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 if you work after your
pension starts?
WORKING AFTER YOUR PENSION STARTS
If you are receiving a pension from the OPSEU Pension Plan and start working again, who you work for may affect your 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 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.
Without rejoining the Plan
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 adding the total of your pension income plus your re-employment earnings for the quarter. This amount should not exceed your final pre-retirement quarterly earnings. 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 re-employment 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 additional 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 under the Factor 80, Factor 90 or 60/20 provision or 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 a reduced pension, your new pension amount will be actuarially adjusted to take into account any pension payments you have already received.