Retroactive wage increases have been confirmed affecting various bargaining unit employees including Ontario Public Service Unified, Correctional Services, and LCBO among others.
What to expect
OPTrust has been working closely with employers to receive updated salary information and pension contributions for all members of the OPSEU Pension Plan impacted by the award. The timing of when OPTrust receives this information may differ by employer, resulting in varying timelines for members to see adjustments to their pension benefits.
Over 61,000 members and former members are impacted with up to three years of retroactive earnings/salary data to be updated. We kindly ask for your patience as we recalculate and process the volume of adjustments to pension benefits.
Next steps
Employers submit retroactive wage information and pension contributions to OPTrust.
OPTrust updates member records with retroactive salary increases and contributions, and recalculates pension benefits, where applicable.
There is nothing you need to do if you are still working. Your records will be updated once we receive and process the data and contributions from your employer.
There is nothing you need to do if you are still working. Your records will be updated once we receive and process the data and contributions from your employer.
If we have not received updated data from your employer, we will continue to process your request without delay, and will reach out to you directly if your pension benefit has changed due to the retroactive salary increases.
If we have not received updated data from your employer, we will continue to process your request without delay, and will reach out to you directly if your pension benefit has changed due to the retroactive salary increases.
For impacted members who have terminated their membership in the Plan, including those who have transferred their entitlements out of the Plan, we have begun to recalculate pension benefits in fall 2024. However, due to the timing of when data and contributions are expected from each employer, we expect the recalculation process to continue through 2025. We will reach out to you directly to inform you of any resulting changes to your pension benefit.
For impacted members who have terminated their membership in the Plan, including those who have transferred their entitlements out of the Plan, we have begun to recalculate pension benefits in fall 2024. However, due to the timing of when data and contributions are expected from each employer, we expect the recalculation process to continue through 2025. We will reach out to you directly to inform you of any resulting changes to your pension benefit.
For retired members who are impacted, we have begun to recalculate pensions starting in fall 2024. Once we have received complete information from employers, we will provide information regarding your updated monthly pension amount, as well as any retroactive lump sum amount payable. Due to the timing of when data and contributions are expected from each employer and the high volume of recalculations, this process will continue through 2025.
For retired members who are impacted, we have begun to recalculate pensions starting in fall 2024. Once we have received complete information from employers, we will provide information regarding your updated monthly pension amount, as well as any retroactive lump sum amount payable. Due to the timing of when data and contributions are expected from each employer and the high volume of recalculations, this process will continue through 2025.
For members impacted by retroactive wage awards where we have received complete data from employers, your 2024 APS will reflect the retroactive wage increases accordingly. For members impacted by retroactive wage awards where we have not yet received complete data and contributions from employers, your 2024 APS will not reflect retroactive wage increases. Your 2024 APS will include a note indicating if you fall within this group. The changes are expected to be reflected in your 2025 Annual Pension Statement, which will be issued in 2026.
For members impacted by retroactive wage awards where we have received complete data from employers, your 2024 APS will reflect the retroactive wage increases accordingly. For members impacted by retroactive wage awards where we have not yet received complete data and contributions from employers, your 2024 APS will not reflect retroactive wage increases. Your 2024 APS will include a note indicating if you fall within this group. The changes are expected to be reflected in your 2025 Annual Pension Statement, which will be issued in 2026.
Please contact your pay and benefits representative for questions regarding your retroactive salary payment.
Please contact your pay and benefits representative for questions regarding your retroactive salary payment.
If your contact information has changed since you retired or left the Plan, please reach out to OPTrust to ensure your information is up to date. We will be contacting impacted members.
If your contact information has changed since you retired or left the Plan, please reach out to OPTrust to ensure your information is up to date. We will be contacting impacted members.
Processing status (by group)
We will regularly update this page to provide progress updates on the processing of retroactive salary increases.
Employer group | Members who are still working | Members who have left the Plan* | Retired members |
|---|---|---|---|
Correctional Services | Complete | <50% complete | >85% complete |
LCBO | Complete | <50% complete | <50% complete |
OPS Unified | <50% complete | Awaiting data | Awaiting data |
Other employers | <50% complete | Awaiting data | Awaiting data |
* Includes members who have terminated, deferred their pension or have their entitlement out of the Plan.
The information in the table above provides general updates categorized by employer group, however, exceptions may apply.
Awaiting data – Our records have not been updated with the retroactive salary increase information we require. We are still working with employers to obtain complete information.
Complete – For members who are still working, our records have been updated. For members who have left the Plan or retired members, your benefit or pension recalculation has been completed.
Awaiting data – Our records have not been updated with the retroactive salary increase information we require. We are still working with employers to obtain complete information.
Complete – For members who are still working, our records have been updated. For members who have left the Plan or retired members, your benefit or pension recalculation has been completed.
Members (active and deferred): If we have not received complete retroactive salary increase information from your employer, your 2024 Annual Pension Statement (and online pension estimates for active members) will not reflect the changes. The changes are expected to be reflected in your 2025 Annual Pension Statement, which will be issued in 2026.
