Quote:
Originally Posted by Mr.Coffee
Can anyone actually detail what the teachers pension actually is? I had heard it was average of your 5 highest earning years for life after retirement, but I'm not sure that's true and am too lazy to go research if there's a teacher here that can just confirm / deny.
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It depends on a bunch of factors including:
-how long you worked
-what age you retire
-whether you want the amount guaranteed to be paid to a surviving spouse if you die first
I don't know the exact specifics of Alberta's system, but in BC basically it works like this:
1) Every full-time equivalent year you work, you accrue a benefit worth 1.9% of your 5-year average highest salary.
2) If you accrue 35 years of service or work until age 61 (whichever is less), you can retire with an unreduced pension. Every year you retire before that reduces your payout by about 5%.
3) If you want your spouse to receive the payment after you die, you deduct another 10% or so.
So assuming someone wanted their payment guaranteed for their spouse, they'd end up with the following if they started accruing full-time service in their late 20s (which is about average):
Retire at age 55: 32% of their highest 5-year average
Retire at 61: 56% of their highest 5-year average
Retire at 65: 63% of their highest 5-year average