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The OPSEU Pension Plan provides members with the following benefits:
The normal retirement age under the Plan is 65. Vested members – those with two
or more years of credit or continuous membership in the Plan – have the right to
an unreduced pension at age 65, based on their credit in the Plan and their best
average annual salary rate during their membership.
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OPTrust’s Pension Formula – The member’s lifetime annual OPTrust pension is
calculated using the following formula:
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2% |
| times |
best 60 consecutive months average annual salary rate |
| times |
years of credit in the Plan |
| minus |
OPTrust bridge benefit (a reduction at age 65) |
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Members may also qualify for an early unreduced pension before age 65, based on
their age and years of credit in the Plan. Members who retire under any of these
options receive an immediate unreduced pension based on the OPTrust Pension
formula, with no reduction for CPP integration until they reach age 65.
OPTrust’s early unreduced pension options include:
Factor 90 – the member’s age plus credit total 90 years or more.
60/20 – the member is at least 60 years old and has 20 or more years of credit.
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In certain cases, members who receive a layoff notice may also be able to
“bridge” to one of the unreduced retirement options above. The bridging option
requires a special provision in the member’s collective agreement.
Vested members who are age 55 or older but are not yet eligible for an immediate
unreduced pension have the option of choosing an immediate reduced pension.
Members who terminate from the Plan before age 65 and are not entitled to an
immediate unreduced pension have the option of leaving their entitlement in the
Plan and receiving a pension on retirement. In addition, members who are moved
to other employers in a divestment situation and enrolled in the new employers
pension plan may be required by law to accept a deferred pension from the OPSEU
Pension Plan in order to protect benefits already earned.
Upon the death of a member or pensioner, survivor benefits are payable to a
surviving eligible spouse, eligible children or other beneficiaries.
A disability pension is available to members with a minimum of 10 years of
credit in the Plan who are totally and permanently disabled and meet the
criteria as established in the Plan text.
Members who meet the criteria for total and permanent disability but who have
less than 10 years of credit may apply to receive a special disability refund
under the Plan.
In the case of limited life expectancy, provisions exist to access lump-sum
payouts, provided spouses waive their survivor pension and have met other
conditions.
An adjustment to pension benefits for inflation is made annually based on the
Consumer Price Index (CPI) to a maximum of 8% in any one year. Where the
inflation adjustment exceeds 8% in any one year, the excess is carried forward
to any subsequent year when the adjustment is less than 8%. The adjustment is
made to both current pensions and the future value of deferred pensions.
Subject to certain restrictions, a member that is less than 55 years of age and
who terminates employment may be entitled to transfer the commuted value of his
or her pension and/or a refund of contributions to a registered retirement
savings plan, or use these funds to purchase a life annuity. Depending on their
circumstances, members may also be eligible for a refund of contributions or
excess contributions, which may be paid in cash, subject to withholding of
income taxes.
Under the OPSEU Pension Plan, members may be eligible to purchase – or “buy
back” – credit for eligible periods of past service. Eligible service includes:
past service with an employer who contributed to the OPSEU Pension Plan, the
PSPP or its predecessor, or service with another registered Canadian pension
plan. To be eligible, members must submit a buyback application to OPTrust
within the Plan’s 24-month time limit.
On joining the Plan, members may be eligible to transfer credit earned under
another Canadian registered pension plan into the OPSEU Pension Plan. The terms
under which such transfers may be made – including eligibility criteria and
application time limits – are set out in reciprocal transfer agreements between
OPTrust and certain other plans.
A member who terminates employment and membership in the OPSEU Pension Plan may
be entitled to transfer the value of his or her pension to another pension plan
if OPTrust has a reciprocal transfer agreement with this plan. In addition,
members who do not terminate employment but must move to the Public Service
Pension Plan due to a change in bargaining unit status are subject to mandatory
transfer arrangements.
Revised April 12, 2007
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