How much will my pension be?

How much you receive depends on four factors:

  1. Years of pensionable service
  2. Age
  3. Average pensionable salary
  4. In some instances, the reason for termination of employment.

The basic superannuation benefit calculation provided under the PSSA is as follows:

2% x number of years of pensionable service x average salary for five consecutive years of highest salary.

Part time pensionable service is calculated as follows:

2 per 100 X Number of years of part-time pensionable service X Average salary for 5 consecutive years of highest paid service based on full-time salary rate X Assigned part-time hours / standard full-time hours.

Examples :

The calculation for a superannuation benefit of an employee, age 55 or older, who retires with 35 years of service and an average salary of $45,000 over the best five years would be :

2 p.100 x 35 x 45 000 $ = 31 500 $ per annum

If the same employee had 25 years of full-time service, along with 10 years of part-time service working 20 hours during a standard 37.5-hour work week, the benefit calculation would be:

2% x 25 x 45 000 $ = 22 500 $ per annum
plus
2% x 10 x 45 000 $ x 20/37,5 = 4 800 $
per annum
Total = 27 300 $ per annum

 

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July 15, 2013
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