Retired members: If we have not received complete retroactive salary increase information from your former employer, your 2024 Retired Member Statement will not reflect the changes. Once we receive complete information, we will recalculate your monthly pension amount and you will receive an updated Pensioner Information Change Statement communicating the increase. As the Retired Member Statement is issued biennially, any changes are expected to be reflected in your 2026 Retired Member Statement, which will be issued in 2027.
Members (active and deferred): If we have not received complete retroactive salary increase information from your employer, your 2024 Annual Pension Statement (and online pension estimates for active members) will not reflect the changes. The changes are expected to be reflected in your 2025 Annual Pension Statement, which will be issued in 2026.
Retired members: If we have not received complete retroactive salary increase information from your former employer, your 2024 Retired Member Statement will not reflect the changes. Once we receive complete information, we will recalculate your monthly pension amount and you will receive an updated Pensioner Information Change Statement communicating the increase. As the Retired Member Statement is issued biennially, any changes are expected to be reflected in your 2026 Retired Member Statement, which will be issued in 2027.
FAQs
Read answers to frequently asked questions if you are a member or retiree affected by retroactive salary increases.
Members
No. Currently, online pension estimates cannot be calculated for members affected by retroactive wage increases. This is because in most cases OPTrust has not received new wage information and pension contributions from your employer. The timing for receiving this information varies by employer and will continue through 2025. As a result, OPTrust is unable to calculate a pension estimate until we process the updated information. Once we have updated your record with the revised information from your employer, you will be able to produce a pension estimate through your Online Services account.
No. Currently, online pension estimates cannot be calculated for members affected by retroactive wage increases. This is because in most cases OPTrust has not received new wage information and pension contributions from your employer. The timing for receiving this information varies by employer and will continue through 2025. As a result, OPTrust is unable to calculate a pension estimate until we process the updated information. Once we have updated your record with the revised information from your employer, you will be able to produce a pension estimate through your Online Services account.
If you have already received a Pension Options package (or Termination Options package) and have returned your election to have your entitlement transferred out of the Plan, we have begun to recalculate pension benefits starting in fall 2024 for this group, however, due to the timing of when data and contributions are expected from each employer, we expect the recalculation process to continue through 2025. Once completed, we will provide a Payment Options package to elect how your additional pension benefit is to be paid out. The payment options available will be detailed in your package, and depending on the amount, the funds may be transferred on a locked-in basis to your registered retirement savings plan (RRSP) or paid as cash subject to withholding taxes.
If you have already received a Pension Options package (or Termination Options package) and have not yet returned an election or have elected to defer your pension, we expect to start recalculating pension benefits in 2025 for this group. Your increased deferred pension will be reflected in your Annual Pension Statement once OPTrust has received and processed the data and contributions from your former employer.
If you have already received a Pension Options package (or Termination Options package) and have returned your election to have your entitlement transferred out of the Plan, we have begun to recalculate pension benefits starting in fall 2024 for this group, however, due to the timing of when data and contributions are expected from each employer, we expect the recalculation process to continue through 2025. Once completed, we will provide a Payment Options package to elect how your additional pension benefit is to be paid out. The payment options available will be detailed in your package, and depending on the amount, the funds may be transferred on a locked-in basis to your registered retirement savings plan (RRSP) or paid as cash subject to withholding taxes.
If you have already received a Pension Options package (or Termination Options package) and have not yet returned an election or have elected to defer your pension, we expect to start recalculating pension benefits in 2025 for this group. Your increased deferred pension will be reflected in your Annual Pension Statement once OPTrust has received and processed the data and contributions from your former employer.
Retired members
Generally speaking, your pension should be positively affected by your retroactive salary increase. However, the amount of your pension increase will depend on whether your salary increase impacted your best five-year average salary. The average salary is the average of your highest sequential 60 months of salary based on your annual full-time salary rate, not including overtime or bonuses. Below, we have provided an example to illustrate a member’s pension increase.
Note: The actual increase amount will vary depending on your five-year average salary and years of service.
Example:
Termination of employment occurred in 2023. The average Year’s Maximum Pensionable Earnings (YMPE) is $61,840.
Original five-year average salary = $78,000.00
Revised five-year average salary = $79,300.00
Years of service = 10
Lifetime pension = 2% x average salary x years of service less bridge benefit
Bridge benefit = 0.655% x [lesser of average YMPE or average salary] x years of service
The result of the increase for this retiree’s pension is $21.67 per month.
Generally speaking, your pension should be positively affected by your retroactive salary increase. However, the amount of your pension increase will depend on whether your salary increase impacted your best five-year average salary. The average salary is the average of your highest sequential 60 months of salary based on your annual full-time salary rate, not including overtime or bonuses. Below, we have provided an example to illustrate a member’s pension increase.
Note: The actual increase amount will vary depending on your five-year average salary and years of service.
