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What happens to your pension when
you reach age 65?

CANADA PENSION PLAN (CPP)

The Canada Pension Plan provides retirement benefits to individuals who have contributed to it during their employment. The normal retirement age for CPP benefits is 65; however, you can apply for a CPP pension as early as age 60. If you receive an early CPP pension, it is reduced 6% for every year you are less than 65. The annual maximum benefits are increased every year to reflect changes in the cost of living. The maximum monthly pension in 2007 was $863.75. For more information, contact your local Human Resources Development Canada Income Securities Program Office.

Age 65 -- OPTrust bridge benefit ends

When you reach age 65,CPPthe OPTrust bridge benefit ends because you are now eligible to collect a CPP pension. During your membership in the OPSEU Pension Plan, your contributions to the Plan were reduced because you also made contributions to the CPP on the portion of your salary that is between the YBE and the YMPE. When you turn 65 you are eligible to collect a pension from CPP. So the lifetime pension you receive from the OPSEU Pension Plan is adjusted to remove the bridge benefit and reflects the lower contributions you made to the OPSEU Pension Plan while you were employed. For more information on CPP integration see OPTrust’s booklet Your Pension and the Canada Pension Plan.

OLD AGE SECURITY

In addition to CPP, you may be entitled to a monthly retirement benefit from Old Age Security (OAS) at age 65. It is payable monthly, indexed quarterly and taxed as it is paid during the year. Your pension from the OPSEU Pension Trust is not adjusted due to OAS payments.

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