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Under the divestment provisions of the PBA, once you start working for your new employer you begin to earn credit in the new pension plan. Meanwhile, your pre-divestment pension credit remains with the OPSEU Pension Plan in the form of a “special deferred pension.” As a result, you will have the right to collect two pensions when you retire – one from the OPSEU Pension Plan and one from your new plan.
To further protect your pension entitlements, the PBA requires your new pension plan to recognize your period of membership in the OPSEU Pension Plan when determining your eligibility for benefits. Similarly, OPTrust must recognize your period of employment with your new employer when determining your pension eligibility. This means that as you continue working for your new employer, you may be able to qualify for early retirement under the applicable provisions of both plans.
For example, you may become eligible for OPTrust’s early retirement options – Factor 90, 60/20 and the temporary Factor 80 option – based on your total credit in the OPSEU Pension Plan plus the period of your employment with your new employer. Meanwhile, your new plan must take your period of membership in the OPSEU Pension Plan into account when determining whether you qualify under its early retirement provisions.
In determining the amount of your pension, however, each plan will calculate your pension payment based on your credit and salary history within that plan alone.
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