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 your pension. For more information on what you contribute to the plan, see Contributions.

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)

Designating a beneficiary
Your spouse is the automatic beneficiary of your pension. However, there is an opportunity to name who should be next in line for your benefit, after your spouse, if you die before retirement. Consult our Designating a Beneficiary section for more information.

Changes
We need to know if any of the following changes:

• Your name
• Your address
• Your spousal status
• Your e-mail address
• Your telephone number
• Your beneficiary designation

If you are registered for iAccess, our secure member website, you can change most of this information online at any time. To register, call us or fill out a registration form
(192 KB PDF). If you are not registered, complete one of these forms:

• Information Update (243 KB PDF)
• Designating a Beneficiary (211 KB PDF)

Buyback
Many teachers take temporary leaves of absence during their teaching careers. If you take an employer-approved absence, you can choose to continue contributing while on leave or later purchase credit for the time away. By buying credit, you will receive a higher pension and you may be able to retire sooner.   
    

Long-term income protection
Many teachers have long-term income protection (LTIP) agreements with their employers that provide coverage during a period of disability. If you have such an agreement and become disabled, you remain an active member of the plan while receiving LTIP.

For more information, see our Sick and Disability Benefits fact sheet (46 KB PDF). If you face a shortened life expectancy, you may be able to access your pension funds right away. Read our shortened life expectancy fact sheets (323 KB PDF) for more information.