Early Retirement Pensions
17. (1) In this section, “eligible service” means the service of a member with an employer eligible to participate in the System that is not credited service. R.R.O. 1990, Reg. 890, s. 17 (1). (2) If a member ceases to be an employee or councillor of an employer participating in the System within the ten year period before the member’s normal retirement age for reasons other than his or her death, the member may elect, in lieu of a deferred pension under section 16, to receive an early retirement pension. R.R.O. 1990, Reg. 890, s. 17 (2). (3) If a member is accruing credited service under subsection 14 (3), the member may, within the ten year period before his or her normal retirement age, elect, in lieu of continued accrual of the credited service, to receive an early retirement pension. R.R.O. 1990, Reg. 890, s. 17 (3). (4) An early retirement pension under this section is payable to the member for life commencing, in the case of an election under subsection (3), on the first day of the month following the month in which the election is received in the offices of the Board and, in the case of an election under subsection (2), on the first day of the month following the month in which, (a) the member ceases to be an employee or councillor if written notice of the election is received in the offices of the Board within six months after the day he or she ceases to be an employee or councillor; or (b) the election is received in the offices of the Board if written notice of the election is not received within six months after the day he or she ceases to be an employee or councillor. R.R.O. 1990, Reg. 890, s. 17 (4). (5) The annual amount of early retirement pension payable to a member under this section is the annual amount of pension calculated in the manner prescribed in section 13 if, at the date of early retirement, (a) the sum of the member’s age, counted in full years and months, plus credited service and eligible service, counted in full years and months, equals, (i) in the case of a member whose normal retirement age is sixty-five years, at least ninety years, or (ii) in the case of a member whose normal retirement age is 60 years, at least 85 years; or (b) the sum of the member’s credited service and eligible service counted in full years and months equals at least thirty years. O. Reg. 775/91, s. 15; O. Reg. 591/98, s. 10 (1). (5.1) Despite subsection (5) and subject to the Income Tax Act (Canada), in the following circumstances the annual amount of early retirement pension payable to a member under this section is the annual amount of pension calculated under section 13: 1. The member retires on or after November 30, 1997 and before January 1, 1999 and the criteria described either in subsection (5.2) or in subsection (5.4) are met at the date of the early retirement. 2. The member retires on or after January 1, 1999 and before January 1, 2002 and the criteria described either in subsection (5.3) or in subsection (5.4) are met at the date of the early retirement. 3. The member retires on or after January 1, 2002 and before January 1, 2003 and the criteria described either in subsection (5.3.1) or in subsection (5.4) are met at the date of the early retirement. 4. The member retires on or after January 1, 2003 and before January 1, 2004 and the criteria described in subsection (5.3.2) or (5.4) are met at the date of early retirement. 5. The member retires on or after January 1, 2004 and before January 1, 2005 and the criteria described in subsection (5.2) or (5.4) are met at the date of early retirement. O. Reg. 317/99, s. 8 (1); O. Reg. 484/01, s. 1 (1, 2). (5.2) For the purposes of paragraphs 1 and 5 of subsection (5.1), the sum of the member’s age (counted in full years and months) plus credited service and eligible service (counted in full years and months) must not be less than, (a) 85 years, in the case of a member whose normal retirement age is 65 years; or (b) 80 years, in the case of a member whose normal retirement age is 60 years. O. Reg. 317/99, s. 8 (1); O. Reg. 484/01, s. 1 (3). (5.3) For the purposes of paragraph 2 of subsection (5.1), the sum of the member’s age (counted in full years and months) plus credited service and eligible service (counted in full years and months) must not be less than, (a) 80 years, in the case of a member whose normal retirement age is 65 years; or (b) 75 years, in the case of a member whose normal retirement age is 60 years. O. Reg. 317/99, s. 8 (1). (5.3.1) For the purpose of paragraph 3 of subsection (5.1), the sum of the member’s age (counted in full years and months) plus credited service and eligible service (counted in full years and months) must not be less than, (a) 82 years, in the case of a member whose normal retirement age is 65 years; or (b) 77 years, in the case of a member whose normal retirement age is 60 years. O. Reg. 484/01, s. 1 (4). (5.3.2) For the purpose of paragraph 4 of subsection (5.1), the sum of the member’s age (counted in full years and months) plus credited service and eligible service (counted in full years and months) must not be less than, (a) 84 years, in the case of a member whose normal retirement age is 65 years; or (b) 79 years, in the case of a member whose normal retirement age is 60 years. O. Reg. 484/01, s. 1 (4). (5.4) For the purposes of paragraphs 1, 2, 3, 4 and 5 of subsection (5.1), the sum of the member’s credited service and