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What about divestments to the OPSEU
Pension Plan?
The same rules apply under the Pension Benefits Act if
you join the OPSEU Pension Plan as a result of a divestment. In
this case OPTrust would recognize your period of membership in
your former pension plan when determining your eligibility to retire
under the provisions of the OPSEU Pension Plan. Your former plan
would also be required to recognize your employment with your new
employer in determining your pension eligibility under that plan’s
provisions. Here’s an example:
Mirabel works for a municipal
agency where work is divested to the Province of Ontario. When
she was divested, Mirabel had 9 years of service with her former
plan. At retirement she has worked 22 years in the Government of
Ontario and is age 59. Mirabel has a Factor 90 (age + service =
90) under both plans.
|
OPSEU Pension Plan |
Employment with New Employer |
Total |
| Credited Service |
22 |
9 |
31 |
| Age at Termination |
|
|
59 |
| Years + Service |
|
|
90 |
| Best Average Salary |
$53,000 |
$45,000 |
|
| Former Employer (unreduced pension) |
2% × 22 yrs × $53,000 = |
$23,320 |
| OPTrust (unreduced pension) |
2% × 9 yrs × $45,000 = |
$8,100 |
| Pension Entitlement |
|
$31,420 |
Mirabel retires with an unreduced pension
of $19,800 from the OPSEU Pension Plan as well as an unreduced
pension of $9,540 from her former employer’s plan, giving
her a combined pension of $29,340.
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