Normal Retirement Age Conversion: 60 to 65

If your normal retirement age changes from 60 to 65:

  • You are immediately entitled to benefits available to normal retirement age 65 members.
  • You begin to pay normal retirement age 65 rates – the rates are lower than normal retirement age 60 rates.
  • Your excess member contributions are refunded with interest paid at the CANSIM rate. Excess member contributions are past contributions made when your normal retirement age was 60 minus the amount you would have otherwise contributed with a normal retirement age of 65.

Examples

Jane is 52 years old, has 30 years of credited service, has a normal retirement age of 60 and could retire this year.

If Jane’s normal retirement age changes to age 65:

  • The earliest age she could retire would now be age 55.
  • Her employer would immediately start to deduct contributions at the lower normal retirement age 65 rate.
  • For her past 30 years of credited service, excess member contributions made at the normal retirement age 60 rate, plus interest, would be refunded.
  • When she retires, her pension amount would be based on years of credited service at retirement (up to a maximum of 35 years). For example, if she retires at age 55 with 33 years of credited service, 33 years of credited service would be used to calculate her pension.

Tom is 48 years old, has 21 years of credited service and a normal retirement age 60. He plans to retire at age 57 when he will have 30 years of service and a normal retirement age of 60.

If Tom’s normal retirement age changes to 65:

  • His employer would immediately start to deduct contributions at the lower normal retirement age 65 rate.
  • For his past 21 years of credited service, excess member contributions made at the normal retirement age 60 rate, plus interest, would be refunded.
  • He can still retire at age 57 with an unreduced pension – because the minimum early retirement age requirement of 55 is met and he will have 30 years of service.
  • His pension amount would be based on years of credited service at retirement (up to a maximum of 35 years). In this case, this is 30 years of credited service if he retires at age 57.