OPTrust Select marks the first new jointly sponsored, defined benefit (DB) product offering for modest income earners in a generation
TORONTO, April 20, 2018 – OPTrust, one of Canada’s largest defined benefit pension plans today announced the launch of OPTrust Select, which will offer a secure retirement solution at a moderate cost for both employers and employees.
"Research shows that people with a defined benefit pension lead a more fulfilling retirement and in doing so, make greater economic contributions to their communities,” said Hugh O’Reilly, President and CEO of OPTrust. “OPTrust Select brings the advantages of our large scale and investment expertise to more Ontarians who otherwise wouldn’t have access to a DB plan and a secure retirement."
OPTrust Select will provide members with a steady stream of secure, reliable retirement income and includes the following features:
Members contribute 3% of earnings and employers match the contributions *see backgrounder for more information;
An annual pension accrual rate of 0.6% of earnings;
Earnings upgrades and cost of living increases, dependent on the Plan’s funded status and annual Board approval.
OPTrust Select is targeted to Ontario workplaces in the broader public sector, charitable and not-for-profit groups that do not have a workplace DB pension plan but may have a defined contribution (DC) plan, a group RRSP or no retirement savings arrangement at all.
OPTrust Select will also benefit the OPSEU Pension Plan by creating greater sustainability over the long term through the allocation of risk and operational costs over a broader membership base.
About OPTrust
With net assets of over $27 billion, OPTrust invests and manages one of Canada's largest pension funds and administers the OPSEU Pension Plan (including OPTrust Select), a defined benefit plan with 118,000 members. OPTrust was established to give plan members and the Government of Ontario an equal voice in the administration of the Plan and the investment of its assets through joint trusteeship. OPTrust is governed by a 10-member Board of Trustees, five of whom are appointed by OPSEU/SEFPO and five by the Government of Ontario.
Media Contact
Jason White Manager, Public Affairs OPTrust +1-416-201-1527 Email
Backgrounder
Provision | Description |
|---|---|
Contribution Rate | 3.0% employee and 3.0% employer (total 6%)* |
Benefit Formula | 0.6% x pensionable service x upgraded career average earnings |
Earnings Upgrades | Dependent on the funded status of the Plan and annual Board approval |
Early Retirement Benefits | None |
Bridge Benefits | None |
Normal Form of Pension | Life only with refund of contributions guarantee |
Inflation Protection | Dependent on the funded status of the Plan and annual Board approval |
* For years one and two, each new employer contributes an additional 0.2%
Membership Eligibility
Membership is limited to workplaces in the broader public service (BPS) and Ontario not-for-profit sector
Employers can participate in only one schedule of benefits at OPTrust
Employees can participate in only one schedule of benefits at any given time
Employers and employees participating in the pre-existing schedule of benefits of OPTrust are not eligible to join OPTrust Select.
For more information about OPTrust Select, please visit our Questions and Answers page.