When members terminate from the OPSEU Pension Trust, they may be eligible to
transfer credit to their new pension plan.
Special transfer arrangements exist for members who leave the OPSEU Pension Plan
and become members of the Public Service Pension Plan (PSPP), administered by
the Ontario Pension Board (OPB).
Bargaining Unit Status and Membership in the PSPP
Members of the PSPP include management and excluded staff and employees
represented by other non-OPSEU bargaining agents in the Ontario Public Service
(OPS) and certain provincial government agencies.
Bargaining unit status is a criteria used in determining whether an employee is
eligible for membership in the OPSEU Pension Plan or the PSPP. As a result, a
permanent change in an employee’s employment and/or bargaining unit status can
result in a change in plan membership. For example, if an OPS employee who is
represented by OPSEU accepts a permanent non-bargaining unit position, he or she
would cease to be a member of the OPSEU Pension Plan, and would be automatically
enrolled in the PSPP.
An employee’s plan membership is not affected when he or she
accepts a temporary or acting assignment to a position that is covered by
another pension plan.
Mandatory vs. Optional Transfers
Under the rules of both Plans, when a change in a member’s employment or
bargaining unit status results in a change of pension plan affiliation, the
transfer of their accumulated credit from the former to the new plan may be
either mandatory or optional. This depends on whether the employee moves to the
new position without terminating his or her employment.
Mandatory Transfers to the PSPP
A mandatory transfer from the OPSEU Pension Plan to the PSPP is required
whenever an employee moves directly from a position in the OPSEU bargaining unit
to a management, excluded or AMAPCEO position without terminating employment.
The employer must complete a Transfer of
Membership Between the OPSEU Pension Plan and the Public Service Pension Plan
form (OPTrust 1040) whenever a member moves permanently from a position in the
OPSEU bargaining unit to a management, excluded or AMAPCEO position.
Optional Transfers to the PSPP
If there is a break in service between the employee’s membership in the OPSEU
Pension Plan and his or her enrolment in the PSPP, transferring credit from
OPTrust to the OPB is optional.
To complete an optional transfer to the PSPP, the employee must:
have been a member of the OPSEU Pension Plan and subsequently terminated
be entitled to a deferred pension benefit or a refund of contributions from
the OPSEU Pension Plan
not be receiving a pension from the OPSEU Pension Plan
become a member of the PSPP
complete and submit a request to the OPB and OPTrust to transfer this service.
Employers should remind members that there is a
strict 24-month time limit for submitting an application to transfer credit from
the OPSEU Pension Plan to the PSPP.