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Transfer to another pension planIF THERE IS A TRANSFER
AGREEMENT
The OPSEU Pension Plan has reciprocal transfer agreements with many
other Canadian public sector pension plans. If you take a job with a new
employer that participates in one of these plans, you may be able to
transfer the value of your OPTrust pension to your new plan. If you
qualify, you can transfer your pension even if you are 55 or older.
Each transfer agreement sets out strict application deadlines. If you
are interested in transferring your credit, you must submit your
application to your new plan within the specified time limit. OPTrust
will then work with your new plan administrator to complete the
transfer.
Other pension plans may provide different benefits (e.g., early
retirement options, survivor benefits, inflation protection). As a
result, the actuarial values may vary. In some cases, your credit in the
OPSEU Pension Plan may be worth more, less or the same as the equivalent
credit in your new plan.
If your OPTrust pension has a higher value, you may be eligible to
transfer the remaining value of your OPTrust pension to a LIRA. If your
OPTrust pension has a lower value, you will have the option of paying
the difference or accepting reduced credit in your new plan. The
relative value of your credit in the two plans – and your available
options – will be calculated when you apply for the transfer. You will
usually have 90 days to make your decision.
TRANSFERS TO THE PUBLIC SERVICE PENSION PLAN (PSPP)
There are special transfer arrangements between OPTrust and the Ontario
Pension Board, which administers the PSPP. If you take a job that is
covered by the PSPP, transferring your credit may be either mandatory or
optional.
- A transfer to the PSPP is mandatory if you move to your new job
without a break in employment (e.g., you are promoted to a management or
excluded position with your current employer).
- If you terminate your employment before starting your new job, you
will have the option of transferring your OPTrust credit to the PSPP,
leaving it in the OPSEU Pension Plan, or possibly taking a commuted
value transfer. To transfer your OPTrust pension to the PSPP, you must
apply to the Ontario Pension Board within 24 months of becoming a member
of PSPP.
For more information, please see the OPTrust fact sheet on
OPB/OPTrust
Transfers.
PLANS WITH NO TRANSFER AGREEMENT
If there is no transfer agreement between OPTrust and your new pension
plan, you may be able to use the commuted value of your OPTrust pension
to purchase credit in your new plan. In this case, you may be able to
transfer the commuted value listed on your OPTrust Termination Statement
directly to your new pension plan. Otherwise, you have the option of
transferring the commuted value to a LIRA, and then using the funds to
purchase credit in your new plan. You should ask your employer about
your options before deciding what you want to do with your OPTrust
pension entitlement.
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