Changes to Your Pension

Throughout your retirement, different situations may cause changes to occur to your pension. If you are registered for Online Services, any time there is a change, you will receive an email notification from TRAF. The details will be contained in a pension change notice in My TRAF Documents.

Note that once you receive your first pension payment, you cannot change the plan or the integration option you selected at retirement. Below are some of the reasons your pension may change.

Bridging benefit

If an early retirement penalty and bridging benefit were applied to your pension at retirement, the bridging benefit and related cost of living adjustment (COLA) will stop at the earlier of age 65 or death, resulting in a decrease in your pension.

Integration

If, at retirement, you chose to integrate your TRAF pension with the Canada Pension Plan and/or Old Age Security, your TRAF pension will reduce at age 60 and/or 65 respectively.

Cost of living adjustment (COLA)

COLA is granted in July. You may be entitled to receive your first COLA in your 13th pension payment. In order to receive a full COLA, you must have received pension payments for 18 months prior to that COLA being granted. Otherwise, the COLA will be pro-rated based on the number of months you received a pension. There is no guarantee of a COLA.

Withholding tax

 TRAF is required to adjust the amount of income tax withheld, based on changes in the provincial and federal tax credits and if your residency for tax purposes changes.

Extended health insurance premiums and other group insurance premiums

TRAF does not administer these benefits but simply deducts the required monthly premiums on behalf of the related organizations, if applicable.

Death of the member or beneficiary/partner

Depending on the plan option selected at retirement, your pension payment is affected when either the member or the beneficiary/partner passes away.

Employer contract settlements

TRAF contributions will be deducted from this retroactive amount if your employer had a salary settlement covering a period of employment prior to your retirement.

Your pension will be recalculated using the increased salary and will be paid retroactive to the effective date of your pension.

Depending when the information is sent to TRAF, it could take several months or more to adjust your pension amount.

Marriage/common-law breakdown

If you and your partner (married or common-law) have separated, it is important to contact TRAF promptly for information on how your pension is affected.

If the separation is permanent, your former partner may be entitled to up to 50% of the pension value earned from the date the relationship began to the date of separation.

We encourage you to seek legal advice regarding your family law entitlements, and financial advice regarding the implications of a relationship breakdown to your pension.

Further information can be found in “Life Events.”