The Pension Connection 36, Fall 2004

Answer: Registering for OPTrust's Online Services is quick and easy. Simply go to the OPTrust home page at www.optrust.com, and then follow the link to the Online Services.

When you reach the sign-in screen, click on the "register" link and follow the steps. To ensure the security of your personal information, you will need the following to register:

We'll also ask you to answer a secret question, so we can identify you in the future. When your registration is complete, we�ll send a temporary password to your e-mail address. You can then sign-in to Online Services, change your password, and check that your current address and beneficiary information is correct.

If you experience any difficulty registering, or you don�t have a copy of your T4A Statement, please call our Member and Pensioner Services staff at (416) 681-6100 (in Toronto) or 1-800-637-0024.

Question: I've registered for Online Services. How do I use the Secure Messaging feature?

Answer: To send us a secure message, simply log on to Online Services and select "Communicate with OPTrust" and enter your information. When our response is ready, we'll send you an e-mail notice with a link to Online Services, so you can log on to retrieve our reply. No one else can view your question or OPTrust�s response.

Secure Messaging allows you to keep an archive of past messages sent through the system. Unlike regular e-mail, messages sent through Online Services are fully encrypted, to ensure your privacy is maintained.

Question: I want to receive an electronic version of The Pension Connection. How do I notify OPTrust?

Answer: You can set your communications preferences to receive The Pension Connection online. Simply log on to Online Services and select "Communicate with OPTrust." From there you have the option to choose to receive an electronic copy of The Pension Connection. You can also choose to receive your T4A Statements and news about OPTrust online.

Question: I�ve switched banks, is it safe to provide my new banking information through Online Services?

Answer: Yes, the information you provide is safe and secure. Our top priority is to protect the privacy of your personal membership information. OPTrust uses several layers of robust security technology to help ensure the confidentiality of transactions across the Internet.

When you complete a transaction with us online such as updating your banking information, we provide you with a confirmation page for you to print out as a record of your transaction. Further, an e-mail is sent to you to let you know that a transaction has occurred. No details of the transaction are included in the e-mail itself.

Behind the scenes, OPTrust Online Services is a protected environment, which meets the highest Internet security standards.

For more information or to register for Online Services visit our Web site. If you have further questions about Online Services, contact our Member and Pensioner Services staff at (416) 681-6100 or 1-800-637-0024.

Inflation Protection — 2005 OPTrust Inflation Adjustment

We have received several questions about OPTrust's annual inflation adjustment for 2005 and when pensioners will be notified. OPTrust will announce the 2005 increase in December. This information will be featured on our Web site, through Online Services e-blasts and in The Pension Connection.

OPTrust pensioners will also receive a Pensioner Information Change Statement (PICS) in the new year. In addition to outlining the annual inflation adjustment, your PICS provides a detailed snap shot of your pension to date. Look for expanded information on Inflation Protection in the winter issue of The Pension Connection.

Feedback?

Do you have a question about the OPSEU Pension Plan or your OPTrust pension? Would you like to see additional information featured in a future issue of The Pension Connection? We want to hear from you. Send your questions through Online Services or contact our Member and Pensioner Services line at (416) 681-6100 or 1-800-637-0024.

Your feedback is important to us.

Service Improvements on Track for 2004

Members and pensioners regularly give OPTrust good marks on our overall service. Still, one area where you’ve told us we can do better is the time it takes to complete your pension transactions. So, at the start of 2004 we set some ambitious targets for improving our performance. Now, as the year draws to a close, we’re glad to report we are ahead of schedule.

In 2003, we made an important start by reducing the number of current transactions from almost 8,000 at the start of the year to about 5,500 at year-end. By August 2004, this number was down to 3,400. Given the size of the Plan, we expect to have between 3,000 and 4,000 cases open at any given time.

Measuring Our Progress

With this as our starting point, we set a new goal for 2004 – reducing overdue cases to no more than 20% of current transactions by year-end. The 20% target reflects the fact that about one in five cases is delayed for reasons outside our control – usually while we wait for information from other parties.

