When can you retire?
The normal retirement age under the OPSEU Pension Plan is 65. This is the age when you can retire with an unreduced pension if you do not qualify for unreduced early retirement options.
Currently, you may be eligible for an early unreduced immediate pension if you reach:
- Factor 90 – your age plus your pension service (in years and part years) total at least 90 years
- 60/20 – you are at least 60 years old and have 20 or more years of pension service.
If you qualify for one of the early retirement options, your pension will be calculated based on your pension service in the Plan on your termination date with no early-age reduction applied. The early unreduced retirement options include the CPP bridge pension which is payable until age 65.
You are eligible to retire with an early age-reduced pension if you do not qualify for other forms of early retirement and if you are over 55 but under 65 years old when you end your membership in the Plan. With this type of early retirement, your pension is calculated using the pension formula, including the CPP bridge up to age 65. Your lifetime pension and the CPP bridge benefit are subject to a reduction of 5% for each full year you are under age 65. Partial years are prorated on the basis of full months.
OPTrust members who receive a notice of layoff may be able to “bridge” to an unreduced pension. If you are laid off, please contact OPTrust.
Note that this type of bridging is different from the CPP bridge we discuss elsewhere in the booklet. For more information on bridging to an unreduced pension, see OPTrust’s fact sheet, Bridging to an unreduced pension or contact your employer, union representative or OPTrust.
To qualify for a disability pension you must be totally and permanently physically and/or mentally disabled, as defined in the Plan. To receive the disability pension you must apply to OPTrust, satisfy the above criteria and, if your application is approved, you must resign from your employment. You must provide medical evidence satisfactory to OPTrust, in order to receive the disability pension.
- If you have less than 10 years of pension service and membership you do not qualify for a disability pension. However, in some cases you may be eligible for a special disability refund under the Plan.
- If you have more than 10 years of pension service or continuous membership and your disability application is approved, your disability pension is payable immediately (i.e. the month following your termination of membership). Currently, the amount of your disability pension will be calculated using the pension formula with no early age-reduction applied.
If you start receiving your disability pension before age 65, it also includes a CPP bridge pension. As with all OPTrust pensions, the CPP bridge pension ends at age 65.
If your application for a special disability refund or disability pension is not approved, you are still entitled to a regular pension at 65, based on your pension service and salary. Taking an early age-reduced pension at age 55 is also an option.