Understanding Your Retirement Income

The Canada Pension Plan (CPP) and Old Age Security (OAS) complement your Ontario Teachers' pension. Here's what you need to know about these components of your retirement income.

CPP is integrated with your Ontario Teachers' pension

We provide a bridge benefit over and above your lifetime pension amount until you reach age 65. The month after you turn 65, or earlier if you start a CPP disability pension, the bridge benefit ends. We'll adjust your pension at that time by an amount that's likely less than your unreduced CPP pension. This amount is based on a formula, not what you will receive from CPP.

CPP adjustment factor (0.45%) x Years of service in Ontario Teachers' during which you also contributed to CPP x Year's Maximum Pensionable Earnings average or best-five salary (if less) = CPP adjustment

OAS is not integrated with your Ontario Teachers' pension

You can begin receiving OAS payments at age 65. Full OAS benefits are usually available if you've lived in Canada for at least 40 years after age 18. Partial benefits may be available if you haven't met residency requirements.

Most pensioners qualify for the maximum pension from OAS (for 2019, approximately $600/month). The federal government begins clawing back OAS when total net income reaches about $75,900.

If you go on a CPP disability pension, make sure to contact us and let us know immediately, so we can make the necessary adjustments to your pension.