Anatomy of a pension
November 27, 2012
Every month your pension is deposited, with deductions into your bank. Let's break down some of the potential line items on your deposit advice, and how they might affect your Teachers' pension. This illustration is based on a January deposit advice for a typical $40,000 pension and $15,000 survivor pension. Calculations are based on 2012 rates.
1. Retirement Pension
Your monthly pension now includes the 2013 inflation adjustment. To see the impact the inflation adjustment will have on your annual Teachers' retirement pension, log in to iAccess Web, visit the inflation page, and launch the "My Inflation Increase" presentation.
2. Survivor Pension
If you receive a Teachers' survivor pension, it will also be adjusted for inflation.
3. Income Tax
Canada Revenue Agency sets the income tax rates deducted from your pension. The rates used in 2013 can be adjusted right up until December 31, 2012. You can increase the amount of tax deducted each month from your pension in iAccess Web.
Your membership in Retired Teachers of Ontario is deducted once a year, in January. In years of low inflation, your RTO deduction may be larger than your inflation increase. As a result, your net monthly pension in January may be less than it was in December. Keep in mind though, that in February, when you don't have to pay the RTO fee your net monthly income will be more than it was at year-end 2012.
5. Medical Premium
Members have their choice of three optional plans for supplementary health coverage. One is offered by the Retired Teachers of Ontario through Johnson's, and the Ontario Teachers Insurance Plan (OTIP) offers the other two. Typically this is deducted monthly.
Any portion of your retirement or survivor pension based on credit earned after 2009 will be affected by conditional inflation protection. Learn more about conditional inflation protection.
Your Teachers' pension is integrated with the Canada Pension Plan (CPP), so we'll reduce your pension the month after you turn 65, regardless of whether or not you took CPP early or deferred it until you are older.
When you apply for a pension in iAccess Web , you can tell us your banking information. Should your account information change, you have to let us know in writing, with a signature.
If you would rather receive electronic pension deposit notices, log in to iAccess Web and click 'My Preferences.' Under 'Personal Correspondence' select 'Online in my iAccess Web account.'
We can wire your pension into a foreign account, but your deposit advice will always be printed in Canadian dollars.