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How a work stoppage affects your pension.

Your pension at retirement is determined by a formula that uses your pensionable service and the average of your pensionable salary in the five consecutive years of pensionable service when your pensionable salary was highest. An increase in either will increase your pension at retirement.  

If you have enough service to be eligible for a pension, you can receive an unreduced pension, assuming the sum of your age and pensionable service is at least 85 or you are age 65 (normal retirement). An early retirement reduction factor is applied if your age and pensionable service total less than 85. 

Having less pensionable service due to a work stoppage may impact your future pension as you will not earn 1/200 (.005) of a year of pensionable service and pensionable salary for each day of a work stoppage. 

Purchasing a Work Stoppage

The type of work stoppage will impact your ability to Purchase Service. 

Strike: A work stoppage due to a strike cannot be purchased as pensionable service. 

Lockout: A work stoppage due to a lockout can be purchased as an employer-approved leave, if you meet the eligibility requirements. Please see the Purchasing Service Info Sheet for more information.

If there is both a strike and a lockout at the same time, the underlying cause of the work stoppage is what determines whether the service can be purchased or not. Meaning if the primary reason for the work stoppage is a strike, then the service cannot be purchased, and if the primary reason for the work stoppage is a lockout, then it can be purchased. Hence, if the work stoppage begins with a strike, and a lockout is put in place afterwards while the strike is still effective, then the strike remains the primary reason for the work stoppage, and service during this time cannot be purchased.

The Estimated Difference in Your Pension Due to a Work Stoppage

If you do not have the ability to purchase the work stoppage, or have the ability but choose not to purchase the pensionable service, your ATRF pension will be slightly lower than if there had not been a work stoppage since you will have earned less pensionable service and less pensionable salary. 

If you are a teacher and:  

  • you will have the 85 index when you commence your pension (i.e., your pension is unreduced); each day less will impact your pension by about 64 cents a month. 
  • you will not have the 85 index when you commence your pension (i.e., your pension is unreduced); each day less will impact your pension by about 51 cents a month. 

If you are a school administrator and: 

  • you will have the 85 index when you commence your pension (i.e., your pension is unreduced); each day less will impact your pension by about 95 cents a month. 
  • you will not have the 85 index when you commence your pension (i.e., your pension is unreduced); each day less will impact your pension by about 70 cents a month. 

These estimates (in today’s dollars) are for illustration only, using an average salary of about $95,000 for a teacher and about $120,000 for an administrator, and an average YMPE of about $65,000. The reduced pension scenario assumes a full 20% reduction (i.e., pension starts at age 55).

The above information is of a general nature only. There are many different circumstances that can affect pension decisions. Each teacher’s situation is different. Please contact us if you have any pension questions or need more information.

You can estimate the difference a work stoppage would make to your pension by using the Pension Estimate Calculator by signing in to your MyPension account.