Indexing of Allowances

Allowances are adjusted each January 1, by 80% of the percentage increase obtained by dividing the Canadian consumer price index for the 12 months ending on the 31st day of October of the previous year by the average consumer price index for the 12 months ending on the 31st day of October one year earlier.

On January 1 of the first year of retirement, the adjustment is prorated and applies only to that portion of the year for which the allowance was paid.

Deferred Allowances

Teachers who cease to teach prior to meeting eligibility requirements and leave their contributions in the Teachers Superannuation Fund, will be eligible to receive an allowance when their age is such that they meet eligibility requirements. This deferred allowance is calculated in the same manner as for teachers who were teaching at the time of retirement.

After four months, teachers who have ceased to teach and who are not in receipt of an allowance from the Income Continuance Plan, and who have one year of eligibility service can apply to have the commuted value of the deferred allowance transferred to another registered pension plan or a registered retirement savings plan.

The plan to which these funds are transferred may not permit cash withdrawals except in the event of the death of the teacher. Direct transfers are subject to CRA maximums. Any amount in excess of the CRA maximum must be paid in cash and is subject to income tax.

The commuted value transferred is subject to a minimum of teacher contributions plus credited interest.

Note: Teachers selecting this option have no further rights under the Plan and no right of reinstatement.