If you elect to start receiving your CPP earlier than age 65, it is reduced according to a formula set out in the Canada Pension Plan Act, currently by 0.6% for every month before you turn 65. In 1995-96 the McMaster University pension plan established a 'bridge' payment for those faculty and staff who retired before the age of 65, so that they could delay taking their CPP pension until they turned 65 and thus avoid having a reduced CPP pension. 

An employee who retires under the special retirement date provisions receives a bridge benefit equal to $19.00 per month per year of pensionable service up until June 30, 1996, to a maximum of 20 years of service. The bridge is paid as part of the McMaster pension from the age of 60, or from the date of retirement, whichever came later, and ceases the month after they turned 65. At that time, the pensioner can elect to start receiving their unreduced CPP pension. Of course, if they had elected to receive their CPP early, they would still be receiving a reduced CPP. If you are eligible for a bridge payment, and do not get the first payment in the month you turn 60, contact McMaster Human Resources.

MURA members who retired under the rule of 80/85 provision and have not yet reached age 65 are reminded that there may be a “gap” between receiving their last monthly bridge benefit from McMaster and their first Old Age Security (OAS) payment. This gap will also exist for the first Canada Pension Plan (CPP) payment for those who retired early and chose to have their CPP start at age 65.

Retirees approaching age 65 are advised to review their retirement documentation and prepare for a gap of up to 2 months between their last bridge payment and their first OAS (and possibly first CPP) payment.

One of our members who retired under the Special Retirement Date provision (rule of 80/85) wrote to MURA, having been surprised by the occurrence of this time gap. After investigating the issue, MURA has confirmed the following:

• The bridge benefit provided under the McMaster Salaried Pension Plan is payable until the month a retiree attains age 65. A retiree’s last bridge benefit payment is paid in advance on the first of the month in which the retiree turns 65 (e.g. 65th birthday between October 1st and 31st, last bridge payment on October 1st).
• The first OAS benefit payment will be received at the end of the month following the month an individual turns 65 (e.g. 65th birthday between October 1st and 31st; first OAS payment at the end of November).
• The first CPP payment for retirees opting to start CPP at age 65 will be paid with the same timing as OAS.

Human Resources has also confirmed that details of pension and bridge benefits and exact payments are explained verbally and in writing in retirement interviews, and that a document detailing the exact start and end date of the bridge is mailed to the retiree’s home shortly after retirement.

[First published Spring 2011, updated August 2019]