Questions and answers about post-retirement benefits for OPSEU members in the OPSEU Pension Trust (OPTrust) pension plan.
Background
Further to the QandA posted on November 17, 2016, there has been a new development that enhanced the post-retirement benefits settlement that was previously negotiated.
After the settlement, OPSEU heard from you, our members, with feedback. As stated in the announcement on December 21, 2016 there was a significant number of members that were left out of the previous settlement: those who would not have 10 years of pensionable credit before January 1, 2017, and who would likely retire before they had the newly required 20 years’ credit in the pension plan. Because of this, OPSEU went back to the employer.
With your support OPSEU was able to negotiate an enhanced agreement and those in this group may now be able to access benefits; please read on to determine if you will be eligible.
1. Who does this new enhancement apply to?
The only members who will be impacted by this new agreement are those who:
- Currently contribute to the OPSEU Pension Trust;
- Did not have 10 years of service in the pension plan prior to January 1, 2017; and
- Will not have accrued 20 years of service prior to retirement.
If you are part of this group, please read on. If you are not part of this group, then the enhancement will not apply to you.
2. Will I qualify for benefits when I retire?
If you did not meet the eligibility critera under the settlement announced in November 2017, and you are part of the group mentioned above (Q1), under the new agreement you will now be able to access post-retirement benefits, if you meet the following eligibility criteria:
- Hired prior to January 1, 2017;
- Retire to an immediate unreduced pension;
- Have at least 10 years of pension credit;
- Some of your pension credit was earned after January 1, 2017; and,
- Do not have 20 years of pension credit.
3. What is the enhancement to the prior settlement?
If you meet the eligibility criteria listed in Question 2 you will now have the option of enrolling in the retiree focused plan (also known as Plan B). Under the previously announced settlement, you would not have been able to access any of the post-retirement benefits offered by the Government of Ontario. Under the enhancement, you can now choose to enroll in the retiree focused plan (Plan B). If you choose to enroll, you will pay for the full cost of the premiums.
4. How much will the premiums cost?
The exact cost is not known at this time, however in 2017 it is estimated to be approximately $900 per year for single coverage and $1,700 per year for family coverage. Please note this is an approximation in 2017, the actual cost will be given at retirement and it is expected that the cost will be adjusted every year.
5. What benefits will I have in retirement?
If you choose to enrol in Plan and would like information about what is covered please see the information here .
6. Can I choose to enroll in Plan A?
No, unfortunately that is not available if you are eligible under the criteria listed in Question 2. Your only option at retirement is to choose to enroll in Plan B, or choose to not enroll in the employer offered benefits.
7. Can I enroll the optional enhancements that are available to Plan B members?
Yes, if you elect to enroll in the optional upgrades to Plan B, you will be allowed to access these benefits. For information about the enhancements please click here.
8. Where can I get more information?
If you want to review the original Memorandum of Settlement agreed to on November 11, 2016 click here.
If you want to review the announcement published December 21, 2016 regarding the enhancement to the original agreement click here.
If you would like to know details regarding Plan A (legacy plan) or Plan B (retiree focused plan) click here.
If you want to review the original QandA published on November 17, 2016 click here.
If you still have questions that are not covered here, or in the other materials listed above, please send an email to the OPSEU Pension and Benefits Unit at [email protected].