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OPTrust Launches New Plan Expansion Offering – OPTrust Select

posting date Posted: April 20, 2018

OPTrust Select marks the first new jointly sponsored, defined benefit (DB) product offering for modest income earners in a generation

TORONTO, April 20, 2018 – OPTrust, one of Canada’s largest defined benefit pension plans today announced the launch of OPTrust Select, which will offer a secure retirement solution at a moderate cost for both employers and employees.

OPTrust Select

“Research shows that people with a defined benefit pension lead a more fulfilling retirement and in doing so, make greater economic contributions to their communities,” said Hugh O’Reilly, President and CEO of OPTrust. “OPTrust Select brings the advantages of our large scale and investment expertise to more Ontarians who otherwise wouldn’t have access to a DB plan and a secure retirement.”

OPTrust Select will provide members with a steady stream of secure, reliable retirement income and includes the following features:

  • Members contribute 3% of earnings and employers match the contributions *see backgrounder for more information;
  • An annual pension accrual rate of 0.6% of earnings;
  • Earnings upgrades and cost of living increases, dependent on the Plan’s funded status and annual Board approval.

OPTrust Select is targeted to Ontario workplaces in the broader public sector, charitable and not-for-profit groups that do not have a workplace DB pension plan but may have a defined contribution (DC) plan, a group RRSP or no retirement savings arrangement at all.

OPTrust Select will also benefit the OPSEU Pension Plan by creating greater sustainability over the long term through the allocation of risk and operational costs over a broader membership base.

 

About OPTrust

With net assets of over $20 billion, OPTrust invests and manages one of Canada's largest pension funds and administers the OPSEU Pension Plan, a defined benefit plan with over 92,000 members and retirees. OPTrust was established to give plan members and the Government of Ontario an equal voice in the administration of the Plan and the investment of its assets through joint trusteeship. OPTrust is governed by a 10-member Board of Trustees, five of whom are appointed by OPSEU and five by the Government of Ontario.

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Media Contact:
Claire Prashaw
Manager, Public Affairs
OPTrust
1-416-681-3617 
cprashaw@optrust.com

 

BACKGROUNDER
Provision
Contribution Rate
Benefit Formula
Earnings Upgrades
Early Retirement Benefits
Bridge Benefits
Normal Form of Pension
Inflation Protection
Description
3.0% employee and 3.0% employer (total 6%)*
0.6% x pensionable service x upgraded career average earnings
Dependent on the funded status of the Plan and annual Board approval
None
None
Life only with refund of contributions guarantee
Dependent on the funded status of the Plan and annual Board approval
* For years one and two, each new employer contributes an additional 0.2%

 

Membership Eligibility
  • Membership is limited to workplaces in the broader public service (BPS) and Ontario not-for-profit sector
  • Employers can participate in only one schedule of benefits at OPTrust
  • Employees can participate in only one schedule of benefits at any given time
  • Employers and employees participating in the pre-existing schedule of benefits of OPTrust are not eligible to join OPTrust Select.

For more information about OPTrust Select, please visit our Questions and Answers page.

 

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