When you start to receive your NHRIPP pension is up to you. You have a number of choices but must stop working at any job that requires contributions to the Plan to start your pension (unless you are 71 or older). You should contact InBenefits three months the date you want your pension to begin.
You can retire on an unreduced pension on the first of the month after you reach age 65. This is the normal retirement age under the Plan.
You can retire with a reduced pension as early as age 55. Under this option, your pension is calculated the same way as a pension at age 65 but it is permanently reduced by 0.5% per month for each month you start your pension before your 65th birthday. This reduction is required because you will receive more pension payments than you would if you retired at age 65. These early retirement reductions are based on your age when your pension starts, not when you stop working. The closer you are to reaching age 65, the smaller the total early retirement reduction will be. However, as you are retiring early the total contributions used to calculate your pension will be less than they would be if you had worked until age 65.
You can delay the start of your pension past age 65. In this case, contributions from you and your employer will continue as usual and your pension will continue to grow. Under current tax rules, you must start receiving your pension by no later than December 1st of the year in which you turn 71, even if you continue working at a job which requires NHRIPP contributions to be made on your behalf.
The Income Tax Act does not permit you to receive a pension and accrue pension benefits in the same plan at the same time.
If you start your pension and return to work with a contributing employer before age 65: Once you complete the hours of service required by your collective agreement, you must stop collecting your pension and you and your employer must start making contributions to the Plan on your behalf.
If you start your pension and return to work with a contributing employer after your 65th birthday: Some collective agreements require employers to contribute amounts equal to the their employer contributions directly to your personal RRSP instead of to the Plan, if a pensioner returns to work after their 65th birthday. This allows such pensioners to receive the amount their employer would have contributed on their behalf while stile receiving their pensions. However, this option is only available to members whose collective agreement or memorandum of agreement permits it.
Otherwise, if you start you pension and return to work with a contributing employer after age 64, you can either:
1. continue to receive your monthly pension and not re-join the Plan (you will not accrue any additional pension benefits from this employment); or
2. stop your monthly pension when you complete the hours of service required by your collective agreement and you and your new employer start making contributions to the Plan. When you start your pension again, it will be recalculated to include these additional contributions.
Please review your options carefully before deciding. It may not be worth it for you to stop your pension (option 2) and give up hundreds (or even thousands) of dollars of retirement income if you return to work and accrue only a very small amount of additional pension. If you have questions or need more information, please contact InBenefits