Your January pension
December 12, 2016
The hustle and bustle of the holidays will be over, but your first pension payment of the new year isn’t exactly business as usual. Here are four things to watch for:
The Retired Teachers of Ontario (RTO) membership fee deduction - if you’re an RTO member, the fee is around $60 (based on an annual pension of $50,000), and deducted once a year, in January.
2017 inflation adjustment - in 2017, the base adjustment rate is 1.3%. Visit Inflation 2017 to learn more.
Adjustments to health insurance premiums - if you subscribe to a health insurance plan through the RTO (Johnson’s) or Ontario Teachers Insurance Plan (OTIP), premiums are often adjusted in December or January (premiums are deducted each month).
Changes in your income tax deductions - the Canada Revenue Agency sets the income tax rates deducted from your pension. The rates used in 2017 can be adjusted right up until Dec. 31, 2016.
Tip! You can increase the amount of tax deducted each month from your pension by signing in to your Ontario Teachers’ online account.
Did you turn 65 in December? If yes, then your bridge benefit has ended and your Ontario Teachers’ pension will be reduced in January to reflect this integration with the Canada Pension Plan (CPP). If you’re collecting a CPP disability pension then this reduction has already been applied.
Prefer paperless? Sign in to your Ontario Teachers’ online account and view your deposit advices under Your Pension.