Retirement: Early Reduced Pension
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Background Information
Retirement
Early Reduced Pension
Under the OPSEU Pension Plan, vested members who do not qualify for an early unreduced pension may retire at age 55 or older with a reduced OPTrust pension.

Under the early reduced pension option, the member’s pension amount is calculated using the Plan’s basic pension formula (without the reduction for CPP integration), then permanently reduced by 5% for each year the member is under 65. At age 65, the retired member’s pension will be reduced for CPP integration.


Important! Temporary “Points Off” Provision: Members who commence an early reduced pension on or before December 31, 2005 are eligible for OPTrust’s temporary “points off” provision.

Under points off, the 5% per year reduction is calculated based on the number of years to the member’s earliest eligibility date under any of the Plan’s permanent unreduced retirement options (i.e. Factor 90, 60/20, or age 65), rather than the number of years to age 65. In projecting this date, we use:
  • the member’s age when the pension commences
  • the member’s credit when Plan membership ended

To be eligible for Points Off the member must:

  • be at least 55 at termination of employment
  • commence a pension prior to December 31, 2005 – therefore must terminate employment on or before November 30, 2005.


Important! Members who are receiving LTIP benefits and are considering taking an early retirement option should be advised to contact OPTrust directly to ensure that they are informed of all available options and the potential consequences associated with each alternative.


Revised November 26, 2004
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