# 2 pensions, double loss of bridge portion?



## coghlan (Nov 8, 2009)

I guess this would depend on the plan, but if someone is eligible for or receiving up to 2 pensions at age 65, does the bridge amount (0.7% x YMPE x 5YrAvg) drop off on both?


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## Eclectic12 (Oct 20, 2010)

Where both offer bridge benefits .... I would expect so. 
As the two plans are likely different - the bridge formula is also likely different.

As I understand it, the bridge is supposed to provide a temporary top up so it's more that it stops/is no longer needed as opposed to a loss.


Cheers


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## coghlan (Nov 8, 2009)

I'm thinking of, say an ex-DND person who left the military with a DND pension at age 45 and then worked for 20 years in the federal public service. At age 65 the PS pension would deduct/remove the bridge, and maybe the DND pension would do the same, if it's set up that way. Alternatively, there could be pension legislation in existence that limits the number of bridge deductions to only one, which would also be useful to know.


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## OhGreatGuru (May 24, 2009)

You're formula is wrong. The reduction (at least in the federal public service) is proportional to the number of years of service (in each pension plan) as well. And you are multiplying the YMPE times a 5yr average of what?

Federal Public service is:
0.625% x (Your average salary up to the AMPE) x (number of years of service) 

See "Your Pension at a Glance" http://pensionetavantages-pensionandbenefits.gc.ca/rnsrgm/vrpr-yppg-eng.html#a6

It isn't clearly explained in the current on-line version of the Pension Plan, (which seems to have less detail than the previous "Your Pension Plan" booklet, but I'm pretty sure CPP uses the 5-yr avge of YMPE for the last 5 years before your retirement in determining the AMPE.

If you were born before 1947, the factor of 0.625% will vary with your age, due to changes in the CPP over the last few years.

I would assume the DND formula is similar.


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## coghlan (Nov 8, 2009)

Right. I didn't factor in nYears, which after about 35 years of service would calculate out to about 20% of YMPE, or ~$10K.

So, if both plans each included a bridge to 65, then combined they wouldn't exceed about 20% of YMPE after roughly 35 years of service.


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