What should I know if I’m thinking of retirement?

Retirement options

As a Member of UGFA, you can select one of four retirement options:

Normal Retirement

Normal retirement is leaving your job and stopping work either the first month following your 65th birthday or the month following the end of that semester.

Phased Retirement

Phased retirement is working for a period at a Reduced Workload, and then retiring.

You are eligible for phased retirement if you are between the ages of 55 and 67 at the beginning of the period of Reduced Workload and have completed 10 or more years of pensionable service to the University at the time you apply.

The “phase-out” period is a maximum of two years. The maximum workload in any year is 50% of a full-time Appointment, and the minimum workload is 25%. For a two-year phase-out period, the total workload (year 1 workload plus year 2 workload) may not exceed 75% of a full-time Appointment. During the phase-out period, your salary will be pro-rated based on the percentage workload. It is expected that you will perform a range of duties as outline in your DOE, agreed to prior to the approval of phased retirement.

At the end of the phase-out period, you will receive a retiring allowance equal to 75% of your nominal salary at retirement.

For example, let’s say your salary is $200,000 and you want a two-year phase-out period. In the first year, you work 50% of a full-time workload, so you will earn $100,000. In the second year, you work 25% of a full-time workload and earn $50,000. At the end of the second year, you will receive a $150,000 retiring allowance.

Normally available benefits, including pension contributions, will be provided based on your nominal (100% workload) salary, except for Long Term Disability. Your cost-sharing contributions, where applicable, will be based on your actual salary using normal cost-sharing rates. The University will fund the difference in contributions.

Early Retirement

Early retirement is leaving your job and stopping work before you turn 65, subject to the provisions of your pension plan(s).

Postponed Retirement

December 1st of the year in which you reach age 71. At this point, you can continue working, but pension contributions stop. Long Term Disability benefits and Life Insurance end when you retire or at the end of the month of your 65th birthday, whichever is earliest.

Pension

If you were working for the University before July 1, 2021, and participated in the U of G Professional Pension Plan, your pension will be based on

  • Service earned under the U of G Professional Pension Plan prior to July 1, 2021, plus
  • Service earned under the University Pension Plan (UPP) on or after July 1, 2021.

Your early unreduced retirement date (EURD) appears on your annual UPP statement in the “Your profile” box. Look for the dates that correspond to these headings:

  • UPP Early unreduced retirement date (EURD)
  • Pre-conversion EURD
    This is applicable only if you earned service at the University prior to July 1, 2021.

For more information on the annual UPP statement, see Your annual statement.

Retiring before an EURD will reduce the corresponding pension amount. If you use the UPP’s pension estimator, you can see the impact on your pension. The estimator is accessible from the myUPP member portal.

For more information on the benefits of

Post-retirement benefits

You are eligible for post-retirement benefits if you have at least 10 years of pensionable service with the University. Note that Long Term Disability benefits and Life Insurance end when you retire or at the end of the month of your 65th birthday, whichever is earliest.

If you retire before you are 65, you can convert your Life Insurance Coverage to an individual policy with Sun Life, without the need to provide evidence of good health. You must convert the coverage within 31 days following your retirement date. For more information on converting your Life Insurance coverage, see the section on Can I continue my coverage after I leave the University, or if my employment status changes of the UGFA Unit 1 Group Benefits booklet.

How you initiate retirement

Depending on the retirement option you want, you either give notification or make a request.

In all cases,

  • Once your retirement date has been set, it is irrevocable.
  • Any vacation must be taken prior to your retirement date.
  • Your pension starts on the first day of the month following your retirement. To avoid a gap in your income, choose a retirement date at the end of the month

Notifying of upcoming normal or postponed retirement

To notify the University of your intent to retire, follow these steps:

  1. Notify your Chair in writing about your planned retirement at least 3 months prior. Specify the last day you plan to work.
  2. Notify Human Resources at least 3 months prior to retirement.
  3. Apply for Government Benefits well in advance.

Requesting early or phased retirement

To request early or phased retirement, follow these steps:

  1. Talk to your Chair about your plan to retire.
  2. With the support of your Chair, get signed approval from the Dean or University Librarian.
  3. Receive final approval from the Provost.
  4. Notify Human Resources.
  5. Apply for Government Benefits well in advance.

References

If you have any questions, please contact us at facassoc@uoguelph.ca.