RETIREMENT: “the decision is entirely yours to make”

Canada Post has mailed a document to postal workers who are at or approaching 60 years of age. After congratulating the recipient for achieving (fill in the blank) years of service the letter goes on to offer some information hoping to entice the reader into retirement.

Some of the information is incomplete and could be misleading:

• For instance, the letter talks about the increase in post retirement healthcare premiums for those who retire after April 1, 2013. What the letter does not mention is that only members with more than 15 years of service are eligible for coverage no matter what the age of retirement.

• The letter also states: “Depending on your years of pensionable service, once you retire, your pension income could replace 60 to 70 percent of your current base salary.” While this is true, it could replace 60 to 70 percent of your current base salary, it could also end up being much less. The size of your pension will depend on your years of service. To get 60% you have to work 30 full time years. (35 years for 70%). If you have worked less than 30 years when you turn 60 you will get less than that. 15 years of pensionable service, for example, would replace only 30% of your current base salary. The less the years of service you’ve paid towards the pension, the smaller the percentage of your current income it will replace. Part time service will also reduce the number of pensionable years used to calculate your pension income.

The letter does contain some good information and references to tools available to help CUPW members find out exactly what their pension contributions entitle them to. If you are thinking about retiring, use the tools and contact information supplied.

In the letter Canada Post claims to “have more employees than we have work to do”. This self inflicted situation should have no bearing on choosing your date of retirement because as the letter also states, that when it comes to choosing your date of retirement “the decision is entirely yours to make”.

THE PENSION WEBSITE
www.cpcpension.com

THE PENSION ADMINISTRATION OFFICE
1-877-480-9220