Pension Benefits Explained

How Long Will They Last?

As a retired LAPP member, your retirement income will be paid to you for as long as you live. Depending on which pension option you choose when you start your LAPP pension, a pension benefit may be payable to your spouse, partner, or chosen beneficiary upon your death.

Pension Payment Dates

Once your pension payments have started, you can expect to receive your direct deposit payment in your bank account on the second-last banking day of each month, except in December when it is paid before December 25. If you're receiving your LAPP pension by cheque, it should arrive by mail by the end of the month, except in December, when it should arrive before December 25. You can update your direct deposit banking information at any time by logging in to Your Pension Profile on this website, using the login button in the top right corner.

I'd like to see a list of this year's pension payment dates.

Enhanced Early Retirement Benefit

The Enhanced Early Retirement Benefit;(EERB) program allows LAPP members who receive a retiring allowance to purchase a pension enhancement with those funds if they retire within six months of ending employment. The EERB is a way that members can minimize their early retirement reduction. To do this, a member would need to receive a retiring allowance from their employer, which exists under the tax rules and relates to a payment following retirement in recognition of long service or as severance pay.

Can I Apply For an Enhanced Early Retirement Benefit?

You can apply for an EERB ('benefit enhancement') if:

• You're 55 years of age or older when you leave your employer;
• You have two years or more of LAPP membership or service; and
• You'll receive a retiring allowance from your employer on any pre-1996 employment.

The benefit enhancement can only be purchased with retiring allowance money that is eligible for rollover to a registered pension plan (RPP) or registered retirement savings plan (RRSP) under the Income Tax Act.

What Does the Enhancement Do?

Normally, if you retire before age 65 without reaching your 85 factor, your pension is reduced. This reduction is 3% for every year early that you retire. If you purchase the enhancement, you can lower the reduction, to a minimum of 1.5%. More detail can be provided in a cost estimate.

The Cost Estimate

You can ask your employer to have LAPP estimate:

• The approximate cost of the benefit enhancement;
• What portion of the benefit enhancement can be purchased if you know the amount of your retiring allowance;
• Your regular pension options without the benefit enhancement; and
• The approximate additional LAPP pension increase that can be expected from purchasing the benefit enhancement.

If you ask your employer to request an estimate from LAPP, you'll need to provide your employer with:

• The date your employment will end;
• The date your pension will start; and
• Your pension partner’s birth date (if you have a pension partner).

Estimates will be calculated as of the month in which we receive your request, based on your age when the pension will start and using estimated pensionable service and salary up to the date your employment will end.