27. (1) The amount of a person’s normal retirement pension is determined in accordance with this section.  O. Reg. 455/97, s. 27 (1). (2) A normal retirement pension is payable in equal monthly instalments for the remainder of the life of the person entitled to receive it.  O. Reg. 455/97, s. 27 (2). (3) The amount of a person’s annual pension is calculated using the formula, (A + B) - C in which, “A”  equals 2 per cent of the person’s average annual earnings during the average of the 36 consecutive highest paid months in his or her last 120 months of pensionable service under the pension plan, multiplied by the number of full years and any fraction of a year of pensionable service to December 31, 1965, “B”  equals 2 per cent of the person’s average annual earnings during the average of the 60 consecutive highest paid months in his or her last 120 months of pensionable service under the pension plan, multiplied by the number of full years and any fraction of a year of pensionable service as computed from January 1, 1966 or such later date on which the person became a member of the pension plan to the date the person terminated his or her membership, and “C”  equals 0.5 per cent of the average of the annual earnings during the 60 consecutive highest paid months in the person’s last 120 months of pensionable service, multiplied by the number of full years and any fraction of a year in pensionable service under the pension plan from January 1, 1966 to be calculated on the basis of the lesser of the person’s earnings and the Year’s Maximum Pensionable Earnings in each year in the averaging period. O. Reg. 455/97, s. 27 (3); O. Reg. 563/99, s. 5 (1); O. Reg. 371/04, s. 5 (1). (4) When calculating the amount of an annual pension under subsection (3), “C” in the formula does not apply to any period during which the member’s contributions were increased under subsection 11 (4) or 11.1 (5) or (6).  O. Reg. 455/97, s. 27 (4); O. Reg. 563/99, s. 5 (2); O. Reg. 398/02, s. 9. (5) Despite subsection (3), if the commuted value of the portion of the person’s pension with respect to his or her pensionable service before January 1, 1987 is less than the sum of his or her contributions made before that date, with interest up to the date of retirement, the person’s pension is increased to the extent necessary to render the commuted value of that portion of the pension equal to the sum of those contributions with interest.  O. Reg. 455/97, s. 27 (5). (6) Despite subsection (3), the person’s initial pension at retirement is reduced, if necessary, so that it does not exceed the lesser of, (a)  2 per cent of the person’s indexed final average salary as determined under subsection (7) multiplied by the person’s years of pensionable service; or (b)  the amount of the defined benefit limit established for the year under the Income Tax Regulations (Canada), multiplied by the person’s years of pensionable service.  O. Reg. 371/04, s. 5 (2). (6.1) For the purposes of subsection (6), service before January 1, 1991 in excess of 35 years is not included in the person’s years of pensionable service.  O. Reg. 371/04, s. 5 (2). (7) The person’s indexed final average salary is the average of the person’s salary, while he or she was a member of the pension plan, for the three highest non-overlapping periods of 12 consecutive months, multiplied, for each period, by the ratio “A/B” in which, “A”  equals the average industrial wage for the year in which the person retires, and “B”  equals, (a)  the average industrial wage for the calendar year in which most of the person’s earnings for the 12-month period were earned, if that year is 1987 or later, or (b)  the average industrial wage for 1986, otherwise.  O. Reg. 455/97, s. 27 (7). (8) Revoked:  O. Reg. 371/04, s. 5 (3). (9) The average industrial wage for a year is as published by Statistics Canada.  O. Reg. 455/97, s. 27 (9). (10) If a person has accumulated less than 60 months of pensionable service under the plan, the total number of months are used to determine the person’s average annual earnings.  O. Reg. 455/97, s. 27 (10). Entitlement to an Early Retirement Pension