Your January Pension
January 24, 2019
It’s January. You’re excited to get your first pension payment of the year, with your inflation adjustment. But maybe the payment is a bit smaller than you expected. Before you panic, there are one-time deductions and adjustments that occur at the beginning of every year. Here are four things to watch for on your January pension:
- Membership fee deductions. If you’re a Retired Teachers of Ontario (RTO) member, the membership fee is around $60 (based on an annual pension of $48,000), and deducted once a year, in January. Members of ARM (Active Retired Members) will see their $50 membership fee taken off their January pension too.
- 2019 inflation adjustment. All pensions will receive the full 2.2% increase, including post-2009 credit.
- 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). Other than deducting premiums, we don’t administer your health insurance plan. If you have questions about your coverage or premiums, please contact your health insurance plan directly.
- Changes in your income tax deductions. The Canada Revenue Agency sets the income tax rates deducted from your pension. The rates used in 2019 can be adjusted right up until December 31, 2018. You can increase the amount of tax deducted each month from your pension by signing in to your Ontario Teachers’ online account.
Looking for your T4A? Find it in the Documents section of your online account.
If yes, then your bridge benefit will end and your pension will be adjusted in January. Why? We provide a bridge benefit, which is intended to supplement your retirement income until age 65 when you’re eligible for an unreduced pension from the Canada Pension Plan (CPP). If you’ve told us you’re collecting a CPP disability pension, your pension has already been adjusted.
Reminder! You’ll receive your Retired Member Statement in May. Sign in to your online account and ensure we have your current contact information.