07. Will there be any reduction to my pension because of the VRIP?

If you are retiring under the Money Purchase Provision (MPP) of Carleton’s registered pension plan, your monthly pension payment is determined by the total value of contributions and interest earnings at the date of your retirement. As neither service nor salary are used for this calculation, there is no pension adjustment based on your age at retirement.

If you are retiring under the Minimum Guarantee Provision (MGP) of the pension plan, your earnings and service are used to calculate your pension income at your normal retirement date (July 1^st of the year in which you turn age 65).

• If you retire earlier than your normal retirement date, your monthly income is actuarially adjusted to reflect that you have less service, and that your benefit must cover a longer period of retirement.
• If you have passed your normal retirement date, your pension is actuarially adjusted to reflect the additional period of contributions and a shorter period of retirement.

The pension calculator automatically performs both MPP and MGP calculations and produces the monthly annuity amount that provides the plan member with the best retirement option. Any actuarial adjustments will be performed automatically and will form part of the pension quote so that you can make an informed decision. For more information, please visit the Planning Your Retirement page on the HR website.