How are we doing so far? Pretty well, judging by our most recent statistics. On January 1, about 72% of our open cases were overdue. By August 31, we reduced that number to 41%, putting us slightly ahead of our 42% target for this time of year. Over the coming months, we’ll continue working towards the 20% goal – and reporting to you on how we’re doing.

In the meantime, if you have any questions about your pension transaction, please give us a call at (416) 681-6100 or 1-800-637-0024. You can also contact us online, by logging on to the secure Online Services section of our Web site.

Quarter Century Club Seeks Nominations

Have you or someone you know made an outstanding contribution to the community at large? If so, the Quarter Century Club wants to hear from you.

The Quarter Century Club (QCC) is seeking nominations for club members and associates, both active and retired, who have made outstanding volunteer contributions to their local communities.

Nomination criteria

Anyone can nominate a club member (those with 25 or more years of OPS service) or an associate member. Currently, QCC members and associates are with one of the following groups:

About the Awards

Each year, one individual who has demonstrated outstanding and continuous volunteer service for 20 or more years in any one or a combination of volunteer areas identified above, or has made a contribution of extraordinary significance to the people of Ontario, will be selected for a lifetime volunteer award.

In addition to a $1,000 or $2,000 cash prize, each recipient will receive a unique glass sculpture. The cash award can be contributed in the recipient’s name to a recognized charitable organization or toward the expenses of a student enrolled in a post-secondary school in Canada.

Four awards will be granted to QCC members or associates who have five or more years of continuous volunteer service in the following areas:

For more information or to obtain nomination forms please contact the QCC office at (416) 325-1333 or toll free at 1-800-561-8657 or online at www.qcclub.gov.on.ca. The office will also verify if an individual is eligible to be nominated. Completed nominations must be submitted to the QCC office by December 31, 2004.

All OPTrust pensioners are reminded that they can become associate members of the OPS Quarter Century Club by contacting the QCC office. Associate members are eligible to participate in all of the insurance plans and other services offered to more than 65,000 members.

OPTrust Continues Original Nortel Class Action

OPTrust’s role in a major class action lawsuit against Nortel Networks Corp. is not affected by a recent U.S. court ruling on a more recent complaint against Nortel.

On July 13, 2004, a New York court appointed two other pension plans as co-lead plaintiffs in a lawsuit against Nortel covering its 2003 and 2004 fiscal years.

The two plaintiffs were selected from among more than 15 complainants – including OPTrust – based on the court’s determination that those two plans had the largest losses during the affected period.

In December 2001, the courts in New York named OPTrust as lead plaintiff in an earlier class action suit against Nortel – covering the period between October 24, 2000 and February 15, 2001. This suit alleges serious irregularities in Nortel’s accounting and financial disclosure and seeks to recover damages for investors who bought Nortel shares during this “class period.”

The court certified the OPTrust-led class action in March 2004, after unsuccessful attempts by Nortel to have the complaint dismissed. In April, notice of the certification was issued to all potential class members in Canada and the U.S. Pre-trial proceedings are now underway.

The original class action is not affected by the court decision in the more recent case.

OPTrust is pursuing the original lawsuit as part of its fiduciary responsibility to the members and pensioners of the OPSEU Pension Plan and to recover for losses in its investments. As a major institutional investor, OPTrust continues to support efforts to ensure full, timely and accurate financial disclosure and high standards of corporate governance.

In addition to our role as lead plaintiff in the 2000-2001 case, OPTrust remains a member of the proposed class in the 2003-2004 action and retains a stake in any settlement or damages that are awarded.

Insured Benefits: Great-West Life Claims

Have you submitted all your Great-West Life claims for 2003? The deadline for claim submission is nearing. All Great-West Life claims for dental and medical coverage for 2003 must be received by Great-West Life on or before December 31, 2004.

