How Lost Service and Salary Will Affect Your Pension

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This information is provided to assist members about 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. 

Lock-out: A work stoppage due to a lock-out can be purchased as an employer-approved leave. 

Any employer-approved leave can be purchased if you:  

  • were a contributing active member of the plans or on strike immediately before the leave, and 
  • are currently accruing pensionable service as a contributing active member of the plan or as a disabled member. 

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; each day less will impact your pension by about $1 a month. 
  • you will not have the 85 index when you commence your pension; each day less will impact your pension by about 70 cents a month. 

If you are a school administrator and: 

  • you will have the 85 index when you commence your pension; each day less will impact your pension by about $1.15 dollar a month. 
  • you will not have the 85 index when you commence your pension; each day less will impact your pension by about 85 cents a month. 

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.