Highlights from presentation:
- TRAF pension is a "Defined Benefit Plan" - your pension is determined by a formula based on salary and years of service; it is not determined by your contributions.
- In addition to the mandatory contributions by employee and employer, you can choose to make voluntary contributions. These would accumulate with interest at the fund rate of return. Voluntary contributions can be converted to a monthly annuity at retirement, paid as a lump sum before retirement, or used to purchase eligible service.
- "Qualifying Service" - this determines WHEN you are eligible to receive your pension. You earn qualifying service for each year in which you have worked at least 1 day.
- Your age + Qualifying Service must equal 80 to receive pension without Early Retirement Penalty. In other words, at age 55, if you have 25 years of service, you can receive a full pension (no penalty). If you only have 24 years of service, you would have to wait until age 56 to receive your full pension.
- "Pensionable Service" - this determines the AMOUNT you will receive for your pension. This is the sum of your working time. If you work full time for your entire service, your Pensionable Service will match your Qualifying Service. If you work half-time for your entire service, your Pensionable Service will be HALF of your Qualifying Service.
- Ways to increase your pension:
- Increase your Pensionable Service (work longer).
- "Buy back" leave time (maternity leave, parental leave, educational leave, etc.) - this is a really good deal, allowing you to increase your Pensionable Service so that it matches your Qualifying Service. Forms available online at TRAF.
- Transfer pension from out-of-province teacher plans and certain other plans. Forms available online at TRAF.
- Increase your salary (increase salary class, increase pay scale through negotiations).
- Your pension is affected by Life Events:
- Relationship breakups can affect your pension both before and after you retire.
- Death benefits will be paid to your married or common-law partner.
- After retirement, death benefits are based on the Plan Option selected at retirement.
- Your pension is also affected by: moving to another pension plan, taking a leave of absence, leaving teaching, or becoming disabled.
- To prepare for your retirement:
- Obtain a pension estimate (pension estimator available on TRAF website).
- Attend Retirement Seminar (you will receive an invitation once you reach age 48).
- Meet with TRAF Member Service Specialist (appointments are available on Saturdays and during Christmas and Summer breaks).
- Choose Plan Option and decide on Integration (see TRAF website for details).
- Apply for pension (don't forget that it is YOUR responsibility to do this!).
If you have questions about your pension or any of the above information, contact TRAF or visit their website at www.traf.mb.ca.