IT'S YOUR PENSION HOMEPAGE | CHANGE TEXT SIZE A A A

Taking a deferred pension

RETIREMENT OPTIONS

If you leave your money with OPTrust and choose a deferred pension entitlement, you receive a deferred pension letter as proof of your deferred status. The letter indicates that you are entitled to a pension, normally payable at age 65, from OPTrust. You also have the option of an early age-reduced pension payable as early as age 55.

INFLATION PROTECTION

After your termination date, under the current plan terms, a cost-of-living adjustment is applied annually each January to your deferred pension. The adjustment is intended to provide protection from inflation while you wait for your deferred pension payment to start. OPTrust sends a statement to deferred former members every year to inform them of the cost-of-living adjustment.

REJOINING THE OPSEU PENSION PLAN

If you return to work for an employer who participates in the OPSEU Pension Plan, and you rejoin the Plan, your pension service from all membership periods is joined. You will have to pay back any refund for excess pension contributions you may have received.

JOINING FROM THE PSPP

If you joined the OPSEU Pension Plan and had a deferred pension from the PSPP, your pension service in the PSPP is not automatically added to your pension service in the OPSEU Pension Plan. If you have a deferred pension from the PSPP and want information on moving your prior pension service to the OPSEU Pension Plan, please contact OPTrust for more information. You have the option of joining the pension service or leaving it separate, however, time limits apply.

JOINING ANOTHER PUBLIC SECTOR PENSION PLAN

There are deadlines for transferring your pension service and we can inform you of the terms or any costs that may be involved. Be sure to read over the separate transfer section.

TAKING THE COMMUTED VALUE UP TO AGE 55

Under the current plan terms you can choose to transfer the commuted value of your deferred pension to another retirement arrangement at any time before you turn 55. The commuted value of your pension will change depending on your age and the current market conditions (e.g. interest rate) at the time of the withdrawal from the fund. The amount you can transfer is subject to the maximum transfer limits under the Income Tax Act. If the transferred amount exceeds the maximum transfer limits, the balance will be paid to you in cash, less withholding tax. In limited circumstances, you can transfer the excess amount to your RRSP.

PROVIDING A SURVIVOR PENSION FOR YOUR SPOUSE

Under the current plan terms, if you had a spouse when you ended your membership in the Plan and you have the same spouse when your pension begins, OPTrust pays for a 60% survivor pension at no cost to you, if your spouse meets the eligibility requirements.

PAYING FOR THE SPOUSAL SURVIVOR PENSION
MARITAL STATUS
AT TERMINATION
MARITAL STATUS WHEN PENSION BEGINS WHO PAYS FOR THE
SURVIVOR PENSION?
married/common-law married /common-law (to
same spouse at termination)
OPTrust
single married/common-law you
married/common-law remarried (new spouse) you
married/common-law single not available

For divested members, to be eligible for a survivor pension paid by OPTrust, your spouse must have been your spouse at the date of your divestment, at termination and when your pension begins.

Your pension will be reduced to pay the 60% survivor benefit if:

  • your spouse at retirement was not also your spouse at the time you terminated your membership in the Plan, or
  • for divested members, your spouse at retirement was not also your spouse at the time of your divestment and at the time you terminated your membership in the Plan.

If you do not want to provide this benefit, you and your spouse may waive it, in which case your spouse will not receive survivor benefits when you die. To waive the survivor benefit, you and your spouse must complete the applicable waiver form, Form 3 - Waiver of Joint and Survivor Pension, available on the FSRA website. The waiver is not effective unless the form is signed, dated and received by OPTrust within 12 months before your pension begins.

To ensure that the person you intend to receive any survivor benefits actually receives the benefits, it is critical that you are aware of how an "eligible spouse" is defined in the Plan and in the Pension Benefits Act and that you keep OPTrust informed of any changes to your spousal/common-law status. See the definition of "eligible spouse".

Make sure OPTrust knows who your spouse is and that you have submitted the necessary documents, particularly if the relationship is common-law.