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Summer/Fall 2005, Number 39
In this issue
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Bargaining Update: Insured Benefits
Improvements
The latest round of bargaining between OPSEU and the Government of
Ontario saw improvements to insured benefits coverage for eligible
pensioners. If you are eligible to receive insured benefits, the
following changes apply to your benefits coverage.
Supplementary Health & Hospital Plan
Insulin Pump and Supplies
Effective August 1, 2005, coverage includes diabetic pumps and supplies
as follows:
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the purchase of insulin infusion pumps to a maximum of $2,000 every 5
years per person
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the purchase of insulin jet injectors to a lifetime maximum of $1,000
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the purchase and/or repair of one blood glucose monitoring machine
per consecutive 4-year period, to a maximum of $400 per person
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100% of the purchase of supplies required for the use of the
abovementioned diabetic appliances to a calendar year maximum of $2,000
per person.
Note: Insulin will continue to be reimbursed as an eligible drug.
Vision Care
Effective September 1, 2005, the vision care maximum will increase to
$340 every 24-month period. Eligible expenses will now include laser
eye correction surgery and one routine eye examination every 24 months.
There is no change in your 24-month benefit period for claiming
purposes. For example: if you purchased glasses in April 2004 at the
cost of $300, you would have another $40 available for an additional
purchase on or after September 1, 2005 (i.e., $40 could be used towards
contact lenses or a routine eye exam or laser eye correction surgery).
However, you would not receive another $340 benefit until April 2006.
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OPTrust Welcomes New Trustee: Michael Beswick
OPTrust is pleased to announce the appointment of
Michael Beswick to the Board of Trustees by the Government of Ontario.
Recently retired in 2004 as Senior Vice-President, Pensions, for the
Ontario Municipal Employees Retirement System (OMERS), Beswick was
associated with OMERS since 1974. He started in the policy area and was
responsible for pension administration, policy, communications, systems
and data. Apart from OMERS, he has worked in the areas of pensions,
employee benefits and compensation in industry.
Beswick plays an active role on a number of Boards including the
Association of Canadian Pension Management (past President), the Board
of Trade Pension and Benefits Committee, and the editorial board of the
Pension and Benefits Monitor magazine. He is a member of the Pension
Committee of the Toronto Board of Trade, and on the Board of Providence
Healthcare and its Pension Committee. He is a past member of the
Salvation Army Investment Committee, the Victoria Order of Nurses
Pension Committee and the Trent University Board of Governors, where he
was chair of Trent’s Investment and Pension Committee.
“In the short time I have been on the Board,” said Beswick, “I have
been very impressed with the professionalism of the Trust's operations
and the quality of service provided. I hope to contribute to the
continuation of this tradition.”
Board Updates
Jordan Berger, a current Trustee, was appointed to Vice-Chair of the
Board in the spring. Berger, who was first appointed by OPSEU to the
Board in 2001, has worked as OPSEU’s Supervisor, Strategic Planning and
Policy Development since 1997. He is responsible for policy research
and planning on a wide range of issues facing the union. During the
early 1990s, he worked as a policy advisor to the Chair of Management
Board of Cabinet during Ontario’s Rae government.
The Board of Trustees extends a fond farewell to Bob Bellamy who served
as a Government appointee from 2000 to 2005. David Rapaport stepped
down as Vice- Chair, but remains on the Board of Trustees.
The OPSEU Pension Trust is jointly sponsored by OPSEU and the
Government of Ontario. Each sponsor appoints five Trustees to the
Board, which is responsible for overseeing the investment of the Plan’s
assets, the administration of members’ and pensioners’ benefits, and
the provision of quality service to OPTrust’s clients. Every two years,
the roles of Chair and Vice- Chair alternate between a Government and
an OPSEU appointee.
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Online Services: How to access the system
In fall 2004, The Pension Connection featured an
article on OPTrust’s new secure Online Services and how to register.
Since then we’ve launched new features for you to:
- view and print your T4A statement
- change your banking information
- revise your TD1 and TD1ON claim amounts
- send and receive secure messages about your pension.
