|
Average annual salary – your average salary rate for your five
highest consecutive years of salary during your membership in the
OPSEU Pension Plan. For part-time employees, the average annual
salary reflects the “full-time equivalent” salary rate, not your actual
earnings.
Buyback – the purchase of credit in the Plan for an eligible period of
past service. Click here for a description of the different types
of service you may be eligible to buy back.
CPP integration – a reduction to your OPTrust pension at age 65. CPP integration reflects the lower contributions you pay to the
OPSEU Pension Plan for the portion of your earnings – between the
Year’s Basic Exemption (YBE) and the Year’s Maximum
Pensionable Earnings (YMPE,) – for which you also
contribute to the Canada Pension Plan.
CRA (Canada Revenue Agency) – the federal government
department responsible for administering the Income Tax Act.
Credit – the total period of employment (in years and partial years)
during which you contribute to the Plan, or for which contributions
are made on your behalf, plus any period of past service you buy
back or transfer into the Plan. If you work part-time, your credit is
prorated based on the proportion of full-time hours you work.
Factor 90 – a permanent early retirement option allowing members
whose age plus credit total at least 90 years to retire with an
unreduced OPTrust pension.
OPSEU Pension Plan – a defined benefit pension plan for
employees of the Ontario Public Service and other provincial
agencies, boards, commissions and organizations who are
represented by the Ontario Public Service Employees Union (OPSEU)
or other designated bargaining agents.
OPSEU Pension Trust (OPTrust) – the organization that administers the OPSEU
Pension Plan and invests and manages the Plan’s assets in the interests of its members
and pensioners. A 10-member Board of Trustees governs OPTrust. Five Trustees are
appointed by each of the Plan’s sponsors – the Ontario Public Service Employees Union
(OPSEU) and the Government of Ontario.
Past Service Pension Adjustment (PSPA) – an increase in the “deemed value” of
your pension resulting from a “past service event,” such as buying back credit for
periods of post-1989 service. A PSPA will reduce your available RRSP contribution room. Your PSPA must be approved by CRA before your buyback can proceed.
Pension Adjustment (PA) – the “deemed value” of the pension benefit you earn
during a given year. Your PA reduces your RRSP contribution room for the following
year.
Public Service Pension Plan (PSPP) – the predecessor plan to the OPSEU Pension Plan
and the pension plan for employees of the Ontario Public Service and other provincial
agencies, boards, commissions and organizations who are not members of the OPSEU
Pension Plan. The PSPP is administered by the Ontario Pension Board.
RRSP (Registered Retirement Savings Plan) – a tax-sheltered retirement savings plan
that allows you to make contributions that can be deducted from your taxable income, subject to limits set under the Income Tax Act.
60/20 – a permanent early retirement option allowing members who are age 60 or
older and have at least 20 years of credit to retire with an unreduced OPTrust pension.
Year’s Basic Exemption (YBE) – the amount of employment income you may earn in
a given year without being required to make contributions to the Canada Pension Plan.
Year’s Maximum Pensionable Earnings (YMPE) – the maximum amount of
employment income in a given year on which you will be required to make
contributions to the Canada Pension Plan. The YMPE for each year is established by
CPP based on average industrial wage levels.
|
