• New client service line for members and pensioners
• Buyback system delivers better service
• Still eligible to complete your buyback?
• New buyback statement coming in February
• Multimedia presentation for new members
• Facts about… "Joint Trusteeship"
• OPSEU appoints new Trustee
• You asked… Buyback application deadlines, Buyback payment deadlines, First pension payment date.

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The OPSEU Pension Trust has launched a new telephone line to give members and pensioners faster access to our client service staff. The new client service line can be reached by calling (416) 681-6100 in the Toronto area or 1-800-637-0024 toll-free across Canada.

Members can use the new line to speak directly to an OPTrust representative about a wide range of pension matters - from ordering an OPTrust booklet or requesting a pension estimate to making a buyback or retiring and starting a pension.

A new  “front end”
The telephone line is the “front-end” for a new client service model that will improve the way OPTrust serves our members and pensioners.

With the new system, calls to the client service line are automatically routed to the first available OPTrust representative. In the past, members’ calls were answered by our receptionist, who transferred them to one of three teams depending on the member’s ministry or employer.

The new client service line offers two advantages. First, it reduces the number of steps before the caller reaches a client service representative. Second, it allows a better use of resources, since all calls will now be answered in the order they are received.

The result will be faster service, particularly during peak calling periods, such as when members receive their Annual Pension Statement in the spring.

Major transactions
We have also improved the way we serve members who start a major pension transaction. Examples include buybacks, commuted value transfers, terminations and retirements. Each transaction is now assigned to a single OPTrust representative, who is the member’s contact through each stage of the process. This will mean more consistent follow-up and better overall service.

Underlying these client service enhancements is a powerful set of pension software, developed by OPTrust over the last three years. This software has improved the speed and accuracy of a wide range of operations - from enrolling new members and tracking pension contributions, to processing terminations and retirements and making monthly payments to our pensioners.

Each of these changes responds to feedback from members and pensioners like you. Through focus groups and our new client satisfaction survey, members have told us that they value being able to speak directly to our client service staff without having to key through a series of automated phone menus. At the same time, members said they would prefer having a single point of contact.

Over time the new system should also help reduce the time it takes to complete important transactions - an area where members have suggested there is room for improvement.

OPTrust’s new client service line connects you directly to one of more than 30 client service staff.

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OPTrust has implemented a new system for processing and tracking buybacks that will mean better information and enhanced service for members.

The first improvement members will notice results from OPTrust’s new approach to client service. Each buyback transaction is now handled by a single OPTrust representative - from the time OPTrust receives the member’s application through to the first payment or payroll deduction.

Tracking payroll deductions
Behind the scenes, other changes have improved the payroll deduction and tracking system. For example, once a member authorizes deductions and the buyback is approved, OPTrust links directly with the employer’s payroll system, eliminating processing delays. We then check automatically that the correct amount is received each pay period.

This allows us to follow up more quickly if payments are interrupted. For example, if you start an unpaid leave without indicating whether or not you want to continue your buyback payments, OPTrust will contact you directly to discuss your available options.

Members who are making multiple buybacks through payroll deductions may notice a change in their pay stubs. In the past, pay stubs for members in the Ontario Public Service (OPS) reported separate payment amounts for each type of buyback. OPS pay stubs now note only the member’s total matched and/or total unmatched buyback contributions for the pay period.

With these improvements, members in the Ontario Public Service (OPS) who are making more than one buyback through payroll deductions may notice a change in their pay stubs. OPS pay stubs now note only the member’s total matched and unmatched buyback contributions for each pay period, rather than reporting separate amounts for each purchase.

Dealing directly with OPTrust
With the new system, members will be able to deal directly with OPTrust on most buyback issues. This includes making an inquiry, submitting a buyback application, making payments while on a leave, or making catch-up payments if payroll deductions are interrupted. For members in the OPS, OPTrust will also issue tax receipts for all buyback payments for members in the OPS, starting with the 2002 tax year (receipts to be mailed in 2003).

More accurate information
Another important change is that members will receive credit for their buyback as each payment is made. As a result, the member’s pension record will reflect the actual credit he or she has accrued.

In the past, members’ records showed the full amount of a buyback as soon as the agreement to purchase was processed. If payments were discontinued, the total credit would have to be reduced for the unpaid portion of the buyback. Similarly, members who left the Plan or retired before the purchase was complete would have to pay the balance as a lump sum or have their credit - and their pension entitlement - reduced.

This change means that OPTrust can now give members more accurate information on their earned credit, the value of their pensions and their eligibility for early retirement.

Members who are currently buying back service will notice this change on their 2001 Annual Pension Statements, to be mailed in spring 2002. The accumulated credit shown on the statement will now include only the paid portion of any buyback. However, the statement will still provide pension estimates that assume the member will complete the purchase.

Providing more accurate pension information will help OPTrust members to make financial decisions and plan for their retirement.

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Have you applied to buy back pension credit at any time since January 1, 1990?

The OPSEU Pension Plan has a strict 24-month deadline for submitting a buyback application. Once your buyback is approved, however, you normally have up to 10 years to finish your payments.

So, if you applied within the 24-month deadline but did not finish your payments, you may still be able to complete your purchase. This opportunity applies even if you originally made no payments, provided you submitted your application within the 24-month time limit.

The OPTrust has set a transitional payment deadline to ensure that all affected members have the opportunity to complete their purchase. Provided you submitted your application after January 1, 1990, and within the 24-month deadline, you can complete your payments before June 30, 2002 or the end of your 10-year payment period, whichever is later.

Please note: You cannot buyback credit for past service if you missed the 24-month application deadline.

Need more information?

