Following implementation of the pension reforms, minimum guarantee pensions would be split as of the implementation date.
Service prior to the effective date would in effect be “grandfathered” and handled under the current rules (two per cent reduction from ages 60-64, and indexed according to the excess interest formula) and
Only service after implementation would be impacted by the new rules.
In other words, all current active members of the plan who retire on a minimum guarantee pension would have a portion of their pension indexed annually after retirement.
Posted in: The Pension Puzzle: Ask Bob! Part 2