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Inside UNBYour Retirement Options and Pension Payments
Normal retirement
Your normal retirement date is the 30th of June following your 65th birthday. At this time, you will receive an annual UNB pension equal to the sum of Part A and Part B (below). Any government pension you have earned, including any pension payable from the Canada Pension Plan or Old Age Security is paid in addition to your UNB pension.
Part A for service from January 1, 1993 - June 30, 2007 and after July 1, 2013:
1.3% x average YMPE x years of service
-plus-
2.0% x best average salary above average YMPE x years of service
Part B for service from July 1, 2007 - June 30, 2013:
1.0% x average YMPE x years of service
-plus-
1.7 % x best average salary above average YMPE x years of service
If you have service before 1993, your pension for this period will be based on Part A of the formula, with all or a portion of the resulting pension being paid from the New Brunswick Public Service Superannuation Plan. Please see your annual pension statement for details or contact Human Resources.
| Example: Normal Retirement (age 65) | |
| Age at Retirement | 65 |
| Best Average Salary | $90,000 |
| Years of service – Part A | 34 |
| Years of service – Part B | 1 |
| Average YMPE | $48,533 |
|
Annual UNB pension |
$21,452 |
| Part B 1.0% x $48,533 x 1 plus 1.7% x $41,467 x 1 |
$485 $705 |
| Total UNB pension |
$50,839 |
Special early retirement
There are three types of special early retirement.
If your age plus service totalled 85 on or before July 1, 2003, but you are not yet age 65
Your annual pension from retirement to age 65 is calculated as follows:
2.0% x best average salary x years of service from January 1, 1993 - June 30, 2007 and after July 1, 2013
-plus-
1.7 % x best average salary x years of service from July 1, 2007 - June 30, 2013
When you reach age 65, your pension is recalculated the same way as a normal retirement pension.
If your age plus service already totals 85 or more, but you are not yet age 60
Your annual pension from retirement to age 60 is calculated as follows:
.0% x best average salary x years of service from January 1, 1993 - June 30, 2007 and after July 1, 2013
-plus-
1.7 % x best average salary x years of service from July 1, 2007 - June 30, 2013
When you reach age 60, your pension is recalculated the same way as a normal retirement pension.
If your age plus service already totals 85 or more and you are between ages 60-65
Your pension is calculated the same way as a normal retirement pension.
Reduced early retirement
If you have at least two years of plan membership (or five years of service), you may retire on a reduced pension anytime in the 10 years before your normal retirement date. If you do this, your UNB pension will be calculated the same way as a normal retirement pension and will then be reduced by 5% for each year that you are under age 65. This reduction reflects the fact that your pension is expected to be paid for a longer period.
Maximum UNB pension
The Income Tax Act imposes a dollar limit on the amount of pension you can receive from the UNB plan. The current limit is $2,646.67 x years of service under the UNB plan.
Cost-of-living increases
Your pension is increased on the first of each year to help offset inflation. The increase equals the increase in the Consumer Price Index to a maximum of 6% for benefits earned up to July 1, 2003 and a maximum of 4.5% for benefits earned from July 1, 2003 to June 30, 2004.
For benefits earned from July 1, 2004, the increase equals:
a. the increase in the Consumer Price Index to a maximum of 0.5% plus
the lesser of
b. the amount the 3-year average investment return exceeds 7.75%, or
the amount the 3-year average increase in the Consumer Price Index exceeds (a).
Payment of your pension
Pension payments begin in the month following your retirement date and continue monthly for the rest of your life. You may have your pension cheques mailed to you or deposited directly to your account.
Under the UNB plan, when you die, 60% of your pension will continue to your spouse. This pension will be paid for the lifetime of your spouse and is not affected by remarriage. It will increase each year in line with any cost-of-living increases. Note: the person who was your spouse when your pension began has first claim. If this spouse has died or you had no spouse when your pension began, the person who was your spouse at the time of your death will receive the pension. An opposite-sex spouse as defined under provincial pension law or any other named beneficiary will take precedence over a same-sex spouse.
If you die within one year of your marriage, and your life expectancy at the time of marriage was under one year, no surviving spouse's pension will be paid.
If you leave no surviving spouse, your dependent children under age 18 will share the survivor's pension up to age 18. The Pension Board may also grant a survivor's pension to a disabled child over age 18, or to another member of your family who was dependent on you at the time of your death.
If you leave no dependents, and your contributions plus interest exceed the pension that has already been paid out to you, the difference will be refunded to your named beneficiary or estate.
