OPB News for Members

With every contribution, you’re building up your future pension and financial security – but how much do you actually know about the valuable benefits you’re on track to receive? Ontario Pension Board is here to help make your pension easier to understand.

An expanding variety of sessions are always available to meet your needs. For example, our new ‘View your future pension and more’ webinar is designed to help you hone in and better understand the most important information contained in your Annual Pension Statement.

Other options include ‘6 Things to Know about Your Pension’, which offers a jargon-free and contemporary take on pension basics. Late career? Check out our Pre-retirement Overview to learn how much pension you’d receive in different scenarios, how inflation protection works, your options for staying employed while receiving your pension, and more! All sessions include the opportunity for you to ask questions as well, so don’t delay – start learning about your future pension today!

To attend a session, simply visit OPB.ca, log in to your e-services account and reserve your spot. You can access your e-services account by clicking ‘Login’ in the upper right corner of our home page and selecting 'Member Login'.

We look forward to seeing you there!

Membership in a Defined Benefit (DB) pension plan such as the PSPP brings with it several advantages which can help to achieve long-term financial stability and pave the way for a secure, worry-free retirement. Unlike a Defined Contribution (DC) plan, DB plans provide a predictable, lifelong income based on a formula that considers your salary history and years of service. Here are some of the valuable benefits of the PSPP.

1. Guaranteed income for life: no matter how long you live, you will receive a fixed, reliable income throughout your retirement.
2. Protection from market volatility: unlike DC plans, which are impacted by market performance and investment choices, members of the PSPP are shielded from market fluctuations and volatility which affect Plan returns.
3. Protection from inflation: your defined benefit pension is protected against inflation to help you maintain your purchasing power throughout retirement through a cost of living adjustment (COLA).
4. Spousal and survivor benefits: the PSPP provides options for you to designate the beneficiaries of your pension, as well as for insured medical benefits (if eligible).
5. Early retirement and disability benefits: if your age and pension credit equals 90 points (Factor 90), or if you're at least 60 years old and have 20 years or more of pension credit (60/20), you have the option of retiring early with an unreduced pension. In the unfortunate event you are no longer able to work due to a permanent disability, you may also qualify for a disability pension.

These and other features make the PSPP a valuable part of your overall retirement plan.

Retirement is one of the most significant milestones of your life, and effective planning can ensure you make a smooth transition from the working world to what can be some of your most enjoyable years. It’s never too early to speak to a Client Service Advisor about your options for retirement - here are some key things to consider.

2 years before retirement

• Review any savings, investments and retirement accounts, like your RRSP and TFSA, and calculate your retirement income, which includes CPP, OAP and, of course, your PSPP pension. You may also be eligible for the Guaranteed Income Supplement (GIS). Using these can help you develop a post-retirement budget.
• Pay down as much debt as possible and particularly look at reducing or paying off your mortgage in its entirety, if feasible.
• What does your retirement lifestyle look like? You may wish to downsize, or even relocate, so begin exploring these different options. This is also a great time to identify new opportunities your retirement can provide, such as travel and volunteering.
• Assess your potential insurance needs and whether you may have any coverage through your employer. Did you know that PSPP members have access to post-retirement benefits, including optional cost effective out of country insurance? ‘My Retirement Planner’, also available in e-services, can help you understand your sources of expected retirement income before and after tax as well as compare your current expenses to your expected expenses in retirement.
• For any questions or decisions regarding tax or property arrangements in retirement, consider consulting a lawyer about potential impacts before moving ahead.

1 year before retirement

• Decide when to begin taking CPP payments (before your turn 65 or after).
• Gain an understanding of your RRSP (and other accounts, e.g. the Registered Retirement Income Fund) withdrawal rules when receiving your pension.
• Review and finalize your retirement budget. Be sure to take into account any unexpected costs which may arise, as well as priority spending changes - like travelling - and inflation.
• Check your eligibility for insured medical benefits through the PSPP. For information on this, please review the ‘Insured Benefits in Retirement for Members of the PSPP’ booklet, available on the OPB website.
• You may wish to set a tentative retirement date. Consider how long you wish to keep working and how this date will affect your PSPP pension - for instance, if you are retiring early, or at normal retirement age (i.e., 65). Remember, you must begin receiving your PSPP pension by December of the year you turn 71.
• Don’t forget to sign up for one of our Retirement Planning Advisory Workshops through e-services or book a 1-on-1 with one of our Client Service Advisors.

6 months before retirement

• You should apply to start your pension 3 to 6 months ahead of the day you plan to retire. You can initiate your retirement online in e-services, but you should let your employer know that you have initiated the retirement process as well.
• Consider whether you are planning to receive government benefits and application timelines for applying for CPP and OAS, and GIS (if you qualify). You should also review your investments to align with your retirement needs.
• OPB deposits pension payments on the 22nd of each month. To minimize the gap between when you stop receiving your employment earnings and receive your first pension deposit, choose a retirement date as close as possible to the end of the month.
• Last but not least: celebrate! Retirement is a crucial life event, so take some time to reflect on accomplishments throughout your career as you settle into this new and exciting phase.

“As retirement draws near, it’s important to ensure you’re financially prepared. We’re here to help you make a smooth transition, so don’t forget to book a one-on-one session with one of our Client Service Advisors so we can explore your options.” – Matthew Siwiec, Client Service Advisor

At OPB, inclusion and diversity are core values of who we are and how we operate. As part of OPB’s commitment to inclusiveness in our interactions with members and stakeholders, we’re expanding the gender options available in our systems.

These changes are a way for OPB to advance the support we provide to our diverse client communities, by ensuring our communication system and practices are respectful of a range of gender identities and titles.

What’s new?

Effective immediately, you will be able to request an update on your file to reflect your gender identity. Options are now expanded to include:

• Female
• Male
• Non-binary
• Undisclosed
• Gender non-conforming

To support the expanded gender options, we’ve also added Mx. and Ind. (Individual) to our title options:

• Dr.
• JP
• Ms.
• Miss
• Mrs.
• Mr.
• Rev.
• Sister
• Mx. Ind.

How to make a change

If you would like to update the gender or title information we have on file for you, we invite you to contact OPB. We do not require any documentation from you to make updates. Please have your OPB client number handy and our Client Care Centre will be able to assist you. If you are satisfied with your listed gender and title, there is no need to contact OPB.

Have a question?

If you have any questions, please contact us at 416-364-5035 or toll-free at 1-800-668-6203, or email us at clientservice@opb.ca.