What happens to your pension after you retire?
Working after your pension begins
If you are receiving a pension from the OPSEU Pension Plan and start working again, who you work for may affect your OPTrust pension. If you work for an employer who does not contribute to the Plan, your pension is not affected. If you are re-employed or engaged by an employer who contributes to the Plan, the impact on your pension depends on your salary and whether or not you re-join the Plan. It is your responsibility to inform a participating employer that you are currently receiving a pension from OPTrust.
Without Plan membership: Your monthly pension is subject to an earnings maximum each calendar quarter (e.g. January – March), if you are i) re-employed or engaged by an employer who contributes to the OPSEU Pension Plan, and ii) if you do not re-join the Plan as a contributing member. Your re-employment earnings maximum is determined by subtracting your quarterly pension income from your final quarterly pre-retirement salary. The amount left over is the maximum amount you can earn in a calendar quarter from re-employment before we reduce your pension. This amount is provided on your confirmation statement from OPTrust and your Pensioner Information Change Statement. If you are unsure of the limit, please call OPTrust. If you do exceed your maximum for the quarter, we will reduce subsequent pension payments by the amount that you have exceeded your maximum.
Example: Determining your re-employment maximum earnings
Final quarterly pre-retirement salary:
minus Quarterly pension income:
Note: We use your gross salary and gross pension in our calculations. Your maximum is also expressed as a gross amount.
When your employer reports your quarterly re-employment earnings to our office, they report the amounts paid to you on the pay dates that fall within the calendar quarter.
With membership: Depending on your re-employment and your age, you may have the option to re-join the Plan. If you re-join, your pension stops immediately. While you are making contributions to the Plan, you are accruing additional pension credit so when your employment ends, we will re-calculate your pension.
OPTrust will add the additional credit you earned during your re-employment to your previous credit (whether you retired under the Factor 80, Factor 90 or 60/20 provisions or at age 65). OPTrust then re-calculates your pension at the end of your re-employment period to include the additional credit you accrued. However, if you were previously receiving a reduced pension, your new pension amount will be actuarially adjusted to take into account any pension payments you have already received.