your teachers pension is done at age 65, regardless
of your actual decision to apply for early CPP. |
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(b)
Upward Adjustment |
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If
you retire before age 65, you can choose to receive an
optional advance in addition to your monthly pension.
When you receive a personalized Estimate of Pension statement,
the amount of the advance is shown on Option B. This is
meant to level out your Saskatchewan Teachers' Superannuation
pension and Old Age Security (OAS) pensions before and
after age 65. You will receive this advance each month
until age 65. At age 65, your monthly pension will be
reduced by the amount also shown in Option B (adjusted
for cost of living increases since your retirement). The
reduction applies even if you are not eligible for OAS
benefits. |
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Note: |
Application
is required for Canada Pension Plan or Old Age Security
Benefits. Contact the Department of Human Resources and
Skills Development at 101 - 22nd Street E., Saskatoon,
S7K 0E1, 1-800-277-9914, or 5th Floor, 2045 Broad Street,
Regina, S4P 2N6. |
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Notwithstanding
any other provisions regarding the calculation of allowances,
the minimum allowance payable shall not be less than $192
annually for each year of contributory service for those
whose allowances are effective on or after July 1, 1993.
The minimum for those allowances effective prior to July
1, 1993 is $96 annually for each year of contributory
service. If the allowance does not exceed 2% of the year's
maximum pensionable earnings in effect in the year in
which the entitlement to the allowance occurs the commission
will pay the commuted value of the allowance to the member
in lieu of the allowance. |
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