"Special Deferred" Pensions
If the PBA Divestment Provisions are met, the individual will cease contributing to the OPSEU Pension Plan effective the date of divestment. The credit he or she has earned in the OPSEU Pension Plan will remain with OPTrust in the form of a “special deferred pension” until the individual terminates employment with the successor employer, or retires.
Under the PBA, divested members retain the right to qualify for each pension plan’s retirement provisions.
- In determining eligibility for benefits under the OPSEU Pension Plan, OPTrust recognizes both credit in the OPSEU Pension Plan and the period of employment with the new employer (since divestment date).
- In determining eligibility for benefits, the new employer’s pension plan will recognize the period of membership in the OPSEU Pension Plan.
The member’s employment for pension purposes is not considered to have terminated until the member terminates membership in the new employer’s pension plan. At that time, the member is eligible for regular termination options.
Note: A member’s eligible service with the successor employer is used to determine qualification or eligibility for retirement benefits in the OPSEU Pension Plan. The credited service in the OPSEU Pension Plan is used to calculate the benefit payable from the Plan.
Important! If a member terminates employment prior to the divestment date and is subsequently hired by the successor employer, the employee could be considered a member of the Plan and the divestment provisions could still apply.
Important! Eligible service does not include prior period service purchased with the successor employer after the date of divestment.
If the member is in the process of buying back past service credit in the OPSEU Pension Plan, they must complete their payments prior to the divestment. If they pay the balance in full, they will receive the full amount of credit they are purchasing. If they don’t complete their payments, they will receive credit only for the paid portion of their buyback.