OPTrust’s Pension Formula

posting date Revised: August 2009 print page Print this page Email link to page Email the link

icon  The basic annual pension amount paid to OPTrust members who retire with an unreduced pension is calculated using the following formula:

times Best 60 consecutive months average salary rate
times Years of credit in the Plan
minus       CPP integration (a reduction at age 65)
CPP Integration

At age 65, the member’s OPTrust pension is reduced for CPP integration. This reflects the lower contributions members pay to the OPSEU Pension Plan on the portion of their salary for which they also contribute to the Canada Pension Plan (CPP). The reduction for CPP integration is calculated as follows:

times     the lesser of:
  1. the member’s best 60 consecutive months salary rate and
  2. the member’s final five-year average Year’s Maximum
    Pensionable Earnings (YMPE) under the CPP
times     the member’s years of credit after 1965 (to a maximum of 35 years)

The reduction for CPP integration takes effect in the month after the member turns 65, regardless of when the member chooses to begin receiving pension benefits from CPP. Additional information on CPP Integration at Age 65 is provided later in this section. 

icon Note! The employer should not provide pension estimates or early retirement dates to the member. For this service either direct the member to the OPTrust directly or to the calculator located in the member section of the OPTrust website.