Introduction

About OPSEU Pension Trust

The OPSEU Pension Plan is the result of years of discussion
between the Government of Ontario and OPSEU to create a
pension plan in which the members, who go on to become
pensioners, have a say. The Board of Trustees of the OPSEU
Pension Plan Trust Fund administer the OPSEU Pension Plan.
The OPSEU Pension Trust (OPTrust) officially began operating
on January 1, 1995.

OPSEU Pension Trust is a legal trust formed by a contractual
agreement between the Plan sponsors, namely OPSEU and the
Ontario Government. OPSEU Pension Trust is at arm’s length
from both Plan sponsors.

DEFINED BENEFIT PLAN

The OPSEU Pension Plan is a defined benefit plan. This means
that your retirement pension is based on a formula that takes
into account your salary and pensionable service credit.
The OPSEU Pension Plan must comply with Canadian and
Ontario laws that apply to pension plans.

JOINT GOVERNANCE

The OPSEU Pension Plan is governed by 10 trustees, five
appointed by the Government of Ontario and five appointed by
OPSEU. The Board of Trustees is responsible for the investment
of the Plan’s funds and the administration of the Plan.

RISK AND REWARD SHARING

Every three years, all registered pension plans must undertake an actuarial funding valuation to assess whether the required funds will be available to pay expected future pensions. During this valuation, gains and losses are examined based on actuarial assumptions and actuarial experience in the pension plan.

In the OPSEU Pension Plan, gains are shared equally – 50% to members and pensioners and 50% to the Government of Ontario. The members’ and pensioners’ share can be used to stabilize or reduce member contributions or to fund improved benefits, at the choice of OPSEU. The Government of Ontario may use its gains to reduce contributions, to fund improved benefits or create a fund to stabilize its
contributions. If there are losses in the Plan, these are also shared equally, between members and employers, by increasing contributions. Pensioners are not required to pay more.