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PENSION INFORMATION |
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Faites un déclic ici pour
Caractéristiques Principales
de la
Teachers' Superannuation Act de l'Ile-du-Prince-Édouard |
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MAJOR
FEATURES OF THE P.E.I.
TEACHERS' SUPERANNUATION ACT |
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1.
ADMINISTRATION
The Act is administered by a Superannuation Commission comprised
of three persons from the Department of Education and Early
Childhood Development, one of whom is to be chairperson, three
teachers appointed by the P.E.I.T.F. and one person from the
Department of Finance.
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2.
CONTRIBUTIONS
All teachers under contract contribute to the Teachers’ Superannuation
Fund
(T.S.F.) and the Canada Pension Plan (C.P.P.).
The contribution rates are as
follows:
A. On the portion of the salary up to the amount
of the year’s maximum
pensionable earnings (YMPE), 4.95% to the CPP and 7.3% to the
TSF.
(For 2010, the YMPE is $47,200.).
B. On the portion of the salary that exceeds the YMPE, 9% to the TSF.
Note: The maximum contribution to the CPP in 2010 is
$2,163.15.
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3.
SUPERANNUATION FUND
Teachers' contributions, less their C.P.P. contributions, are
placed in the
Teachers’ Superannuation Fund (T.S.F.).
Prior to July 1, 1988, the fund was
invested only in guaranteed
debentures. On that date, the fund was turned over
to professional money
management firms and the fund may now be invested in
equities, mortgages, bonds,
debentures, etc. subject to the investment policy of
the PEI Government. Returns
from these investments are placed back in the
fund. The fund is audited
yearly and currently amounts to $490.4 million as of
June 30, 2008. |
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4.
ELIGIBILITY FOR PENSION
a. Regular Service Pension - A teacher who is age 60 or
more and has 2 or
more years of
service is eligible for a pension upon ceasing to teach and upon
application.
b. Early
Service Pension - A teacher who has 35 years of service or a
teacher
who is
age 55 or more and has 30 or more years of service is eligible for
a
pension
upon ceasing to teach and upon application.
c. Disability
Pension - A teacher who has 2 or more years of service and who
ceases to
teach because he/she is totally and permanently disabled is
eligible for
a pension upon application. The definition of disability is as
follows:
"totally and permanently disabled" means, in relation to an
individual,
suffering from a physical or mental impairment that prevents the
individual
from
engaging in any employment for which the individual is reasonably
suited
by virtue of the individual’s education, training or experience,
and that
can
reasonably be expected to last for the remainder of the
individual’s
practical working life."
d. At or between age
55 and 60 with at least 2 years of service but less than 30
years with a
penalty.
The
penalty is the lesser of:
(a) one
quarter per cent for each full month between the date of actual
retirement and the date the person reaches the age of sixty years;
or
(b) one
quarter per cent for each full month between the date of actual
retirement and the date the person would reach thirty years of
service
from the pension that would otherwise be calculated if the person
were age
60.
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5. PENSION CALCULATION
Years of Service X 2% X Average
of 5 years of highest salary.
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6.
INTEGRATION WITH C.P.P.
The Teachers’ Superannuation Act (T.S.A.) is integrated with the
Canada
Pension Plan (CPP). This
results in a reduction in the pension payable by the
TSA. The age of integration is
65. The formula for integration reads as follows in
section 22(1) of the Act:
Where a person
receiving a pension under this Act reaches the age of sixty-five
years, the pension payable
under this Act shall be reduced by 0.7% of the
person’s average salary rate
for the highest five years of salary, for each year of
service after July 1, 1972, and
that reduction shall be computed only on that
part of the person’s salary
which constitutes the "Year’s Maximum Pensionable
Earnings" as defined in the
Canada Pension Plan.
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7.
REFUNDS
Any teacher who leaves
teaching is eligible to receive a refund of contributions plus
interest of 4% on these contributions.
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8.
SURVIVOR'S BENEFITS
If a teacher who has 2 or more
years of service or a teacher who is on pension
dies, the teacher's spouse is
entitled to 60% of the pension for which the
teacher was eligible or which
the teacher was receiving. Each child under 16
will receive 10% of the pension
up to a maximum of 3 children. This allowance
will continue up to age 25 if
the child is in attendance at a post secondary
education institution.
As a result of an amendment to the Act in the spring of 1987, a
teacher's
surviving spouse shall continue to
receive the survivor's benefits in the event of
remarriage.
If a teacher who has
fewer than 2 years of service dies, the teacher's estate
receives a refund of contributions
and interest thereon.
If a teacher who has 2 or
more years of service or a teacher who is on pension
dies leaving no spouse but having dependent
children, then 60% of the pension
for which the teacher was eligible or which
the retired teacher was receiving will
be paid to the dependent children.
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9. EMPLOYER CONTRIBUTIONS TO THE
FUND
Employers
contribute to the Superannuation Fund by matching the
contributions paid by
teachers. The Employers have matched teachers'
contributions since
September, 1979.
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10. ESCALATION
All pensions including deferred pensions, are
increased on July 1 of each year. This increase is based on the
increase in the CPI for Canada for the previous year. The
increase will be 60% of the CPI, to a maximum of 4%.
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11. MINIMUM PENSION
The minimum pension payable under the
Act is calculated by multiplying $100.
per year of service by the
number of years of service to a maximum of 35 years. |
Inquiries re pension should be made to
Michel Plamondon, Federation House, telephone 569-4157 or toll
free 1-800-903-4157.
Revised June, 2010
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