So, if you have access to a computer and an e-mail address, and have
not taken advantage of the different features Online Services has to
offer, why not sign up today?
The information you provide through Online Services is safe and secure.
Behind the scenes, Online Services is a protected environment that
meets the highest Internet security standards.
Registration process
OPTrust’s Online Services provides immediate access to view and update
your personal information such as your address and beneficiary
information – anytime, anywhere. Registering for OPTrust’s Online Services is quick and easy.
Before you begin, be sure to have your 2004 T4A statement with you and
then simply click here to
download instructions on how to register.
If you are unable to register on your own or have questions about the
registration process, contact our Member and Pensioner Services line,
and a staff member will walk you through the process.
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Investments: Real Estate Expansion
In the fall of 2004 we told you about OPTrust’s
commitment to a long-term strategy to increase the size of the Plan’s
real estate investment portfolio. Since then, we’ve expanded our
portfolio with $220 million funded to the end of 2004 and a further
$232 million funded during the first half of 2005. As a result, our
real estate portfolio now comprises approximately 4.0% of the Plan’s
total assets as at June 30, 2005, up sharply from less than 0.3% at the
end of 2003. This growth is in keeping with changes to the asset mix
approved by the Board of Trustees in 2003 to increase the real estate
portfolio to 9.5% of the total Fund.
Real Estate’s Advantage
The trend among many Canadian pension funds is to invest in commercial
real estate, and with good reason. Over time, real estate has proven to
be an excellent investment, providing fund diversification, solid
performance and steady income returns. What’s more, real estate tends
to be more stable than stocks and performs well during periods of
inflation, which can help offset increases to retirees’ indexed
pensions.
Diversity is Key
According to Robert Douglas, Managing Director of OPTrust’s Real Estate
Investments, “Our strategy is to invest directly in office, retail,
industrial and multi-family properties in Canada and use in direct
investment vehicles for the U.S. and other international markets.
However, the cornerstone of our strategy is to ensure diversity by
property type, geography, and investment manager. With this approach we
can draw on the Investment Division’s strengths and resources while
balancing management fees.”
Performance-wise, the real estate portfolio posted returns of 12.9% in
2004, the same as in 2003. According to Mr. Douglas, OPTrust can expect
another year of solid investment returns from its growing real estate
portfolio in 2005. Because of its favourable investment characteristics
for pension funds, real estate will remain a key asset in OPTrust’s
portfolio for the foreseeable future.
OPTrust’s real estate portfolio has a growth target of 9.5% of the
Plan’s total net assets
For more information on OPTrust’s investment portfolio, including real
estate, refer to our 2004 Annual Report.
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You Asked…
Question: I noticed my Pensioner Information Change
Statement includes a power of attorney section. Do I have to designate
a power of attorney?
Answer: OPTrust does not require that you have a power of attorney on
file. This is a personal preference. If for any reason, you are unable
to deal with your financial affairs, you may decide to appoint a power
of attorney. This person would then be responsible to handle any
matters related to your pension. We would require proof once your
appointed attorney starts handling your financial affairs. A power of
attorney cannot change life insurance designations, nor can he or she
designate beneficiaries under the Plan.
Note: Starting this fall the Pensioner Information Change Statement
will be available online. The updated web version will only list a
power of attorney for pensioners who have one on file.
Question: When I worked in the Ontario Public Service, I had access to
an employee assistance program. Does OPTrust offer a similar program
for retirees?
Answer: OPTrust does not offer such a program. But both the provincial
and federal governments offer several resources for seniors – online
and in print. For example, the Province of Ontario operates a Seniors’ INFOline and they provide a booklet entitled
A Guide to Programs and
Services for Seniors in Ontario. For copies, contact the Seniors’ INFOline at 1-888-910-1999 or (416) 314-7511 or visit their website at
www.gov.on.ca/citizenship/seniors.
The federal government also provides information on various programs
through their Seniors Canada On-line website at
www.seniors.gc.ca. For
any questions about programs or publications offered, contact the
federal government at 1-800-622-6232.
Question: Where can I find more information on the insured benefits
class action lawsuit against the Government of Ontario?
