Adjustments and deductions to your pension
December 17, 2020
As we wind up 2020 and anticipate the start of a new year, here’s a reminder of what to expect with your next two pension payments.
The following adjustments and annual deductions are slated for December and January. Your deposit amount in these months is less than what you can expect the rest of the year as a result.
Pension pay days
While Canada Pension Plan (CPP) and Old Age Security (OAS) payments are deposited a bit early in December, your Ontario Teachers’ pension will still be deposited on the last business day of the month (December 31).
RTOERO (formerly known as the Retired Teachers of Ontario) membership fee deduction
If you’re an RTOERO member, the annual membership fee is deducted in January. Contact the RTOERO directly with questions about the fee.
Adjustments to health insurance premiums
If you subscribe to a health insurance plan through the RTOERO (Johnson’s) or Ontario Teachers’ Insurance Plan (OTIP), rates are often adjusted in December or January. Other than deducting premiums each month, we don’t administer your health insurance plan. If you have questions about your coverage or premiums, please contact your health insurance plan directly.
2021 inflation amount
In 2021, all pensions will receive the full 1% increase.
Changes in your income tax deduction
The Canada Revenue Agency sets the income tax rates deducted from your pension. They can adjust the rates to be used in 2021 right up until December 31, 2020. You can increase the amount of tax deducted each month from your pension any time by signing in to your online account.
Did you turn 65 in December?
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 CPP. If you’ve told us you’re collecting a CPP disability pension, we’ve already adjusted your pension.