Frequently Asked Questions for Pensioners
1. How is my pension calculated?
A monthly pension benefit is based on the following:
- 5% times Indemnity Service (up to 15 years) times 3 year highest average Indemnity;
- 5% times Executive Council Service (up to 15 years) times 3 year highest average Executive Council Salary.
2. When am I eligible for a pension?
There are two components to eligibility: service and age. You must have at least five years of service and have been elected twice. i.e. two general elections or a by-election and a general election.
To be eligible for an unreduced pension, you must be 55 years of age. A reduced pension is payable as early as 45 years of age. The reduction factor is 0.5% for each month from your actual age to age 55. The maximum reduction is 50%.
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3. What happens when I die?
Amendments to the Members' Retiring Allowances Act have changed survivor benefits for new Members that started work on or after April 6, 2010. These changes are noted below.
Member with a spouse and children
If the Member started work prior to April 6, 2010 a surviving spouse would be entitled to receive a lifetime pension with a 66 2/3% of the pension benefit the Member was receiving or would have been entitled to recieve. Surviving children are eligible to recieve 10% of the pension benefit up to 18 years of age (or 25 if in full-time attendance at a post-secondary institution). If there are more than 3 eligible children, 33 1/3% of the Member's pension benefit is divided equally among them.
Note: If the Member started work on or after April 6, 2010 a surviving spouse would receive 60% of the pension benefit the Member was receiving or would have been entitled to receive, payable for life. Surviving children are eligible to recieve 10% of the pension benefit up to 18 years of age (or 25 if in full-time attendance at a post-secondary institution). If there are more than 4 eligible children, 40% of the Member's pension benefit is divided equally among them.
Member with children only or upon death of the surviving spouse
If the Member started work prior to April 6, 2010 a lifetime pension with a 66 2/3% survivor pension (total) is paid to the children upon death of the member or death of the survivor while the children are under age 18 (or under age 25 and in full-time attendance at at post-secondary institution).
Note: If the Member started work on or after April 6, 2010 a lifetime pension with a 60% survivor pension (total) is paid to the children upon death of the member or death of the survivor while the children are under age 18 (or under age 25 and in full-time attendance at at post-secondary institution).
Member without spouse or children
A life annuity with a 50% pension payable upon the member's death if dependants (other than a spouse or children) are surviving.
Death benefits before retirement
Payment of spouse and dependant pension is the same as survivor benefits if the member is vested. A spouse may elect an actuarially reduced pension if the member had served in all or part of two General Assemblies, but less than five yers. Otherwise, a refund of a member's required contributions with interest is payable to the deceased member's beneficiary.
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4. Is my pension increased for cost of living?
For information on Indexing (Cost of Living Adjustment) please see MLA COLA page.
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