Actuarial Equivalent Reduction

Reduction based on actuarial assumptions ensuring that your date of retirement does not impact the Plan’s overall financial health. It generally translates into a reduction between 5% and 6.5% per year prior to your Unreduced Pension Age.

Average YMPE

The average of the YMPE in the three (3) preceding years ending with the year of your termination or retirement.

Commuted Value

The present value of your future monthly pension payments payable as a lump sum and considering current interest rates, projected life expectancy and future indexing.

Deferred Members

Members who have left the university prior to retirement age, but have chosen to not take the Commuted Value option and keep their pension in the plan.

Defined Benefit Pension Plan

A type of pension plan that gives plan members a guaranteed lifetime monthly pension.

Contrast this  to a defined contribution pension plan which provides members with a lump sum amount that members have to invest and convert into retirement income.

Early Retirement Reduction

The reduction to your pension applied prior to your Unreduced Pension Age.

Excess Surplus

The amount by which the assets of the Plan exceed the actuarial liabilities of the Plan plus an appropriate contingency margin as determined by an actuarial valuation.

Final Average Earnings

The average of your earnings in the 5 consecutive years that produce the highest earnings.


The continued accrual of years of service for the purpose of determining your Unreduced Pension Age even after your termination or retirement date. For example, a member retiring at age 60 with 26 years of service has 60 + 26 = 86 points. If the member is entitled to an unreduced pension at 90 points, he would be 4 years short of his Unreduced Pension Age without grow-in, but only two years short of his Unreduced Pension Age with grow-in. Without grow-in, he would reach the Unreduced Pension Age at age 64 when he would have 64 + 26 = 90 points. With grow-in, he would reach the Unreduced Pension Age at age 62 when he would have 62 + 28 = 90 points.


Yearly increase in pension or earnings, calculated in accordance with the annual inflation rate or other rate.

Joint and 50% Survivor

Form of pension where 50% of the monthly pension continues to the spouse of the member after his death.

Life Guaranteed 5 Years

Form of pension where the monthly pension stops at the death of the member, but provides for at least 5 years of payment to either the member or his beneficiaries should the member die before 5 years.

Life Only

Form of pension where the monthly pension stops at the death of the member.

Normal Form of Pension

The form of pension used when calculating the monthly pension amount payable at retirement from the Plan.

Pension Accrual Rate

The percentage of your Pensionable Earnings that you are accruing as a pension every year.

Pensionable Earnings

The earnings that are used to calculate your pension accrual, generally your basic annual salary.

Unreduced Pension Age

The age at which you are entitled to your full unreduced pension. Prior to that age, a reduction based on your age is applied.

Yearly Maximum Pensionable Earnings (“YMPE”)

The maximum earnings on which the federal government pays CPP. The University uses that amount to calculate your pension benefits upon retirement under the current Plan rules. In 2018, the YMPE is $55,900.