eligible service (counted in full years and months) must not be less than 30 years. O. Reg. 317/99, s. 8 (1); O. Reg. 484/01, s. 1 (5). (5.5) Despite subsection (2), the immediate early retirement pension payable under paragraphs 2, 3 and 4 of subsection (5.1) to a member may begin to be paid from the first day of the month following the month in which the member reaches, (a) 50 years of age, in the case of a member whose normal retirement age is 65 years; or (b) 45 years of age, in the case of a member whose normal retirement age is 60 years. O. Reg. 317/99, s. 8 (1); O. Reg. 484/01, s. 1 (6). (6) Revoked: O. Reg. 317/99, s. 8 (1). (7) If at the date of early retirement the member is not eligible to receive an early retirement pension under subsection (5), the annual amount of early retirement pension payable to the member under this section is the annual amount of pension calculated in the manner prescribed in section 13, reduced at the annual rate of 5 per cent, multiplied by the least of, (a) the number of full years and months by which the member’s age is less than the member’s normal retirement age, on the date the early retirement pension is to commence; (b) ninety, in the case of a member whose normal retirement age is sixty-five years, or eighty-five, in the case of a member whose normal retirement age is sixty years, minus the sum of the member’s credited service and eligible service and the member’s age, in full years and months on the date the member’s early retirement pension is to commence; or (c) the number of full years and months by which the sum of the member’s credited service and eligible service is less than thirty years, on the date the member’s early retirement pension is to commence. O. Reg. 775/91, s. 15. (7.1) Despite subsection (7) and subject to the Income Tax Act (Canada), the annual amount of the early retirement pension payable to a member who is not eligible under subsections (5) and (5.1) to receive an early retirement pension at the date of his or her early retirement is determined, (a) under subsection (7.1.1) for a member who retires on or after November 30, 1997 and before January 1, 1999; (b) under subsection (7.1.2) for a member who retires on or after January 1, 1999 and before January 1, 2002; (c) under subsection (7.1.3) for a member who retires on or after January 1, 2002 and before January 1, 2003; (d) under subsection (7.1.4) for a member who retires on or after January 1, 2003 and before January 1, 2004; and (e) under subsection (7.1.5) for a member who retires on or after January 1, 2004 and before January 1, 2005. O. Reg. 317/99, s. 8 (2); O. Reg. 484/01, s. 1 (7-9). (7.1.1) For the purposes of clause (7.1) (a), the amount of the member’s early retirement pension is calculated by reducing the annual amount of pension calculated under section 13 for the member at the rate of 2 1/2 per cent multiplied by the least of, (a) the number of full years and months by which the member’s age is less than the member’s normal retirement age, on the date the early retirement pension is to begin; (b) in the case of a member whose normal retirement age is 65 years, 85 minus the sum of the member’s credited service, eligible service and age (counted in full years and months) on the date the early retirement pension is to begin; (c) in the case of a member whose normal retirement age is 60 years, 80 minus the sum of the member’s credit service, eligible service and age (counted in full years and months) on the date the early retirement pension is to begin; and (d) the number of full years and months by which the sum of the member’s credited service and eligible service is less than 30 years on the date the early retirement pension is to begin. O. Reg. 317/99, s. 8 (2); O. Reg. 484/01, s. 1 (10). (7.1.2) For the purposes of clause (7.1) (b), the amount of the member’s early retirement pension is calculated by reducing the annual amount of pension calculated under section 13 for the member at the rate of 2 1/2 per cent multiplied by the least of, (a) the number of full years and months by which the member’s age is less than the member’s normal retirement age, on the date the early retirement pension is to begin; (b) in the case of a member whose normal retirement age is 65 years, 80 minus the sum of the member’s credited service, eligible service and age (counted in full years and months) on the date the early retirement pension is to begin; (c) in the case of a member whose normal retirement age is 60 years, 75 minus the sum of the member’s credit service, eligible service and age (counted in full years and months) on the date the early retirement pension is to begin; and (d) the number of full years and months by which the sum of the member’s credited service and eligible service is less than 30 years on the date the early retirement pension is to begin. O. Reg. 317/99, s. 8 (2). (7.1.3) For the purpose of clause (7.1) (c), the amount of the member’s early retirement pension is calculated by reducing the annual amount of pension calculated under section 13 for the member at the rate of 2.5 per cent multiplied by the least of, (a) the number of full years and months by which the member’s age is less than the member’s normal retirement age, on the date the early retirement pension is to begin; (b) in the case of a member whose normal retirement age is 65 years, 82 minus the sum of the member’s credited service, eligible