What You Need to Know About Re-employment Earnings Limits

If you’re collecting a pension from the Public Service Pension Plan (PSPP) and considering continuing or returning to work for a PSPP employer, it’s important to understand how your earnings might affect your pension.

What Is the Re-employment Earnings Limit?

When you commence a PSPP pension and continue or return to work with a PSPP employer and don’t rejoin the PSPP, you have a limit to how much you can earn in a calendar quarter (referred to as the quarterly earnings limit, over three‑month periods).

How Is the Limit Calculated?

Formula:

Example:

• Final monthly salary: $5,000
• Monthly pension: $3,000
• Difference: $2,000
• Quarterly limit: $2,000 × 3 = $6,000

If you earn more than your quarterly earnings limit in a quarter from a PSPP employer, you will be required to repay the amount of the overpayment to OPB. Using the example above: if your quarterly limit is $6,000, and during any three‑month quarter of the year you earn $7,000, you will be contacted by the Ontario Pension Board with a request for repayment of the amount of $1,000 for the overpayment.

For more information on the re-employment earnings limit overpayment process speak with your employer’s human resources representative.

Note: Special rules apply to those above the maximum pension age.

What You Need to Do

• If you work for any PSPP employer and do not rejoin the PSPP, you must ensure that your employer is aware that you are receiving a PSPP pension, and that they report your earnings promptly to OPB.
• If you’re paid through invoices or contracts, you will need to submit proof of payment.
• No reporting is necessary for the period after July 1, 2025, if you are over maximum pension age (please see below).
• Remember to track your reemployment earnings each quarter to avoid going over your limit.

Special Update for Members Over the Maximum Pension Age (Age 71+)

Starting July 1, 2025, the earnings limit no longer applies to members who have reached the maximum age for contributing to a pension plan at the end of the year they turn 71:

• If you turned or will turn 71 in 2025 or later, the earnings limit no longer applies as of December 1 of that year, when you are required to start your pension.
• If you turned 71 before January 1, 2025, and had to start your pension in a previous year, the earnings limit stopped applying on July 1, 2025.

What this means:

You can work for a PSPP employer after reaching age 71 without worrying about your quarterly limit or overpayments.

Quarterly Re-employment Earnings Tracker Checklist:

• Make sure you report your quarterly earnings!
• Mark your calendar: Set a reminder to review your earnings at the end of each quarter.
• Know your limit: Review your quarterly earnings limit so you know what to stay under. If you’re not sure, contact OPB’s Client Care Centre.
• Ensure your employer is aware of your PSPP pension and is reporting your earnings promptly.
• Keep your pay stubs: Save copies or screenshots of your earnings for easy reference.
• Use a simple spreadsheet or app: Track your hours and pay to avoid surprises.
• Reach out if unsure: Your employer’s HR representative and OPB’s Client Care Centre can help.

Need Help?

If you’re unsure how these rules apply to your situation, contact us at:

Phone: 416‑364‑5035 or 1‑800‑668‑6203 (toll‑free) | Email: clientservice@opb.ca