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The Canada Pension Plan (CPP) was established in 1966 to provide all working
Canadians with a source of retirement income. The OPSEU Pension Plan is
integrated with the CPP, as are many other public and private sector plans.
Integration means that the OPSEU Pension Plan is designed to take into account
CPP contributions and benefits. For instance, during the member’s employment,
both the member’s and the employer’s contributions to the OPSEU Pension Plan are
reduced to reflect the fact that contributions are also payable to CPP for a
portion of the member’s earnings.
At age 65, the retired member’s OPTrust pension payments are adjusted based on
OPTrust’s CPP integration formula, not the amount of CPP pension the pensioner
receives. When a member retires before age 65, the OPSEU Pension Plan “tops up”
the pension paid prior to age 65, which is when CPP payments typically begin.
A member may choose to take his/her CPP pension as early as 60 at a reduced
rate. In this case the CPP benefit will be “stacked” on top of the unintegrated
OPTrust benefit until age 65. The member’s OPTrust pension is reduced for CPP
integration at age 65, whether or not the member chooses to start receiving CPP
benefits early. For more information on CPP Integration, refer to OPTrust’s
booklet Your Pension and the Canada
Pension Plan.
Revised November 26, 2004
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