You can download forms from the Great-West Life Web site at www.gwl.ca or on the OPTrust Web site at www.optrust.com. You can track your claim submission online by using GroupNet, Great- West Life’s online service for members.

If you have any questions please contact Great-West Life at 1-800-874-5899 or (416) 440-0406. Please do not send your claim to OPTrust, we cannot guarantee it will arrive before the deadline.

Important:

All 2003 claims received after the December 31, 2004 deadline will not be reimbursed.

Moving? Let OPTrust Know

If you have moved recently – or are planning to move in the future – be sure to notify OPTrust of your new mailing address. That way you will continue to receive The Pension Connection , your personalized Pensioner Information Change Statement and other important information about your pension.

Changes to Your Pension at Age 65

Wondering what happens to your OPTrust pension when you reach age 65? Not sure how CPP integration works? We often receive many questions from pensioners asking about CPP integration and the impact on their OPTrust pension.

Your OPTrust pension is integrated with the Canada Pension Plan (CPP), as are many other public and private sector plans. Integration means that your pension is adjusted to take into account your CPP contributions and benefits. While you were working your contributions to the Plan were reduced to reflect part of the amount you contributed to CPP. Once you reach age 65, the payments you receive from OPTrust are reduced at age 65 for CPP integration.

The aim is to have a total pension benefit (lifetime OPTrust/CPP combined) equal to approximately 2% of your average salary multiplied by your years of credited service. As we will explain later, your total monthly payment (OPTrust/CPP combined) may vary somewhat over time depending on when you take your OPTrust and CPP pensions, and other factors.

When you retire before age 65, the pension you receive from OPTrust includes a “topping up” amount meant to even out your income until age 65 when CPP payments typically begin.

Integration with CPP at age 65

Example:

Let's assume you are 65 years old and retired on September 30, 2004, with the following:

Average annual salary:

$43,000

Credit:

20 years

Average Year's Maximum Pensionable Earnings (YMPE)

2004	$40,500
2003	$39,900
2002	$39,100
2001	$38,300
2000	$37,600

	$195,400 ÷ 5 = $39,080

Using the OPTrust pension formula, your retirement pension would be calculated as follows:
.02 x $43,000 x 20 years = $17,200

minus reduction for CPP integration:
.00655 x $39,080 x 20 years = $5,119

Your gross annual OPTrust pension starting Oct. 1, 2004
=$12,081 ($17,200 - $5,119)

OPTrust uses either the five-year average YMPE or your average annual salary – whichever is lowest – to calculate the CPP integration. In this example, the average YMPE is used to calculate the reduction for CPP integration because the average YMPE of $39,080 is less than your average annual salary of $43,000.

Pension Information at Your Fingertips

The OPTrust Web site provides a wealth of online information about your pension. Our Pensioners section includes important information on your OPTrust pension. When you log on to the OPTrust Web site at www.optrust.com you have access to:

• Retirement Income Calculator – use it to calculate your OPTrust pension at age 65, after CPP integration, get an estimate of your total retirement income including CPP, Old Age Security and RRSPs to find out the difference to your income if you take CPP at 65 or an earlier age.

• Frequently Asked Questions – answers to common pension questions about CPP, Income Tax, Great-West Life claim forms, etc.

• Download Forms – OPTrust forms for pensioners that can be completed online.

• The Pension Connection– quarterly newsletter available in printer-friendly format.

• Other Publications For Pensioners – online publications for pensioners include booklets, current and historical annual reports and the OPSEU Pension Plan text.

Explore the OPTrust Web site for more information about your pension benefits and the OPSEU Pension Plan.

News Alerts

Want to know when new information is available on our Web site? OPTrust has just introduced a “News Alert” feature, where you can sign-up to receive e-mail notices when news is added to the OPTrust Web site.

Did You Know?

Need to change your personal information? Want to update your residency status for tax purposes? Most of OPTrust’s forms are available online. You can download a number of key forms from the OPTrust Web site, including:

You asked. . . Online Services