The following defintions are provided to help you understand the factors used to calculate your pension.
Credited Service—Credited Service is the period of time that you have contributed to the Plan. Your Credited Service may include past service you purchased or transferred into the Plan from another pension plan.
Best 5-Year Average—Your Best 5-Year Average is the average of your best five consecutive years of pensionable earnings. (if you have fewer than five years of service at retirement, the average will be based on your full period of service.) In general, your average pensionable earnings do not include banked pro rata leave, annual leave, or sick leave; however, some pay adjustment are considered pensionable (for example, overtime, acting pay, or shift premium).
CPP Earnings—The Canadian government sets the YMPE (Year's Maximum Pensionable Earnings) annually—you are required to contribute to the Canada Pension Plan (CPP) on your earnings up to the YMPE. For the purpose of your pension calculation, your CPP Earnings are the lesser of your pensionable earnings and the YMPE. CPP earnings are used in the pension formula because the Plan is designed to work together with CPP to provide pension benefits when you retire.