Example:
Termination of employment occurred in 2023. The average Year’s Maximum Pensionable Earnings (YMPE) is $61,840.
Original five-year average salary = $78,000.00
Revised five-year average salary = $79,300.00
Years of service = 10
Lifetime pension = 2% x average salary x years of service less bridge benefit
Bridge benefit = 0.655% x [lesser of average YMPE or average salary] x years of service
The result of the increase for this retiree’s pension is $21.67 per month.
We have begun to recalculate pensions starting in fall 2024 for retired members where employers have submitted retroactive data and contributions. Due to the timing of when data and contributions are expected from each employer, we expect the recalculation process to continue through 2025. Once completed, we will provide information regarding your updated monthly pension amount, as well as any retroactive pension payment.
We have begun to recalculate pensions starting in fall 2024 for retired members where employers have submitted retroactive data and contributions. Due to the timing of when data and contributions are expected from each employer, we expect the recalculation process to continue through 2025. Once completed, we will provide information regarding your updated monthly pension amount, as well as any retroactive pension payment.
A retroactive pension payment is a one-time, lump sum payment that represents the difference between the pension payments you previously received, and your recalculated pension amounts for the period between your pension start date and the month prior to receiving the recalculated pension amount, plus interest. This retroactive pension payment will be paid at the same time as your first recalculated pension payment.
A retroactive pension payment is a one-time, lump sum payment that represents the difference between the pension payments you previously received, and your recalculated pension amounts for the period between your pension start date and the month prior to receiving the recalculated pension amount, plus interest. This retroactive pension payment will be paid at the same time as your first recalculated pension payment.
Like your regular pension payments, the amount of tax deducted is determined by the federal and provincial TD1 Personal Tax Credits Return forms that we have on file for you. You can change your claim amounts at any time by completing the form and submitting it to OPTrust through your Online Services account. Please note, if you did not complete these forms at retirement, the basic amounts were claimed.
Like your regular pension payments, the amount of tax deducted is determined by the federal and provincial TD1 Personal Tax Credits Return forms that we have on file for you. You can change your claim amounts at any time by completing the form and submitting it to OPTrust through your Online Services account. Please note, if you did not complete these forms at retirement, the basic amounts were claimed.
As with your regular pension payments, your retroactive pension payment, including the tax deducted, will be reported as income on your T4A in the year it is paid to you.
Please direct any questions or concerns to your accountant, financial advisor or the Canada Revenue Agency.
For members who would like a completed Statement of Qualifying Retroactive Lump-Sum Payment (T1198) form, which will provide a breakdown of the retroactive pension and interest amounts being paid to you for prior tax years, please submit your request through your Online Services account. The T1198 form may be included with your next tax return to request that the Canada Revenue Agency assess any tax you owe on the lump sum payment as if you had received the pension payments in each respective prior year.
As with your regular pension payments, your retroactive pension payment, including the tax deducted, will be reported as income on your T4A in the year it is paid to you.
Please direct any questions or concerns to your accountant, financial advisor or the Canada Revenue Agency.
For members who would like a completed Statement of Qualifying Retroactive Lump-Sum Payment (T1198) form, which will provide a breakdown of the retroactive pension and interest amounts being paid to you for prior tax years, please submit your request through your Online Services account. The T1198 form may be included with your next tax return to request that the Canada Revenue Agency assess any tax you owe on the lump sum payment as if you had received the pension payments in each respective prior year.
If you are a retired member receiving a pension from the OPSEU Pension Plan and you have become re-employed with an employer who contributes to the Plan you are subject to a re-employment earnings maximum.
Any retroactive salary payments related to pre-retirement employment will not be reported by your employer as re-employment earnings. Only retroactive earnings in respect of post-retirement employment will be reported by your employer as re-employment earnings, in the quarter that it is paid, and will be subject to your re-employment earnings maximum.
If you are a retired member receiving a pension from the OPSEU Pension Plan and you have become re-employed with an employer who contributes to the Plan you are subject to a re-employment earnings maximum.
Any retroactive salary payments related to pre-retirement employment will not be reported by your employer as re-employment earnings. Only retroactive earnings in respect of post-retirement employment will be reported by your employer as re-employment earnings, in the quarter that it is paid, and will be subject to your re-employment earnings maximum.
The maximum quarterly re-employment earnings, which is set by OPTrust when a member first retires, is determined by subtracting the retired member’s gross quarterly pension amount from three times their final monthly salary payable. Once your retroactive earnings have been updated by your employer, any adjustment to your final monthly salary payable will affect your maximum and be reported to you on a Pensioner Information Change Statement.
The maximum quarterly re-employment earnings, which is set by OPTrust when a member first retires, is determined by subtracting the retired member’s gross quarterly pension amount from three times their final monthly salary payable. Once your retroactive earnings have been updated by your employer, any adjustment to your final monthly salary payable will affect your maximum and be reported to you on a Pensioner Information Change Statement.