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Re: Pension formula

Julian just reminded me that I should have clarified that this was for a very specific scenario. Interestingly, the calculus changes depending on the age of your spouse. The closer in age you are to your spouse (or if they are older then you) then your rate also increases (but will probably always be below 2%). But if your spouse is much younger then your rate decreases. You can do your own calculation here: https://www.pensionsbc.ca/portal/page/portal/general_pension_estimator/cpp_general_estimator

Frank

From: Frank Lee [mailto:f.lee@sfu.ca]
Subject: Pension formula
Date: Fri, Nov 16, 2018 1:02 PM PST
To: academic-discussion@sfu.ca <academic-discussion@sfu.ca>

My apologies if this has already been discussed.

The formula that is being presented as the calculation for our pension under the new plan is: 2% X (average best 5 years salary) X (years of service). However, this is "based on a single life pension option with a 10-year guarantee". This is from BCCPP's website (https://college.pensionsbc.ca/how-we-calculate-your-pension). For those members with spouses we are automatically enrolled as joint-life, which means we will immediately be below the 2% rate right from the get-go.

I used a mock scenario using the BCCPP pension calculator and came up with these rates for the different options: