Understanding Ontario Teachers' Pension Plan

WHAT YOU NEED TO KNOW ABOUT YOUR PENSION PLAN

WHAT I NEED TO KNOW 1. Teachers 101 2. Getting set to retire 3. Collecting a pension 4. Survivor benefits

ONTARIO TEACHERS 101 Sponsored by the Ontario Teachers Federation and the Ontario government If you re certified in Ontario and work for one of our participating employers, even in most non-teaching roles, you re a member of our plan You can register for an Ontario Teachers online account that ll serve you throughout your career and retirement

ONTARIO TEACHERS 101 CONTRIBUTING TO YOUR PENSION The plan sponsors set the contribution rate Your contributions are deducted from your pay cheque The Ontario government and designated employers match your contributions A two-tiered formula is used to calculate contributions to the plan. Your contributions on salary under the Canada Pension Plan (CPP) limit are lower, and higher on any salary above the CPP limit.

ONTARIO TEACHERS 101 THE NUTS AND BOLTS It s a defined benefit plan Your pension is defined by a formula that takes into account your average salary and credit You re eligible for an unreduced pension when you reach age 65 or your 85 factor Age + qualifying years = 85 factor You earn a qualifying year when you teach for more than 10 days during a school year Your basic pension formula is: 2% x credit x best-five years average salary Your basic pension is adjusted at age 65 when you qualify for unreduced benefits from the CPP

ONTARIO TEACHERS 101 DESIGNATING A BENEFICIARY Your eligible spouse is the automatic beneficiary of your pension consider designating your children instead If you die before retirement and don t have an eligible spouse, next in line are your dependent children, then your designated beneficiaries, and then your estate

GETTING SET TO RETIRE Ensure all of your documents are uploaded to your Ontario Teachers online account Submit a resignation letter to your employer before your retirement date Decide whether you want supplementary medical coverage Apply for your pension online Tell us when you want to start your pension Review your personal information and make any necessary changes Ensure we have your personal email on your file, not your school board address Select your survivor pension level (automatically set to 60%)

COLLECTING A PENSION Pensions are deposited on the last business day of each month Each January your pension will be adjusted for inflation We calculate your inflation adjustment using the Consumer Price Index, the time you spent teaching, and the plan s funding status at that time Pension credit earned before 2010 will receive 100% of the inflation adjustment Pension credit earned after 2009 will depend on the plan s funding status Credit earned during 2010 to 2013 could receive between 50 and 100% of the inflation adjustment Credit earned after 2013 could receive 0 to 100% of the inflation adjustment

SURVIVOR BENEFITS If you don t have an eligible spouse when you retire, you ll automatically receive the 10-year pension guarantee (also referred to as the G10 ) If you have an eligible spouse, you can opt for the G10 for a nominal monthly premium The G10 entitles your survivor (eligible spouse or dependent children) to the balance of your CPP-adjusted Ontario Teachers pension for the first 10 years of your retirement If you had an eligible spouse at the time of your retirement and you die before your spouse, he or she will receive your survivor pension (you would have selected the percentage of your CPP-adjusted Ontario Teachers pension when you retired) If you had opted for the G10, your survivor pension kicks in once the 10-year pension guarantee period has expired