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Life & Career Events

How Your Pension Works with CPP

Our plan works with the Canada Pension Plan (CPP), just like many defined benefit pension plans in Canada. Contributions to and benefits from Ontario Teachers' take into account your participation in CPP.

Old Age Security (OAS) has no impact on your Ontario Teachers' pension.

During your working years

You contribute to both your Ontario Teachers' pension and CPP.

Each year, CPP establishes a maximum amount of earnings (also known as the Year's Maximum Pensionable Earnings, or the YMPE). If you earn more than the YMPE, then you don't pay CPP contributions on the portion of your salary that's above the YMPE.

Your Ontario Teachers' contributions were reduced to reflect the contributions you made to the CPP during the same period.

Collecting a reduced CPP pension

Here are three things you need to know for when you turn 65:

  1. Your bridge benefit ends the month after your 65th birthday and you'll notice a decrease in your total pension income. Use our bridge benefit estimator to get an idea of how much your bridge benefit currently is. Keep in mind the estimate doesn't include future inflation increases.
  2. To see the exact current value of your bridge benefit, sign in to your account. We also include it on your Retired Member Statement (you receive this each year in spring once you retire).
  3. You'll likely be eligible to collect OAS benefits, which should help to offset the decrease to your pension.

Waiting until age 65 or later to collect CPP

If you wait until age 65 or later to begin collecting a CPP pension, and you've contributed to CPP for your entire career, you'll most likely not notice a significant difference in your pension income when your bridge benefit ends.

Here are three things you need to know:

  1. Your bridge benefit ends the month after your 65th birthday. But, your unreduced CPP pension will likely absorb the impact of the decrease.
  2. Use our bridge benefit estimator to get an idea of how much your bridge benefit currently is. Keep in mind the estimate doesn't include future inflation increases. To see the exact current value of your bridge benefit, sign in to your account. We also include it on your annual Retired Member Statement (you receive this each year in the spring once you retire).
  3. You'll be eligible to receive Old Age Security (OAS).

Questions?

If you have questions about CPP or OAS, contact them directly.