Reduced pension
If you are age 55 or older, but do not qualify for an early unreduced
pension, you may be able to retire with a reduced pension any
time before age 65. Under this option, your pension is calculated using
the Plan’s basic pension formula without the reduction for CPP integration,
and is then reduced.
Normally the reduction equals 5% for every year you are under age 65
when your pension starts. This reduction remains in effect for your lifetime.
Your pension is also reduced at age 65 for CPP integration.
However, if you start your reduced pension by December 2005, the reduction
equals 5% for every year you are away from your earliest permanent unreduced retirement
date (Factor 90, 60/20 or age 65). In projecting this date, OPTrust
uses:
- your age when you begin to receive your pension, and
- your credit in the OPSEU Pension Plan plus your years of employment
with your new employer.
To qualify under this temporary “points off” provision, you
must be at least age 55 when you leave your new employer. You must also
terminate your employment – and notify OPTrust that you want to
start receiving your pension – by November 30, 2005, at the latest.
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