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Disability Benefits & Limited Life Expectancy |
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If a member is no longer able to work due to a medical or physical condition,
he/she may be eligible to receive a disability benefit provided by OPSEU Pension
Plan. To qualify for a disability benefit the individual must be totally and
permanently physically and/or mentally disabled as certified by a medical doctor
licensed to practice under the laws of Ontario.
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Note: Totally and permanently disabled is defined as:
a physical or mental impairment that prevents the individual from engaging in
any employment for which the individual is reasonably suited by virtue of his or
her education, training or experience and that can reasonably be expected to
last for the remainder of the individual’s lifetime.
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In order to receive a disability benefit, the member must apply to OPTrust and
satisfy the above criteria. The member must also resign from his/her current
employment. A medical assessment is made and provided to OPTrust, based on this
medical assessment, OPTrust makes a decision with respect to eligibility for
disability benefits.
The member’s total credit or membership in the Plan will determine if the member
is eligible for either a disability pension, or a special disability refund.
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Important! Disability applications are normally made at the
time of termination, however, termination of plan membership is not required
before a disability application is made.
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If the member has less than 10 years of pension credit and membership, the
member may receive a special disability refund.
This refund is a one-time lump-sum payment based on the member’s contributions
plus interest. The formula used by OPTrust to calculate a special disability
refund is:
2 x (pre-1987 contributions, plus interest) + 2 x (post-1986 contributions, plus
interest)
less
all contributions, plus interest for purchases of credit where the employer did
not contribute
less
any Commuted Value + excess contributions, plus interest
= Disability Refund |
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If the member has more than 10 years of pension credit or continuous membership,
the member may be eligible for a disability pension calculated using the Plan’s
basic retirement pension formula.
The pension benefit is based on the member’s credit in the Plan up to the date
of termination. It will be reduced for CPP integration at age 65.
A disability pension is payable for the member’s lifetime providing that the
member remains totally and permanently disabled. If the medical condition of the
member improves, and the member is able to return to work, the disability
pension would cease.
As with all OPTrust pensions, disability pensions are adjusted every January for
the increase in the cost of living (as measured by the Consumer Price Index).
The adjustment is applied the year after the pension commences. Any pension paid
to an eligible survivor will also be increased annually for inflation.
Disability pensioners are also eligible to receive
post-retirement health and
dental benefits.
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Note: Individuals who do not qualify for a disability pension, but did
receive a disability refund are not eligible to receive post-retirement insured
benefits.
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Members have the option to apply for LTIP benefits before applying for a
disability pension. If LTIP is approved, the member will receive 66 2/3% of
his/her monthly earnings, which may be a higher income than a disability
pension.
Also to consider, while in receipt of LTIP benefits, the employer continues to
make pension contributions on the member’s behalf and therefore the member is
accruing more credit in the OPSEU Pension Plan.
However, LTIP benefits are reduced for any other benefits the member may be
receiving (e.g. CPP disability pension, or benefits from the Workplace Safety
and Insurance Board). An OPTrust disability pension is not reduced for any other
benefits the member may receive.
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Important! If the member is age 55 or older, they may elect to
receive an immediate reduced pension while the disability benefit application is
processed. If the disability pension is later approved, OPTrust will pay the
retroactive benefit for the difference. This is not available if member is
applying for a disability refund.
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Revised October 7, 2005
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