Surplus Factor 80

posting date Posted: August 14, 2009

Toronto (August 14, 2009) – OPSEU and the Government of Ontario have approved an amendment to the OPSEU Pension Plan extending the temporary “Surplus Factor 80” option for eligible members in the Ontario Public Service (OPS).

Surplus Factor 80 is an early retirement option that is available to eligible plan members who are permanently laid off. The provision allows affected members to qualify for an unreduced OPTrust pension if their age plus their credit in the Plan total 80 years or more by the time they leave their employment.

The plan amendment also enables employers and bargaining agents outside the OPS to negotiate agreements to provide a Surplus Factor 80 option to members in other bargaining units.

Surplus Factor 80 in the OPS
If you are a member of the Plan and work in the OPS, you may qualify for the new Surplus Factor 80 provision, if:

  • you are laid off before January 1, 2013, and
  • your age plus your credit in the Plan total 80 years or more before January 1, 2013, and on the date your employment ends.

The new Surplus Factor 80 reflects changes in the OPS collective agreement ratified by OPSEU and the Government of Ontario in early 2009. The provision applies retroactively to eligible members who received a notice of layoff before February 26, 2009.

For members who receive a layoff notice after February 25, 2009, there is one additional eligibility requirement. For these members to qualify, the employer must provide OPTrust with confirmation that the layoff is consistent with the new OPS collective agreement. Under Appendix 17 of the collective agreement, a laid-off member is eligible for Surplus Factor 80 only if the available options for reassignment or redeployment to a permanent vacancy have been exhausted.

The additional cost to the Plan for the extended Surplus Factor 80 provision will be paid by the Government of Ontario.

Surplus Factor 80 in non-OPS bargaining units
For members of other bargaining units, employers and OPSEU may negotiate an agreement to provide access to the Surplus Factor 80 option or other similar provisions. In these cases, the parties must notify OPTrust of the terms of any such agreement.

Pension bridging
Plan members who receive a notice of layoff may also be able to “bridge” to an unreduced pension.

Like the Surplus Factor 80, bridging requires special provisions in your collective agreement. These provisions allow laid-off members to use leaves of absence, the surplus notice period and the period represented by their severance payments to reach their eligibility date for an unreduced pension.

Eligible members can use bridging to qualify for a pension under the Plan’s Factor 90 (age + credit = 90 years) or 60/20 (age 60, 20 years of credit) early retirement options. Where the necessary agreements are in place, bridging can also be used to qualify for a pension under Surplus Factor 80.

Eligible members in the OPS can use bridging to qualify for Surplus Factor 80 as well as Factor 90 and 60/20.

For more information
If you receive a notice of layoff and think you may be eligible for Surplus Factor 80 or pension bridging, please contact your human resources representative and OPTrust for more information.