Commonly Used Pension Terms
Basic pension — is the gross pension payable at age 65. See "Calculating your basic pension".
- the former employer transfers, or "divests," all or part of an operation to another employer
- affected employees become employed by the new employer
- the new employer contributes to a different pension plan, and
- the affected employees become members of the new employer's pension plan.
When OPTrust members are affected by a divestment, their earned pension remains with OPTrust and they have the right to a "special deferred pension" from the OPSEU Pension Plan. The new employer must recognize the period of membership in the OPSEU Pension Plan when determining eligibility for the new employer's pension plan.
Division of pension — where one spouse, on dissolution of the spousal relationship, may obtain a share of the pension value earned by the other spouse during the period of marriage or common-law or same-sex relationship.
Eligible child — under the OPSEU Pension Plan, a child is eligible to receive survivor benefits if the child is under the age of 18, or if over 18, the child is in continuous full-time attendance at a secondary school or, immediately following secondary school, is attending a post-secondary institution to a maximum of five years.
Immediate pension — a pension payable at the end of the month following the month of termination from the Plan. An immediate unreduced pension may be payable to a member who qualifies for Factor 90, 60/20 or age 65. An immediate reduced pension is payable as early as age 55.
Lifetime pension - is the pension amount paid to you after integration with CPP at age 65. If you start your pension before age 65, OPTrust provides the full 2% pension. When you reach age 65, your 2% pension is made up of the OPTrust portion and the CPP portion.
Re-employed or engaged — a re-employed pensioner is someone who is working for (becomes an employee of) an employer who contributes to the OPSEU Pension Plan. The pensioner is considered engaged if he or she has a fee-for-service contract with an employer who contributes to the Plan.
Residual balance — when a pensioner dies and all eligible survivors have been paid, a calculation is done to determine if there is any money owing. This calculation compares the pension payments made plus all the survivor benefits paid to the total amount the member contributed, plus interest, to the Plan.
- are married to each other
- are living together in a conjugal, common-law or same-sex relationship
- for at least three years
- have a relationship of some permanence and are the natural or adoptive parents of a child.
- for at least three years
Generally, a spouse is not eligible for survivor or death benefits under the Plan, if the spouse and the member are living separate and apart at the date of death (for pre-retirement death benefits) or the date that the first pension payment is due (for post-retirement survivor benefits.)
Termination — in the OPSEU Pension Plan "termination" of Plan membership means that you stop making contributions to the pension plan because your employment has ended. Employment could end because of retirement, layoff, dismissal, resignation, death or permanent disability. When your employment ends and you no longer make contributions to the Plan, you stop being a member of the Plan (you terminate your membership).
Year's Maximum Pensionable Earnings (YMPE) — the maximum earnings from employment on which CPP contributions and benefits are calculated. The YMPE is changed every year according to a formula based on average industrial wage levels.