Retiring with a pension from the OPSEU Pension Plan
What happens to your pension when
you reach age 65?
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.
From 2012 to 2016 the CPP reduction for taking the pension before age 65, will increase from 0.5% to 0.6% per month. This means that by 2016, if you start receiving your CPP pension at 60, your pension amount will be 36% less than it would have been if you had taken it at 65. The annual maximum benefits are adjusted every year to reflect changes in the cost of living. The maximum monthly retirement pension in 2012 was $986.67. 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.
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.