As a member or retiree of the OPSEU Pension Plan, you have earned the right to a secure, lifetime pension in your retirement. You may also have other sources of retirement income, including the Canada Pension Plan (CPP), Old Age Security (OAS) and your personal retirement savings.
Like most major Canadian pension plans, the OPSEU Pension Plan is “integrated” with CPP. Integration means that your OPTrust pension is adjusted to take into account both your CPP contributions and the benefits you will receive from CPP.
The aim is to provide you with a combined pension income – from both OPTrust and CPP – that equals approximately 2% of your average salary multiplied by your years of credited service in the OPSEU Pension Plan. (As we explain later, your actual combined pension income may vary depending when you start to receive your OPTrust and CPP pensions.)
CPP integration means different things at different stages of your life:
- While you are working, it means that your contributions to the OPSEU Pension Plan are reduced to reflect the fact that you also pay contributions to CPP.
- Once you retire, it means that the pension payments you receive from OPTrust are reduced, starting at age 65. This reflects your eligibility for benefits from CPP.
This booklet provides an overview of how your OPTrust pension is integrated with CPP. The CPP benefit calculation can be complex.
As well, CPP benefits and contributions change over time. For more detailed information on the Canada Pension Plan, we suggest you contact CPP using the information at the end of the booklet.