Divestments and Calculating Your OPTrust Pension

Under Ontario’s Pension Benefits Act, there are special rules protecting the pension entitlements of Plan members in the event of a divestment.

These special rules apply if the divestment meets the following conditions:

• The former employer transfers all or part of an operation to another employer
• The affected employees become employed by the new employer
• The new employer contributes to a different pension plan
• The affected employees become members of the new employer’s pension plan.

If you are part of a divestment that meets these conditions, your pension entitlement will stay with OPTrust, and you will have the right to a “special deferred pension” from the OPSEU Pension Plan. Your pension for service after your divestment date will be under your new employer’s pension plan.

Under the special rules for divestments, OPTrust must recognize your employment with the new employer following the divestment when determining your eligibility for retirement. This means that your service with your new employer may help you qualify for early retirement under the OPSEU Pension Plan. Similarly, your new employer’s pension plan must recognize your membership in OPTrust for purposes of determining your eligibility for benefits.

In calculating the amount of your pension, however, each plan will only take into account your credit and salary history with that plan.

Click here for more information on Factor 80 and other improvements to the OPSEU Pension Plan.