Bringing OPSEU Service into the PSPP
Effective March 13, 2000
When an employee who has past service with the OPSEU Pension Plan (OPSEU Plan) joins the Public Service Pension Plan (PSPP), the service can be moved to the PSPP in one of two ways:
1. Mandatory transfer (no break in employment)
If an employee terminates membership in the OPSEU Plan and joins the PSPP by virtue of a promotion or job change, but does not terminate his/her employment, the transfer is considered mandatory under section 36 of the PSPP. The transfer is processed between the two plans upon receipt of the OPSEU Plan termination document and the PSPP enrolment forms provided by the employer.
We are in the process of updating our enrolment form to request this information. In the interim, please note on the enrolment form when a member joins the PSPP due to a mandatory transfer.
2. Apply to purchase the deferred benefit (break in employment)
If an employee terminates membership in the OPSEU Plan and his/her employment, and subsequently assumes a position that requires membership in the PSPP, he/she may be able to purchase the OPSEU Plan pension credit under section 11 of the PSPP. The purchase cost and the form to be completed will depend on which termination option the member elected from the OPSEU Plan.
a) Deferred Pension: Because the funds are still in the OPSEU Plan, this purchase is actually treated as a transfer. We will obtain the details from the OPSEU Pension Trust and calculate a transfer value according to the MOPPS agreement.
- To be completed: Application to Purchase Pension Credit (OPB 1043) OR Application to Transfer Pension Credit (OPB 1058). Either form is acceptable.
b) Commuted Value or a Refund of Contributions: Because the funds are no longer in the OPSEU Plan, we will calculate the member's cost to purchase the pension credit.
- To be completed: Application to Purchase Pension Credit (OPB 1043)
It is important to distinguish between a simple change of plan affiliation, which results in a mandatory transfer, and a change in plan membership following a break in employment for which the member must apply to purchase the pension credit.
If you have any questions, please contact us.