Congratulations! As a member of the Ontario Public Service Employees Union (OPSEU) Pension Plan (the Plan), you are part of one of Canada’s leading pension plans.
The purpose of the Plan is to provide retirement income (a pension) for you and your eligible survivors.
Joint governance
The OPSEU Pension Plan is the result of years of discussion between the Government of Ontario and OPSEU to create a pension plan in which members have a say. As the plan sponsors, the Government and OPSEU each appoint five trustees to the Board of Trustees. The Board is the legal plan administrator under the Pension Benefits Act and is responsible for the administration of the Plan and the administration and investment of the plan’s assets.
The Plan is legally a jointly sponsored pension plan (JSPP) under the Pension Benefits Act and is subject to the rules that apply to JSPPs. Under a JSPP, the members and employers share in the governance of the Plan.
A JSPP is designed to give the administrator the flexibility it needs to make the Plan sustainable for the long term.
How does my pension fit with my retirement plan?
Most financial planners will tell you that you need approximately 60 to 80 per cent of your pre-retirement income to maintain your lifestyle when you retire. Your retirement income will typically include your workplace pension, the Canada Pension Plan (CPP), Old Age Security (OAS) and your personal savings.
Retiring
The normal retirement age in the Plan is 65, but there are early retirement options for long-serving members based on pension service and age.
What will I get when I retire?
Your pension is calculated based on a formula which takes into account your pension service and salary.
Your pension is paid for your lifetime and it is adjusted annually for inflation.
If you retire before age 65, you will receive a temporary bridge benefit that is payable until you turn 65. For more information about early retirement and the temporary bridge benefit, please refer to Your Pension and Turning Age 65.
The chart below shows some typical examples of the unreduced pension amounts that would be paid to members with different years of pension service and salary ranges who retire in 2023.
| Highest Average Salary |
Years of Pension Service |
Pension Before Age 65 with Bridge |
Pension After Age 65 without Bridge |
|---|---|---|---|
| $45,000 | 20 | $18,000 | $12,100 |
| 25 | $22,500 | $15,100 | |
| 30 | $27,000 | $18,200 | |
| $60,000 | 20 | $24,000 | $16,100 |
| 25 | $30,000 | $20,200 | |
| 30 | $36,000 | $24,200 | |
| $75,000 | 20 | $30,000 | $21,900 |
| 25 | $37,500 | $27,400 | |
| 30 | $45,000 | $32,800 |
All numbers have been rounded to the nearest $100.
If you leave your employment before retirement
If you are under the age of 55, you can:
Defer your pension until you are eligible to retire and start receiving your pension.
Transfer the value of your pension to your new employer’s pension plan (if the plan permits).
Transfer the value of your pension to a locked-in retirement account (LIRA), a life income fund (LIF) or use it to purchase an annuity from an insurance company.
If you transfer the value of your pension out of the Plan, no further benefits will be payable to you or your survivors.
For more information about options when you terminate employment, please refer to Pension Options When Your Employment Ends.
Survivor benefits
When you die, benefits may be payable to your survivors.
Death before retirement: If eligible, your spouse is entitled to a lump sum amount equal to the value of your pension which may also be taken as an immediate or future lifetime pension. If you do not have a spouse, your eligible children will receive an immediate pension equal to 60 per cent of your lifetime pension divided equally among them for as long as they qualify, or a lump sum value of the survivor pension. If you do not have a spouse or eligible children, a lump sum value of your pension is payable to your designated beneficiary(s), or to your estate if you do not have a designated beneficiary.
Death after retirement: Your spouse receives a survivor pension equal to 60 per cent of your pension, payable for their lifetime. If you do not have a spouse, your eligible children will receive a survivor pension that is equal to 60 per cent of your pension, divided equally among them for as long as they qualify. If you do not have a spouse or eligible children, a residual balance may be payable to your designated beneficiary(s), or to your estate if you do not have a designated beneficiary.
Additional details regarding death benefits can be found in Survivor Benefits Before Retirement or Survivor Benefits After Retirement.
Annual Pension Statement
All active and deferred members receive a personalized Annual Pension Statement by June 30 every year.
The statement provides you with important information about how your pension has grown in the previous year and provides future estimates so you can plan for your retirement.
Changes to the Plan
The Member Handbook summarizes the current plan provisions as of April 1, 2023. The plan terms can be changed if the plan sponsors agree to the change and the change complies with the plan terms and applicable legislation. OPTrust will provide notice of any plan amendments in accordance with the notice requirements in the Pension Benefits Act.
