When members move from OPSEU-represented positions to positions excluded from the OPSEU bargaining unit with the same employer and with no termination of employment, their pension plan membership changes and their pension service is transferred to the Public Service Pension Plan (PSPP) on a mandatory basis.
The OPSEU Pension Plan (the Plan) was recently amended to restore the amount of pension service certain members will establish in the Plan following two mandatory transfers between the Plan and the PSPP. For affected members who rejoin the Plan on a mandatory basis on or after January 1, 2024, the amendment restores the amount of pension service they earned during their prior membership in the Plan at no extra cost.
Impact on shortfall cost
Transfers of pension service from the PSPP into the Plan generally require the payment of a shortfall cost in order for equivalent pension service to be established in the Plan. This is because the pension benefit provided under the Plan is slightly greater than the pension benefit earned in the PSPP.
Prior to the amendment, the shortfall cost was based on the total pension service in the PSPP. Under the new rule, the shortfall cost will only be based on the pension service earned while a PSPP member. As a result, the shortfall cost will be lower.
For more information about multiple mandatory transfers, please read our fact sheet here.