Pension overview
The Ontario Teachers’ Pension Plan is a defined benefit pension plan. This means your pension is defined by a formula that takes into account your average salary and credit.
Providing you have at least two qualifying years, you are eligible for an unreduced pension when you reach age 65 or your 85 factor (age + qualifying years = 85 factor).
Your basic annual pension is: 2% X credit X best-five years’ average salary. Your basic pension is reduced at age 65 when you qualify for unreduced benefits from the Canada Pension Plan (CPP).
In addition to a retirement pension, the Teachers’ Pension Plan provides eligible members with benefits if they die, become disabled or permanently leave teaching before retirement age.
Contributions
As a member, you contribute toward your future pension. Contributions, which are matched by the Ontario government, are invested to achieve the long-term returns needed to pay inflation-protected pensions. For more information on what you contribute to the plan, see Contributions & Funding.
Vesting
Vesting means you are entitled to a future pension. Depending on when you started teaching, different portions of your pension benefits might become vested at different times.
In addition, some or all of your vested benefits will be locked in to provide you with an annual income starting no earlier than age 50. This means you cannot access your pension benefit, other than as an income payable for life, even if you leave teaching.
| Your pension vests: |
| • |
for credit accumulated after 1986, when you reach two qualifying years |
| • |
for credit accumulated before 1987, when you reach 10 qualifying years (benefits locked in after age 45) |
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