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Update: Changes to Post-Retirement Insured Benefits

posting date Posted: March 16, 2017

TORONTO, March 16, 2017 – In November 2016, the Government of Ontario announced changes to its post-retirement insured benefits (PRB) provided to eligible retirees of the OPSEU Pension Plan.  The changes that came into effect on January 1, 2017 include the introduction of a 50/50 cost sharing model for the existing PRB plan (the Legacy Plan) and a new alternative PRB plan (the Retiree-Focused Plan), valued at half the cost of the Legacy Plan.  These changes will impact eligible members who retire and start their pension on or after January 1, 2017, but will not affect eligible retirees who started receiving their pension before that date.
 
The following chart summarizes the eligibility criteria for participation in a PRB plan, applicable PRB plan options and payment terms for premiums for all members who retire on or after January 1, 2017.

Eligibility Criteria
PRB Plan and Premiums

Hired before             
January 1, 2017

Minimum 10 years of pension service* before January 1, 2017


LEGACY PLAN
50% Government paid
50% Retiree paid   

OR

RETIREE-FOCUSED PLAN
100% Government paid
(Default option)


Hired before         
January 1, 2017         

with less than 10 years of pension service before January 1, 2017


Minimum 20 years of pension service**

AND

Retire from active service to an immediate unreduced pension

Hired before
January 1, 2017               

with less than 10 years of pension service before January 1, 2017


Minimum 10 years of pension service*

AND

Retire from active service to an immediate unreduced pension

RETIREE-FOCUSED PLAN ONLY
(No access to Legacy Plan)

100% Retiree paid


Enrolment is optional  

Hired on or after
January 1, 2017

Minimum 20 years of pension service**

AND

Retire from active service to an immediate unreduced pension

* or 10 years continuous employment with some pension service in each of the 10 years
** or 20 years continuous employment with some pension service in each of the 20 years


Eligible retirees who have an option of both PRB plans at retirement may switch from the PRB plan they elect at retirement to the other PRB plan in December of any year for coverage starting the following January.  However, once they cease coverage in the Legacy Plan, they cannot re-enrol in that plan.

Eligible retirees  who only have the option of participating in the Retiree-Focused Plan at retirement on condition of paying 100% of the premiums may elect to cease coverage in that plan at any time, but if they do, they cannot re-enrol in that plan.

Optional Upgrade Packages

The Government of Ontario also announced that Optional Upgrade Packages will be made available later in 2017 to all members who are eligible for PRBs, including eligible retirees who started their pension before January 1, 2017. These packages will include bundled features such as emergency out-of- country travel medical assistance and catastrophic drug coverage. Note that the catastrophic drug coverage will be applicable to Legacy Plan participants only. Premiums will be paid 100 per cent by retirees who elect to enrol.

Information regarding the Optional Upgrade Packages will be posted on optrust.com as further details become available.