What’s the deal with health insurance and your pension?

October 03, 2018

We answer your FAQs about supplementary medical coverage and your pension.

Q: My premiums are deducted directly from my pension, is Ontario Teachers’ involved in the administration of the insurance plans?

A: If you’ve opted for supplementary medical coverage from one of the three plans offered to members of our pension plan, then you’ll see premiums deducted directly from your pension. The three plans are:

  • Active Retired Members (ARM) Health Insurance Plan administered by the Ontario Teachers Insurance Plan (OTIP);
  • Retired Teachers Insurance Plan (RTIP) administered by the Ontario Teachers Insurance Plan (OTIP); and
  • The Retired Teachers of Ontario (RTO/ERO), administered by Johnson Inc.  

While your premiums are deducted from your pension, these plans are independent of Ontario Teachers’ and we have nothing to do with setting premium levels, determining coverage or the administration of these plans.

Contact the insurance providers directly with any questions or for information on coverage options.

Q: Why doesn’t Ontario Teachers’ provide medical and dental benefits for retired teachers?

A: Some employers provide health benefits to their retired employees. Ontario Teachers’ is not the former employer of teachers and can’t provide health benefits in the same way.

Q: What is the Ontario Health Premium and did I pay for it twice when I filed my tax return?

A: The Ontario Health Premium is a provincial tax that we are required to deduct from pensions paid to Ontario residents. We’ll only deduct this tax if your pension is more than $20,000 per year. The premium is included in your total tax deductions in box 22 of your T4A. While you are required to calculate the premium and enter the amount on your tax return, rest assured the tax is not deducted twice.