Sign In

Working as a Retiree

Contract Employment After Pensi​on Starts

Returning to work under contract for an ATRF employer in a position that requires a teaching certificate may affect your monthly pension. If you work more than 0.6 of a year within a school year (September to August), your pension is reduced dollar-for-dollar by the amount of salary relating to service accrued once the limit of 0.6 of a year is reached. The pension payable for any subsequent month in that school year is similarly reduced. This is called the “0.6 rule.”

As of September 1, 2011, the 0.6 rule excludes substitute service, so this type of service will no longer cause a reduction to a pension payable by ATRF.

ATRF relies on employers to report your service and salary; so we recommend you keep track of your accrued service so you are able to make an informed decision. Your employer can help you determine how much service you are accruing, including payouts on contracts. Be sure to inform your employer that you are receiving an ATRF pension, so that pension contributions are not deducted.​

If you are employed at a year-round school, be sure to contact your employer to determine how your service will be reported to ATRF.

Prior to September 1, 2011, a different rule applied in this situation.

​Refer to Calculation of Teaching Service, below, to determine if you have reached 0.6 service for the year.

​Calculation of Teaching Ser​vice

Each month, your employer reports your contractual service to ATRF.​

Contractual service is based on the salary paid (not days worked) using the following formula:

​Pensionable Sa​lary Paid (PSP)​= ​​​​​​​Service​
​Monthly Rate of Salary (MRS)
x 12 OR Annual Grid Salary

 

Full-Ti​​me

For this example, assume that you have signed a 1.0 contract beginning in Sep​​​tember that will continue for the full school year. Your monthly pensionable salary paid is $5,876.67 and your monthly rate of salary is $5,876.67.​​

5,876.67​​= ​​​​​​​0.083333 service​ ​
5,876.67 x 12

 

Your service for the year is shown in the table below.​

In this scenario, the 0.6 limit is reached in April.

 

Month​Service
Accumulated Service​
September0.0833330.083333
October0.0833330.166666
November0.0833330.249999
December0.0833330.333332
January0.0833330.416665
February0.0833330.499998
March0.0833330.583331
April 0.083333 0.666664
May0.0833330.749997
June0.0833330.833330
July0.0833330.916663
August0.0833330.999996

Part-Time Co​ntract

For this example, assume that you have signed a 0.7 contract beginning in September that will continue for the full school year. Your monthly pensionable salary paid is $4,113.67 and your monthly rate of salary is still $5,876.67.

4,113.67​= ​​​​​​​0.058333 ​service​ ​
​5,876.67 x 12

 

​Your service for the year is shown in the table below.

MonthServiceAccumulated Service
September0.0583330.058333
October0.0583330.116666
November0.0583330.174999
December0.0583330.233332
January0.0583330.291665
February0.058333​0.349998
March0.0583330.408331
​April0.0583330.466664
May0.0583330.524997
June0.0583330.583330
July* 0.058333 0.641663
August*0.0583330.699996​

​In this scenario, the 0.6 limit is reached in J​uly. 

* This represents your payout on your contract. For more information, refer to Returning to Work as a Teacher​, under “Why do I have service in July and/or August?”.

NOTE: If you are employed at a year-round school, be sure to contact your employer to determine how your service will be reported to ATRF.

© Copyright 2015, Alberta Teachers' Retirement Fund Board
Legal Information