• make a lump sum payment to OPTrust for the outstanding balance, or
• receive credit for the amount you have paid to date.

If your buyback application has not been processed yet, we will tell you the cost of the buyback. You then have the option of completing your purchase with one lump-sum payment.

Note: You may be able to make arrangements with your human resources representative to have your outstanding buyback payment deducted directly from any enhanced severance or termination payments. Any credit you buy back adds to your pension entitlement.

Should I transfer my excess contributions from 1987 to 1990 into a Locked-in Retirement Account (LIRA)?
The choice is yours. However, any funds transferred into in a locked-in account cannot be withdrawn until age 55. Another option is to transfer your excess contributions into an RRSP that is not locked in. This kind of RRSP can be cashed if you need the money before retirement. However, any money you withdraw from your RRSP will be subject to income tax.

Why can’t I cash in my LIRA before retirement?
Pension legislation requires that in most cases any funds in a LIRA must be converted to retirement income and are only payable as of the date you would have become eligible to retire. If the funds in your LIRA are from a pension plan like OPTrust that has an early retirement provision, you can start to withdraw those funds on the date you would have qualified for early retirement. So, you can start to use funds that you transfer from the OPSEU Pension Plan for your retirement income as early as age 55.

If you have a limited life expectancy of less than two years (as confirmed by a doctor), or are in a situation of economic hardship (e.g., you are at risk of losing your home or out of work), you can apply for permission to withdraw some or all of your locked-in funds. If you think you are in this situation, contact the Financial Services Commission of Ontario (FSCO) at 1-800-668-0128 or talk to your financial institution.

Why are you sending me a termination options package when I already filled out some of these forms at work?
There are a number of forms that you cannot fill out correctly until you have all your pension information. The Canada Customs and Revenue Agency form (T2151) used to transfer tax-sheltered funds cannot be completed until you know the commuted value of your pension. Any form that requires information about the dollar value of your pension cannot be completed until you receive this options package.

OPTrust’s personalized termination package provides you with the dollar value of your pension entitlement, commuted value or refund. You need information to make an informed decision about your pension options.