How does the Canada Pension Plan affect my OPTrust pension?
A. Your OPTrust pension is designed to provide you with a combined pension income – from both OPTrust and CPP – that equals approximately 2% of your average salary multiplied by your years of credited service in the OPSEU Pension Plan. In effect, if you retire before age 65, OPTrust pays the full 2% pension benefit. As an active member, your OPSEU Pension Plan contributions are reduced on a portion of your earnings that is also covered by CPP. This contribution “integration” is taken into account in the way your OPTrust pension is calculated starting at age 65. Starting at age 65, your 2% pension will be made up of an OPTrust portion plus a CPP portion. CPP provides retirement benefits to those who have contributed during their employment. The normal retirement age for CPP benefits is 65, however, you can apply for a reduced CPP pension as early as age 60, with a 6% per year reduction. Here is how CPP integration affects the amount of your OPTrust pension: Your basic OPTrust pension eq
