Long Term Income Protection

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If you become disabled you may qualify for benefits under the Long Term Income Protection (LTIP) provided by the Ontario Public Service, or an equivalent long-term disability plan. Your human resources or union representative can provide you with more information and let you know whether the benefit plan has been approved for purposes of the pension plan.

What happens if you qualify for LTIP?

Currently, if you qualify for a benefit under an approved LTIP (or equivalent long-term disability plan as determined by the Board) and do not resign from your employment, you continue to accrue pension service at your pre-disability rate. Your employer is required to make both their share and your share of contributions to the Plan on your behalf until you recover, resign from your employment, reach age 65, start your pension, or die (whichever occurs first). This also applies if you qualify for LTIP, but are paid directly by WSIB. Whether you qualify for LTIP is a decision made by your employer.

For pension purposes, if you qualify to receive LTIP, or qualify for LTIP but are paid by WSIB, the annual salary rate you were earning on the date of your disability is the base rate used for determining both your pension contributions and pension benefit. This “base rate” is currently adjusted each year based on the inflation adjustment applied to pensions, not the rate of pay in the collective agreement. For more details read the OPTrust fact sheet Long Term Income Protection and Your Pension Contributions. Be sure to read about disability pensions, as well.

What happens if you only qualify for WSIB?

If you are paid directly by WSIB and do not qualify for LTIP, you have the option to accrue pension service by paying contributions to OPTrust during the period of your WSIB leave. You must complete the Application to Contribute during an Unpaid Leave of Absence (OPTrust 1025) form to advise OPTrust of your choice. If you choose not to contribute while on leave, under the current plan terms, you may apply to buy back the missed pension service, after your leave has ended. If you apply within 24 months from the end of your leave, you may take advantage of the more favourable contribution-based costing option and employer matching contributions. If you apply more than 24 months after the end of your leave an actuarial costing method is used and is often more expensive as you are then responsible for paying the full value of the pension service you are purchasing. For more details, refer to our fact sheet Contributing to Your Pension while on a WSIB Leave.