The TPP (the Plan) is a Defined Benefit Pension Plan that provides you with a lifetime of monthly payments upon retirement. This will be a valuable financial asset when you are ready to retire.
You are automatically enrolled in the Plan when you become contractually or permanently employed as a teacher. You contribute to the Plan through regular payroll deductions, which are matched by your employer. Contributions to the Plan are mandatory for all teachers who are contract or permanent employees.
The Plan uses a formula to determine how much pension you will receive when you retire. The following components are used to calculate your TPP benefit:
- your average salary at date of termination;
- your total pensionable service at date of termination; and
- the rate at which your pension grows (ie. accrual rate) with each year of service