Pension Connection | December 2023

Posted: December 2023 Download the PDF Print this page Email the link

In this issue:

• Pensions to increase by 4.8%
• Cost of living adjustment for your pension
• Monthly pension you can rely on
• Celebrating Financial Literacy Month
• Our new Toronto office opens December 18
• OPTrust's one-year update on its climate change strategy
• Raising funds for food insecurity through OPTrust Cares

Pensions to increase by 4.8%

The pensions of OPTrust retirees will increase by 4.8%, starting January 1, 2024. The adjustment is an important feature of the Plan that helps your pension keep pace with inflation in retirement. For example, a retiree who started receiving a $20,000 pension in January 1995, would receive $36,332 from OPTrust in 2024. This is an 82% increase over a 29-year period.

The inflation rate is measured by the Consumer Price Index (CPI), reported by Statistics Canada. The CPI reflects the cost of a weighted basket of goods and services that are typically purchased by Canadian consumers every month. It is widely used as an indicator of the change in the general level of consumer prices and the rate of inflation.

Cost of living adjustment for your pension

What happens if I retired in 2023?

If you retired in 2023, your cost of living adjustment (COLA) is pro-rated for the length of time you received a pension. For example, if you retired in June 2023, your pro-rated COLA is calculated by the number of months you received a pension, divided by 12, times the 2024 increase (6 ÷ 12 x 4.8% = 2.4%).

In January 2024, your pension would increase by 2.4% to reflect the cost of living for six months. In following years the full COLA will be applied to your pension and will not be pro-rated.

How is the increase calculated?

OPTrust’s annual COLA is calculated based on the change in the average monthly Consumer Price Index (CPI) between October and September for the previous two years. Click here for more details.

Monthly pension you can rely on

Save the date! In the following chart you’ll find the pension pay dates for 2024. Pensions are paid each month, usually on the 26th – except for December and any month where the 26th falls on a weekend.

We deposit your pension directly into your account at your financial institution. If you want to change that account, we need to hear from you by the “cut-off date” shown below to get the change in place prior to that month’s payment.

Celebrating Financial Literacy Month

It's never too early to start thinking about your financial future. As part of Financial Literacy Month in November, OPTrust launched a three-part educational video series to help our Gen Z and younger millennial members better understand the value of their pension.

The videos covered what it means to be part of the OPSEU Pension Plan, how pension contributions work, and how your future self will thank you for investing in a secure lifetime pension for your retirement.

Watch the videos:

• You belong to one of Canada's largest pension funds
• Who doesn't love pay day?
• The price of little luxuries can go a long way

Our new Toronto office opens December 18

Guess what? We have relocated our Toronto office to a new floor within the same building. Starting December 18, we will open the doors to our new office on the 29^th floor of the 1 Adelaide building. This new space offers a modern and inviting environment for our members.

For employees, it better aligns with our flexible, hybrid work model. It also provides more collaboration spaces and new features such as an internal staircase, universal washrooms and a multi-faith room.

OPTrust's one-year update on its climate change strategy

Earlier this month, OPTrust released a one-year update on its 2022 enhanced climate change strategy. Over the past year we have developed a comprehensive approach for tracking climate-related data across our investments and setting targets to support our ambition to have a net-zero emissions portfolio by 2050.

"Our climate change strategy is designed with one purpose in mind: to protect our pension promise over the long term," said Peter Lindley, President and CEO.

The climate strategy directly supports our overall investment strategy to help ensure the longterm sustainability of the Plan, with a focus on building out the tools and capabilities to better understand, measure and manage climate risk and opportunity across all asset classes.

Visit OPTrust's climate change site.

Raising funds for food insecurity through OPTrust Cares

During the year, our employees raised more than $12,800 for The Stop Community Food Centre to help tackle the growing need and cost of providing programs and services that address food insecurity in Toronto. Many employees also volunteered their time at The Stop.

The funds were raised through OPTrust Cares, a grassroots charitable giving program. Each year, OPTrust Cares partners with a new charitable organization to help raise awareness and promote our values through fundraising events.