• For more information - and a form you can use to request a review of an incomplete buyback - please see OPTrust’s OPTions Update, mailed to you with your Fall 2001 issue of OPTions.
• For general information on buybacks, see OPTrust’s Factsheet: Purchasing Past Service Credit (“Buybacks”).

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OPTrust is introducing a new annual “Buyback Statement” for members who are purchasing past service credit. The statement will give members a report on the status of their buyback as of December 31, 2001.

The statement will include:

• the number of years of credit being purchased
• the total cost
• the principal, interest and total payments made in 2001
• the balance outstanding at year-end.

The new statement will help members track the costs - and the benefits - of their buyback as it progresses. If you are currently purchasing past service, you can expect to receive your statement in the mail in late-February, 2002. Note: the Buyback Statement is not intended for income tax purposes.

Members will continue to receive OPTrust’s regular Annual Pension Statement, which provides a snapshot of their earned pension at Dec. 31, 2001 and projects their pension at retirement. The 2001 Annual Pension Statements will be mailed between April and June, 2002.

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New members are now getting an interactive overview of the OPSEU Pension Plan, thanks to a new multimedia presentation developed by OPTrust. The presentation is available on CD-ROM and is included in the enrolment kit OPTrust sends to every new member.

The presentation lets members click through an introduction to the Plan’s key features - from the pension formula and contribution rates to how the Plan is invested and how to contact us.

The enrolment kit contains other important resources for new members. These include the booklet It’s Your Pension, information and forms for identifying beneficiaries or buying back service, and copies of OPTions, the Plan’s financial report to members, and the brochure Your Pension: an Important Part of Your Financial Future. 

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The OPSEU Pension Trust (OPTrust) was launched in 1995 to give members and the Government of Ontario an equal voice in how the new OPSEU Pension Plan is administered.

Under “joint trusteeship,” the Plan has two sponsors - OPSEU and the Government of Ontario. Each sponsor appoints five members to OPTrust’s Board of Trustees. Together the Trustees establish policies on how the Plan’s assets are invested and how the Plan is administered. The Board also monitors the Plan’s performance and ensures that members and pensioners receive the best possible service and a secure pension in their retirement.

Joint trusteeship means that members and the Government share in the investment risks assumed by the Plan - and in any rewards that result. The sponsors are also jointly responsible for approving any changes to the Plan.

There are two ways that major changes can be made to the OPSEU Pension Plan.

Negotiated changes: Plan changes can result from the collective bargaining process or through a separate agreement between the sponsors. Any negotiated change must be incorporated into a Plan amendment and signed by both sponsors before it comes into effect. The sponsors must also ensure that funds are available to pay for any improvements to the Plan.

Plan gains: Plan changes and benefit improvements can also occur as a result of Plan “gains.” Every three years OPTrust’s actuaries carry out a “funding valuation” of the Plan. If the Plan has more money than it needs to pay for members’ benefits, the excess is referred to as a funding “gain.”

Any gains are divided equally between the two sponsors.

• The Government must first use its share to pay down any unfunded liability it owes. It may then use any remaining funds to reduce employer contributions, create a stabilization fund or improve benefits.
• OPSEU can use its share to improve benefits, reduce member contributions or set aside a stabilization fund.

Even when funded by gains, changes to the Plan’s benefits or contribution rates require a Plan amendment approved by both sponsors.

Results of the next funding valuation, for the years 1999-2001, will be ready in mid-2002. While the Plan had gains of $1.334 billion for 1996-1998, lower investment returns since 2000 are likely to reduce the amount of any gains available in 2002.

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OPSEU has named Don Jordan to the OPTrust Board of Trustees.

An OPSEU member since 1978, Jordan has been a union steward and local activist in the London area for 12 years. Since 1990, he has worked as an Occupational Health and Safety Officer with the Ministry of Labour. He is currently on secondment to the Ontario Human Rights commission as an investigator.

“I’m getting to an age when a pension seems less like an abstract concept, so I know how important the Plan is to our members,” Jordan recently told OPTions.

“The fact that members have a real voice in the OPSEU Pension Plan is very important,” he continued. “As a Trustee, I hope to encourage more members to take an active interest in the Plan.”

Don Jordan joined the OPTrust Board in November 2001.

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Q.: I joined the Plan in 1995 when I was hired as a classified employee. Can I still apply to buy back my unclassified service from before 1995?
A.: No. Under the OPSEU Pension Plan, you have a maximum of 24 months to submit a buyback application, starting from:

• the date you become a member of the Plan, or
• the last day of a leave of absence you want to buy back.

Because more than 24 months have passed since you enrolled in the Plan, you are no longer eligible to purchase your unclassified service.

For more information, see the OPTrust Factsheet: Purchasing Past Service Credit ("Buybacks"), or contact OPTrust at (416) 681-6100 or 1-800-637-0024.

Q.: I took an unpaid leave of absence in 1989. I sent in a buyback application in 1990 but didn’t complete my payments. Can I finish buying back this service now?
A.: Yes. Provided you submitted your buyback application within the 24-month time limit, any time after 1989, you can still complete your purchase. You must complete your payments:

• within 10 years and 3 months of the date of your original agreement to purchase, or
• by June 30, 2002,

whichever is later. In your case, the payment deadline may be as early as June 30, 2002, so you should contact OPTrust immediately.

For more information, see the November 2001 OPTions Update, available on this site, or contact OPTrust at (416) 681-6100 or 1-800-637-0024.

Q.: I’m retiring on March 31, 2002. When will I get my first pension payment.
A.: OPTrust pension payments are made by direct deposit on the 26^th day of each month (except December, when payments are made on or before the 22^nd). New retirees receive their first pension payment in the month following their retirement. So, you can expect your first payment as an OPTrust pensioner on April 26, 2002.

For more information, please see the OPTrust booklet Your Pension and Your Retirement.

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