If, based on medical evidence satisfactory to OPTrust, a member who has a life
expectancy of less than 24 months may end their membership in the Plan without
terminating his/her employment. In such cases, OPTrust will pay the commuted
value of the deferred pension in cash, or transfer it to an RRSP.
Pensioners who are already in receipt of a pension, and have a life expectancy
of less than 24 months may also make an application to OPTrust for a lump sum
cash payout in lieu of continued pension payments for their remaining lifetime
and the lifetime of their spouse.
If the pensioner is receiving post-retirement insured benefits and the lump sum
payment is approved, the insured benefits, including family coverage (if
applicable) will continue until the pensioner’s date of death only.
Important! The amount of survivor pension that the spouse
would give up could be considerable. It is important that the spouse understands
what they are giving up.
The member must provide to OPTrust written revocation of each previously
identified beneficiary before the payment can be made. The Pension Beneficiary (OPTrust 1015) form may be used for this
Interest of a former spouse “protected”
A former spouse who is entitled to a portion of the member’s accrued entitlement
as a result of marriage breakdown has his or her rights protected since the
pension entitlement belonging to the former spouse cannot be included in the
commuted value cash payment.
Interest of an eligible child “protected”
If at the time of application the member has an “eligible child” as defined
below, the interests of the “eligible child” are protected which means that the
commuted value can not be paid out as a lump sum payment.
Important! Any benefits the member is receiving under the Long
Term Income Protection (LTIP) plan may be reduced by the amount of the lump-sum