Answer: The Toronto law firm Cavalluzzo Hayes Shilton McIntyre &
Cornish LLP is handling the class action lawsuit. In 2004, a notice of
certification was issued to all potential class members. The class
includes those individuals who retired between 1974 and June 1, 2002
(the date the reductions were implemented) and their dependants.
Additional information on the class action lawsuit can be found on the
law firm’s website at www.cavalluzzo.com under “Class Actions.”
Do you have a specific question about your OPTrust pension? When you
register for OPTrust’s secure
Online Services
you can submit questions
through our Secure Messaging function. When our response is ready,
we’ll send you an e-mail notice with a link to Online Services, so you
can log on to retrieve our reply. Click here for
instructions on how to register.
Of course, our staff is always available to answer your questions. You
can reach the Member and Pensioner Services line at (416) 681-6100 or
1-800-637-0024.
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Working in retirement
Thinking of working part-time? Wondering what will
happen to your pension? Many OPTrust pensioners find part-time work to
keep them busy in retirement. And with an increasing number of
pensioners retiring at a younger age this option is becoming more
common.
If you’ve decided to return to work, either in a full-time or part-time
position, who you work for, may affect your pension. If you work for an
employer who does not contribute to the OPSEU Pension Plan, your
pension is not affected. If you are reemployed or engaged by an
employer who contributes to the OPSEU Pension Plan, the impact on your
pension depends on your salary and whether or not you rejoin the Plan.
Please contact OPTrust before you decide to work again for an employer
who contributes to the Plan. It is your responsibility to inform a
participating employer that you are currently receiving a pension from
the OPSEU Pension Plan.
Without Plan membership
Your monthly pension is subject to an earnings ceiling each calendar
quarter (e.g., January – March) if you are re-employed or engaged by an
employer who contributes to the Plan and you do not rejoin the Plan.
Your earnings ceiling is determined by subtracting your pension income
for the quarter from your final pre-retirement quarterly earnings. Your
re-employment earnings should not exceed this maximum. If your total
income in any calendar quarter after retirement is more than your
quarterly employment earnings before retirement, we will reduce your
pension by the amount you exceed your pre-retirement earnings.
With Plan membership
Depending on the nature of your reemployment and your age, you may have
the option or may be required to rejoin the Plan. If you rejoin, your
pension stops immediately. While you are making contributions to the
Plan, you are accruing additi onal pension credit so when your
employment ends, we will recalculate your pension.
OPTrust will add the additional credit you earned during your
re-employment to your previous credit whether you retired with an
age-reduced pension or with an unreduced pension under the Factor 80,
Factor 90 or the 60/20 provisions or at age 65. OPTrust then
recalculates your pension at the end of your re-employment period to
include the additional credit you accrued. However, if you were
previously receiving an age-reduced pension, your new pension amount
will be actuarially adjusted to take into account any pension payments
you have already received.
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Great-West Life ID Numbers
Earlier this year, we informed you of a project between OPTrust and
Great-West Life to provide OPTrust pensioners – who are eligible for
insured benefits – with new client identification numbers for insured
benefits claims. The new ID numbers will be ready later this fall and
you will receive a personalized letter identifying your new number. In
the meantime, you should continue to use your Social Insurance Number
for all insurance benefits claims.
For more information on your benefits with Great-West Life, refer to
their website at www.gwl.ca.
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Moving? Don’t forget to keep in touch
Planning to move this summer or fall? Don’t forget to
notify OPTrust of your new home mailing address. That way you will
continue to receive The Pension Connection, you’re personalized
Pensioner Information Change Statement, T4A statements and other
important information about your pension.
You have two options to update your home mailing address:
- Log on to our secure Online Services, and update your information
online click here for
instructions on how to register.
OR
- Complete a
Personal Information Change Request
form.
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Parlez-vous Français?
For our bilingual pensioners, OPTrust offers a French
version of The Pension Connection. If you would prefer to receive a
copy of The Pension Connection in French, send an e-mail message to
communications@optrust.com or contact our Member and Pensioner Services
line at (416) 681-6100 or 1-800-637-0024 (toll-free within Canada).
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