4 things you need to know about your pension
May 20, 2016
Whether your retirement is on the horizon or many years away, here are four things you should know about your pension today.
1. It’s adjusted after you turn 65
If you retire before your 65th birthday, you’ll receive what we call a bridge benefit. This benefit helps to supplement your income until you qualify for an unreduced pension from the Canada Pension Plan. Even if you collect a reduced CPP pension early, you’ll receive the benefit. The month after you turn 65, the benefit ends.
2. Your cost-of-living increases aren’t guaranteed
Annual cost-of-living increases on pension credit you earned after 2009 will depend on the plan’s funding status during your retirement. This helps us keep your plan sustainable. We can’t predict the future, but we do know you’ll still receive a solid pension based on how long you worked and how much you earned. Explore www.otpp.com/2016inflation to learn more about inflation protection and your pension.
3. The more credit you have, the higher your pension will be
Buying back eligible leaves, or working a few extra years are a couple of ways to increase your credit in the plan. There is no limit on how much credit you can earn, even after you qualify for an unreduced pension.
4. You have to apply for your pension to collect it
When the time comes and you’re set to retire, be sure to submit your resignation letter to your employer and apply for your pension in your Ontario Teachers’ online account.