Working After Retirement

posting date Revised: December 2022 print page Print this page Email link to page Email the link

When a retired member who is receiving a pension from OPTrust is hired or re-hired and returns to work there may be an impact on their pension depending on the amount of their employment earnings and whether their employer contributes to the OPSEU Pension Plan (the Plan).

If the new employer does not contribute to the Plan for any of its employees, the retired member’s pension is not affected.

If the retired member is employed or re-employed by an employer who contributes to the Plan for any of its employees, the impact on the retired member’s pension depends on the salary they earn, and whether they re-join the Plan.

Without Plan Membership

If the retired member is employed by an employer who contributes to the Plan and they do not rejoin the Plan, their monthly pension is subject to an earnings ceiling each calendar quarter. Their “maximum quarterly re-employment earnings”, which is set by OPTrust when the member first retires, is determined by subtracting the retired member’s gross quarterly pension amount from their final quarterly pre-retirement annual salary rate. If their total income in any calendar quarter after retirement is more than their maximum, OPTrust will reduce the retired member’s pension over the next quarter by the amount of earnings that exceeds their maximum.

With Plan Membership

Depending on the retired member's age and terms of employment, membership in the Plan may be mandatory, optional, or not permitted. If the retired member rejoins the Plan, their pension stops immediately and they will resume making contributions. When the member’s employment ends, their pension will be recalculated to include the additional pension service they have accrued. If the retired member originally retired with an early reduced pension, their recalculated pension will be actuarially adjusted to take into account any pension payments already made.

Reporting Employment Earnings for a Retired Member

It is the retired member’s responsibility to inform their employer that they are receiving a pension from OPTrust. The employer is then responsible for completing the Retired Member Quarterly Employment Earnings Report (OPTrust 1008) every calendar quarter and forwarding it to OPTrust. These responsibilities apply whether the retired member is newly employed, re-employed, or still employed after starting their pension due to turning 71 years of age. Please refer to Procedures – Reporting Employment Earnings for a Retired Member for more information.