Nova Scotia Pension Agency > Frequently Asked Questions

Frequently Asked Questions For New Members

1. Do I have to enroll in the pension plan?

No, your enrollment is automatic. Teachers who are employed in the public school system and/or community college system in Nova Scotia are required, as a condition of employment, to be members of the Teachers' Pension Plan and to make contributions. There is no need to fill out an application form, but you may want to check your first pay advice or confirm with your school board that your pension contributions are being made.

2. Who administers the pension plan?

The Nova Scotia Pension Agency administers the pension plan. You can reach a Client Services Consultant between the hours of 8am and 4:30pm Monday through Friday. After hours you may leave a voicemail message or email us at PensionsInfo@gov.ns.ca .

3. How much do I contribute to the pension plan?

There are two rates of contribution: the lower rate, 8.3%, is payable on earnings up to and including the Year's Maximum Pensionable Earnings (YMPE), and the higher rate, 9.9%, is payable on earnings in excess of the YMPE. The YMPE is a figure established by the Canada Pension Plan effective January 1 of each year. Pension contributions cease to be deducted at the earlier of 35 years of pensionable service or age 71. The following is an example of the calculation.

Example # 1 (salary greater than YMPE) - The YMPE for 2010 is $47,200. If you earn $50,000 in 2010, your contributions to the Teachers' Pension Plan would be $4,194.80, and calculated as follows:

8.3% X $47,200 = $3,917.60
9.9% X ($50,000 - $47,200) = $277.20
Total Annual Contributions = $4,194.80

Example # 2 (salary less than YMPE) - If you earn $35,000 in 2010, your salary would be less than the YMPE of $47,200. Therefore, your annual contributions would be $2,905.00, calculated as follows:

8.3% X $35,000 = $2,905.00

4. When will I be eligible to draw a pension?

You are eligible for a retirement pension if you have stopped working as a teacher and if you meet one of the age and service requirements listed below. There is no age requirement when 35 years of service or greater is reached.

Age 50 and 30 years of service (this is a reduced pension);
Age 55 and age plus years of service equals at least 85;
Age 60 and at least 10 years of service;
Age 65 and at least 2 years of service.

If you qualify for a reduced pension at age 55, there are three separate rules:
Age 55 and at least 2 years of service but less than 10 ;
Age 55 and at least 10 years of service but less than 20;
Age 55 and at least 20 years of service.
If you are under age 65 when you retire, the pension you receive will include your lifetime pension plus a bridge pension. This bridge pension will cease when you reach age 65.

5. How is my pension calculated?

The following is an example of how a pension is calculated and what happens at age 65. For this example, John is retiring at age 58 with 32 years of pensionable service. His highest average salary (HAS) is $55,000. HAS is calculated by averaging the 5 highest yearly salaries of your career.

2.0% X	Highest AverageSalary (HAS)	X	Pensionable Service
	$55,000		32.000 years
John's annual pension at age 58:					$35,200
LESS at age 65:
.7% X	Average YMPE	X	Pensionable Service
	$40,000		32.000 years	=	- $8,960
John's annual pension at age 65:					$26,240

Please see question # 6 for information on Canada Pension Plan integration.

6. What happens to my penson benefit at age 65?

Depending upon whether you decide to draw your Canada Pension Plan (CPP) benefit at age 60 or 65, you may experience a decrease in the overall monthly income you receive. There are many details around this topic but the following is a brief summary of the two scenarios which can occur:

Scenario # 1
If you elect to start receiving CPP benefits prior to age 65, this is what you should receive each month:
The lifetime portion of your teacher's pension
Plus
The bridge benefit of your teacher's pension (until age 65)
Plus
A reduced CPP benefit from the Canada Pension Plan

Scenario # 2
If you elect to start receiving the CPP benefit at age 65, this is what you should receive each month upon reaching age 65:
The lifetime portion of your teacher's pension
Plus
The full CPP benefit from the Canada Pension Plan

Again this is only a summary. If you would like more information on what will happen to your total overall income (Teachers' Pension Plan benfit plus Canada Pension Plan benefit) at age 65, please contact us.

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