The Healthcare Employees’ Pension Plan is a defined benefit plan. This means your pension is calculated using a formula. The two key components in the formula are your Highest Average Earnings and your total years of Credited Service.
To determine your Highest Average Earnings we use the highest five years of annualized earnings from the last 11 years in the Plan. If you have not completed five years of participation, your actual annualized earnings will be used to determine the average. The formula used to calculate your monthly pension is:
Early Retirement Reduction
If at retirement, you are under age 60 and have not attained Magic 80, an early retirement reduction will be applied to your pension.
Bridging Benefit
If you are entitled to a bridging benefit, it will be quoted on your Pension Estimate. The bridging benefit is paid until age 65, and is designed to offset a portion of the early retirement reduction.
Supplementary Pension Benefit
If you are less than age 65 and qualify for an immediate pension when you retire, you are eligible to receive the supplementary benefit. This benefit is payable only to you as the member, until age 65 or your death, whichever occurs first. Please refer to your Pension Estimate for the estimated amounts of your supplementary pension benefit.