service and age (counted in full years and months) on the date the early retirement pension is to begin; (c) in the case of a member whose normal retirement age is 60 years, 77 minus the sum of the member’s credited service, eligible service and age (counted in full years and months) on the date the early retirement pension is to begin; and (d) the number of full years and months by which the sum of the member’s credited service and eligible service is less than 30 years on the date the early retirement pension is to begin. O. Reg. 484/01, s. 1 (11). (7.1.4) For the purpose of clause (7.1) (d), the amount of the member’s early retirement pension is calculated by reducing the annual amount of pension calculated under section 13 for the member at the rate of 2.5 per cent multiplied by the least of, (a) the number of full years and months by which the member’s age is less than the member’s normal retirement age, on the date the early retirement pension is to begin; (b) in the case of a member whose normal retirement age is 65 years, 84 minus the sum of the member’s credited service, eligible service and age (counted in full years and months) on the date the early retirement pension is to begin; (c) in the case of a member whose normal retirement age is 60 years, 79 minus the sum of the member’s credited service, eligible service and age (counted in full years and months) on the date the early retirement pension is to begin; and (d) the number of full years and months by which the sum of the member’s credited service and eligible service is less than 30 years on the date the early retirement pension is to begin. O. Reg. 484/01, s. 1 (11). (7.1.5) For the purpose of clause (7.1) (e), the amount of the member’s early retirement pension is calculated by reducing the annual amount of pension calculated under section 13 for the member at the rate of 5 per cent multiplied by the least of, (a) the number of full years and months by which the member’s age is less than the member’s normal retirement age, on the date the early retirement pension is to begin; (b) in the case of a member whose normal retirement age is 65 years, 85 minus the sum of the member’s credited service, eligible service and age (counted in full years and months) on the date the early retirement pension is to begin; (c) in the case of a member whose normal retirement age is 60 years, 80 minus the sum of the member’s credited service, eligible service and age (counted in full years and months) on the date the early retirement pension is to begin; and (d) the number of full years and months by which the sum of the member’s credited service and eligible service is less than 30 years on the date the early retirement pension is to begin. O. Reg. 484/01, s. 1 (11). (7.2) If a member’s pension is calculated in accordance with subsection (7) or (7.1) and the member becomes entitled to a CPP pension, the annual amount of pension payable to the member after the member becomes entitled to a CPP pension shall be determined in accordance with the following: 1. The annual amount of early retirement pension that was payable immediately before the member becomes entitled to a CPP pension shall be calculated in accordance with subsection (7) or (7.1), as applicable. 2. The bridge pension under subsection 13 (6.1), (6.2) or (7) that was payable immediately before the member becomes entitled to a CPP pension shall be determined without any reduction under subsection (7) or (7.1). 3. The annual amount of pension payable to the member after the member becomes entitled to a CPP pension is the annual amount of early retirement pension determined under paragraph 1 minus the bridge pension determined under paragraph 2. O. Reg. 357/98, s. 1; O. Reg. 464/00, s. 1. (7.3) In subsection (7.2), “entitled to a CPP pension” means entitled to a pension under the Canada Pension Plan that is unreduced for early retirement. O. Reg. 357/98, s. 1. (8) For the purposes of this section, a member’s age shall be calculated as at the last day of the month immediately preceding the commencement date of the member’s early retirement pension. R.R.O. 1990, Reg. 890, s. 17 (8); O. Reg. 317/99, s. 8 (3). (9) The following rules apply when a member becomes entitled to receive a deferred pension under section 16 and wishes to make an election to receive an early retirement pension: 1. The member may make the election within the 10 year period before his or her normal retirement date with respect to an early retirement pension calculated under subsection (5) or subsection (7). 2. The member may make the election within the 10 year period before his or her normal retirement date with respect to an early retirement pension calculated under paragraph 1 or 5 of subsection (5.1) or clause (7.1) (a) or (e). 3. The member may make the election within the 15 year period before his or her normal retirement date with respect to an early retirement pension calculated under paragraph 2, 3 or 4 of subsection (5.1) or clause (7.1) (b), (c) or (d). O. Reg. 317/99, s. 8 (4); O. Reg. 484/01, s. 1 (12, 13). (10) For the purposes of determining completed years and months of credited service and eligible service under this section, (a) a month shall not be counted more than once; and (b) a member employed on other than a continuous full-time basis shall be considered to have been employed on a continuous full-time basis. O. Reg. 317/99, s. 8 (4). Downsizing Benefits