This page describes the options available to members who are less than age 55 at termination.

Deferred Pension option

A deferred pension is a pension a member can collect at a later date, provided they leave pension credit in the PSPP when they end their membership. Members can start collecting a deferred pension as early as age 55. If they start collecting their pension before age 65, however, it will be reduced to reflect the fact that they are starting it early and, therefore, are likely to collect it longer.

A deferred member also has the option to transfer the commuted value of the deferred pension on a locked-in basis before age 55. The deferred member must contact OPB directly for details.

Unless the member's pension is consider a small pension, the member will be eligible for a deferred pension.

Deferred pension inflation protection

Cost of living adjustments accumulate from the month after termination to January 1stof the year of pension commencement.

For further details click on Inflation Protection.


See Transfers out of the PSPP section for more information.

Commuted Value option

If the member is under age 55, they can - subject to ITA limits - transfer the commuted value of deferred pension to:

  • a locked-in Retirement Account (LIRA)
  • a Life Income Fund (LIF)
  • another employer's registered pension plan that accepts transfers
  • a lifetime annuity purchased from an insurance company.

Who is eligible for this option

To be eligible for this Commuted Value option, members must

  • be under age 55 and
  • not be eligible for an immediate unreduced pension at the date of termination.

Transfers subject to Provincial and Federal requirements

Transfers are subject to both

  • the Pension Benefits Act (Ontario),
  • the Income Tax Act (Canada), and
  • a reciprocal transfer agreement, if applicable.

Refund of excess contributions (50% Rule)

The refund of excess contributions refunds a member's contributions plus interest for service from January 1, 1987 to the Member's termination date that exceed 50% of the Commuted Value of the pension for this period.

Forms of payment

To receive this refund, members can choose either of these forms of payment:

  • cash, less the required withholding tax
  • transfer to a personal RRSP (not Locked-In), subject to Income Tax limits.

Transferring pension credit to other plans

This section describes members' option of transferring pension credits out of the PSPP and into a new plan. It includes these topics:

Two categories of transfer agreements

Just as members may transfer pension credit into the PSPP, they may also transfer pension credit out of the PSPP and into the new plan under two categories of transfer agreements:

  • The Major Ontario Pension Plans (MOPPS) multilateral agreement, and
  • The bilateral Reciprocal Transfer Agreement (RTA)

The credit transferred out of the PSPP is then added to the pension credit earned in the new plan to increase the overall value of the pension in the new plan.


A transfer is possible if the following conditions are met:

  • There is a transfer agreement in place between the PSPP and the receiving plan.
  • The member has pension credit in the PSPP.
  • The member qualifies and applies for a transfer within the required time limits.

Transfer process

The table below describes the process for transferring pension credit to a participating plan under a MOPPS agreement or RTA.

Stage Description
1 The member contacts the new plan administrator or the employer to request Appendix A.
2 The new plan administrator or employer sends Appendix A to member.
3 The member completes, signs, dates and returns Appendix A to the employer as soon as possible.
4 The employer forwards a copy of Appendix A to the OPB.
5 The OPB sends transfer data to the new plan administrator.
6 The new plan administrator
  • calculates the cost, and
  • sends the member an "Appendix B - Request for Transfer" form outlining the costs and value of the pension credit.
7 The member completes and returns Appendix B to new employer or new plan administrator
  • authorizing the transfer, or
  • declining the transfer.
8 If member authorizes the transfer, the new employer or new plan administrator authorizes Appendix B and sends copy to OPB.
9 OPB pays transfer value to new plan administrator.

Member responsibility

When transferring pension credit out of the PSPP, whether under a MOPPS agreement or under an RTA, the member must

  • initiate the transfer by contacting the new plan or employer for Appendix A to start the process, and
  • ensure that all documents meet the required deadlines.

MOPPS eligibility

A member may be eligible to transfer pension credit if all of the following conditions are met:

  • Membership in the PSPP was terminated and the pension credit was left in that plan.
  • The member started working for a new employer within 18 months from the date of leaving the former employer.
  • The member joined the new plan within 6 months of becoming eligible to do so.
  • The administrator of the new plan received the Appendix A from the member within 6 months from the date the member joined the new plan.

RTA eligibility

A member may be eligible to transfer pension credit to an RTA if all of the following conditions are met:

  • Membership in a participating plan was terminated and the pension credit was left in that plan.
  • The member started working for a new employer with 3 months from the date of leaving the former employer.
  • The new plan receives an application to transfer pension credit from the PSPP within 12 months from the date of joining the new plan.


  • These limits apply to current RTA participants only (except Quebec and the Federal Government). Contact OPB for Quebec and Federal Government RTA transfers.
  • The time limits and requirements for each RTA depend upon the terms of the specific agreement and may be changed or cancelled at any time. For current information, the member should contact the administrator of the new plan.

For more information