Terms
Terms
A DB pension plan provides a member with a set (defined) pension for their lifetime once the member retires.
The math used to figure out a member’s pension payment includes a member’s salary and years of service, not how much the member contributes or the returns on pension fund investments.
Your LAPP pension is a DB pension plan.
Your Pension Profile (formerly called mypensionplan) is LAPP’s safe, secure way to access your personal pension details and tools to help you manage your information and plan for retirement, all without leaving this website.
LAPP members can log in or register by clicking “Login” in the top right corner of this website.
A figure, set each year by the Canadian government, that specifies the earnings amount that can be used in calculating contributions to the Canada Pension Plan (CPP) and can be used in calculating contributions to registered pension plans, such as LAPP for each year.
A pension that will not be reduced for early retirement.
65 is considered the ‘normal’ retirement age.
You can start receiving your pension as early as age 55 and still receive an unreduced pension if your age at retirement plus your years of service equals 85 points. This is called the 85 factor.
The number of years you contribute to the Plan plus:
- any service you have transferred into the Plan, or
- prior service or periods of leave you have purchased.
For members who work part-time, pensionable service is based on the hours worked in that year (ignoring anything that is considered overtime), divided by the regular full-time hours for that position.
The maximum amount of pensionable service a member can earn in LAPP is 35 years.
More at: How is My Pension Calculated?
A salary that has been annualized is used to determine the contributions paid to the Plan as well as the highest average salary to calculate the pension for a person who has worked part-time. When a salary is annualized, the result is the amount a person would have earned if he or she worked full-time over the same period.
If you work part-time, you can calculate your own salary on an annualized basis by dividing your annual part-time earnings by your full-time equivalency (FTE).
For example, if you earned an average of $45,000 per year in a 0.6 position:
$45,000 (Yearly Part-Time Salary)
÷ 0.6 (FTE)
= $75,000 (Salary on an Annualized Basis)
The average of your five highest consecutive years of salary used to calculate your pension benefits, taken from the employment information reported by your employer(s).
If you have periods of part-time employment being considered in determining your HAS, the annualized salary will be used.
For the purposes of calculating your highest average salary, the salary for a given year may not exceed the corresponding salary cap.
The maximum salary set by the plan rules, in order to ensure your benefit does not exceed the Income Tax Act defined benefit limit.
The 2025 salary cap is $209,223.50.