OPTrust pensions are paid on a monthly basis, usually on the 26th day of the
month, except for December when pensions are paid approximately one week
earlier. If the date of payment falls on a weekend or holiday, the actual
payment will be made on the prior business day.
Pension payments commence in the month following the member’s retirement date.
John Doe retires on February 13, 2011. Mr. Doe’s first
pension payment will be for the month of March and will be deposited into his
account on March 26, 2011.
Monthly pensions are paid by direct deposit to the pensioner’s bank account.
Unless otherwise instructed by the member, OPTrust will only deduct income tax
based on the OPTrust pension income and applicable ITA requirements.
Annual Increase for Inflation Protection
In January of each year, every pension in pay (including a survivor pension) is
adjusted to reflect the increase in the cost of living. The adjustment is
applied annually starting with the year after the retiree’s pension commences,
with the first adjustment pro-rated for the length of time the pension was paid
during the previous year.
The annual inflation adjustment reflects the increase in the cost of living in
Canada as measured by the Consumer Price Index. It is calculated by dividing the
CPI average for the two 12-month periods ending the preceding September. For
example, the 2011 inflation adjustment was calculated as follows:
Average CPI for October 2009 to September 2010
Average CPI for October 2008 to September 2009
The maximum increase applied in any one year is 8%. Any increase over 8% is
carried over into the next year, to be applied when the adjustment is less than
8%. A Pensioner Information Change Statement outlining the pensioners’
individual annual inflation protection adjustment is mailed mid-January each
year to pensioners in pay.
– Retroactive Salary Changes: The employer must
notify OPTrust when a retroactive salary change has been implemented after the
member’s retirement date. OPTrust will recalculate the pension, and make any
retroactive payments necessary.