Retiring with a pension from the OPSEU Pension Plan
Retiring with a pension from the OPSEU Pension Plan
What happens to your pension when you reach age 65?
How is your pension protected when you retire?
What happens if you work after your pension starts?
What could happen to your pension benefit if your spousal relationship ends?
What about health, dental and life insurance benefits after retirement?
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 in 2011, it is reduced 6% for every year you are less than 65. The annual maximum benefits are adjusted every year to reflect changes in the cost of living. The maximum monthly pension in 2011 was $960.00. For more information, contact your local Service Canada office.
Age 65 -- OPTrust pension integrated with CPP
When you reach age 65, OPTrust integrates your pension with CPP. 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 pension you receive from the OPSEU Pension Plan is adjusted for CPP integration and to reflect the lower contributions you made to the Plan while you were employed. For more information on CPP integration see OPTrust’s booklet Your Pension During Retirement.
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.