The following has been prepared as a guide for teachers who are contemplating retirement.

These notes contain information on:

1.   procedures to follow in applying for a pension under the Teachers' Superannuation
     Act;

2.   procedures to follow in applying for a service gratuity under Section 13,
     Memorandum of Agreement;

3.   procedures to follow in applying for Canada Pension;

4.   procedures to follow in applying for Old Age Security;

5.   the application of the Employment Insurance Act;

6.   Group Life and Health Insurance coverage for retired teachers;

7.   Substitute Teaching;

8.   Retired Teachers' Association.

1. Teachers' Pensions

    A retirement allowance is payable to teachers who have retired:

    a. at or after age 60 with not less than five (5) years of pension service, or

    b. at or between age 55 and 59 with 30 or more years of pension service, or

    c. with 35 or more years of pension service; with the calculation as follows:

        Years of Pension Service x Average of five years of highest salary
                       50

   d. At or between age 55 and 60 with at least 5 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.

     To apply for a pension, you may receive the necessary form from The
     Superannuation Commission, P. O. Box 2000, Charlottetown C1A 7N8 (telephone
     368-4004, Fax 368-6622).

     If you are retiring on June 30, you should submit your application to the      
     Superannuation Commission NO LATER THAN MID-MAY.

     If you are applying for a disability pension, you should submit your application for
     pension before the termination of your sick leave. The definition of disability reads
     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.

     Service pensions will be effective the day after you meet the eligibility
     requirements.  Disability pensions are effective the day after your last day of paid
    sick leave. In both cases pensions are payable monthly by direct deposit in the last
     week of each month.

     The Teachers' Superannuation Act provides for pensions to be increased by 60% of
     the Consumer Price Index, to a maximum of 4% per year. This escalation takes
     place once a year and becomes effective on the July cheque each year.

2. Service Gratuity

    A service gratuity is payable to a teacher who has retired and who meets one of the
    criteria in (a) and any one of the criteria in (b), (c) or (d).

    a. The teacher has ten or more years of continuous service immediately prior to
        employment termination, OR has 20 or more years of total service;

        and meets one of the following criteria:

    b. the teacher retires at age 55 or more, or

    c. the teacher retires having 30 or more years of service, or

    d. the teacher's employment terminates because of disability, death, or contract
        termination under Section 90 of the School Act.

    The gratuity is calculated on the basis of four days pay for every year of service with
    an employer on P.E.I., including fractional years, for which the teacher has made
    contribution to the P.E.I. Teachers' Superannuation Fund, not to exceed 100 days.

    The number of days accumulated is divided by 196 and the result is multiplied by
    the teacher's salary in effect on the date of termination of employment.

    To receive the gratuity a teacher who qualifies must write to the Superintendent of
    the Unit and request the gratuity. The teacher should also indicate whether he/she
    wishes to receive the gratuity in July or wishes to defer the gratuity until January of
    the following year, for income tax purposes.

    The gratuity is payable in a lump sum and income tax will be deducted at source.
    The gratuity may be paid directly into an RRSP for any service prior to 1996 and the
    teacher may defer any taxes on the gratuity until the RRSP is de-registered.

    A teacher claiming a gratuity because of disability must submit evidence of
   disability to The Superannuation Commission, Department of Education, PO. Box
   2000, Charlottetown, C1A 7N8.

3. Canada Pension Plan

    Canada Pension is payable separate from the teacher's pension. You are eligible for
    Canada Pension benefits, on a reduced basis, at age 60 if you substantively retire
    from the work force. Unreduced Canada Pension benefits are available at age 65.
    The reduction which applies to anyone who receives benefits prior to age 65 is ½ of
    one percent for every month that a person is below the age of 65.

    The Teachers’ Superannuation Act (TSA) is integrated with the Canada Pension
    Plan (CPP). This results in a reduction in the pension payable by the TSA.
    Integration will occur at age 65 or immediately, if a teacher receives a disability
    pension from the TSA 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.

     Application forms and further information are available at Human Resources
     Development Offices, 1-800-277-9914 (English) or 1-800-277-9915 (French).

    You should apply for this benefit at least four months prior to the date on which you
     wish the benefits to commence.

4. Old Age Security

    A teacher is entitled to the Old Age Security Pension at age 65. YOU MUST
    APPLY FOR IT!

    Three months prior to attaining age 65 you should pick up an application form from
    the Human Resources Development Offices in Charlottetown or Summerside,
    complete it and mail it.

    The maximum monthly benefit payable as of January 1, 2008 is $502.31. This figure
    is adjusted quarterly for the cost of living.

5. Employment Insurance

    Regular employment insurance benefits are not available to most teachers who
    receive a pension because pensions are regarded as income for employment
    insurance purposes.

    If your pension income is below the employment insurance benefit rate you may be
    eligible for some benefits. You must be available for work, actively seeking work and
    apply for the benefit.

    Further information is available from your local Human Resources Development
    Canada Offices.

6. Group Life and Health Insurance

    A teacher who retires before, at or after age 60 and before age 65 may continue
   his/her term life insurance, and his/her accidental death and dismemberment
   insurance until age 65. At age 65 a teacher who had retained Option A1 coverage in
   retirement is eligible to have term life coverage ($10,000) at a low premium, for the
   remainder of retirement. As well, up to $100,000. of accidental death and
   dismemberment insurance can be retained until age 75. Further details are available
   from Johnson Incorporated, 111 Kent Street, Charlottetown, C1A 4B6 (1-800-371-
   9516).

    A teacher who retires and who has Hospital and Health Insurance (Option B1)
   coverage with the P.E.I.T.F. Plan may continue this insurance in retirement. The
   teacher will have to pay the full premium because Government does not cost-share
   for retired teachers.  For further details contact Johnson Incorporated, 111 Kent
   Street, Charlottetown, C1A 4B6 (1-800-371-9516).

    Note: The Dental Plan is not available to retired teachers.

7. The Retired Teacher and Substitute Teaching

    Teachers who are receiving a service pension may substitute for any number of
   days in a school year. If a retired teacher signs a contract to substitute for a teacher
   who is on a long-term leave then the retired teacher's pension will be stopped for the
   period of the contract and will be resumed when the contract is terminated.
   Substitute teaching on a day-to-day basis will have no effect on your pension.

   Teachers who are receiving a disability pension are not eligible for substitute
   teaching.  Any disabled teacher who is receiving a disability pension and who
   substitutes will have his/her disability pension placed in jeopardy.

8. Retired Teachers' Association

    The P.E.I. Retired Teachers' Association has been organized for the social and
    economic benefit of retired teachers. This organization provides retired teachers
    with a vehicle for expressing their concerns to other institutions and organization.
    Contact the P.E.I.T.F. office for further information on this Association.