Lanark District 29
Lanark District 29
Re-employment rules to change January 1,2009
Pension and Retirement Concerns
Your pension will increase 2.5 per cent next year to keep pace with changes in the cost of living. This increase will be reflected in your February pension payment.
To see exactly how much your pension will increase, visit http://otpp.com iAccess Web, during the last week of January. If you aren't yet registered for this free member service, or you have chosen to receive personal pension information by mail, watch for a printed statement in early February that details your new monthly pension.
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If you do this, your pension will be suspended and you will contribute to the plan during your re-employment.
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Your spouse or dependent children are eligible for a survivor pension. The amount of the pension is a percentage of what your pension would be after age 65, plus annual inflation increases.
Spouse
To be eligible for a pension, you and your spouse must be living together when your pension starts. Even if you subsequently separate or divorce, your spouse remains eligible to receive a survivor pension. If you're not living together when your pension begins, your spouse is not eligible for a survivor pension. Different rules may apply if you retired before 1990. Contact us for details if you don’t know what survivor benefits you selected when you retired.Unless you and your spouse decide otherwise, your spouse automatically receives 60% of your Teachers' pension. You can decrease your spouse's survivor pension to 50% or increase it to 75%. The increase or decrease must be arranged before your pension starts.
Children
Eligible children will receive a pension if you don't have an eligible spouse. A child's default pension is 50% of your pension; however, if you had an eligible spouse at retirement, your child's pension is the amount your spouse was entitled to receive.
Summary of your options:Automatic 60% survivor pension:
- If you do nothing, an eligible spouse automatically receives 60% of your pension calculated after the CPP reduction has been applied.
- The cost depends on the age of you and your spouse. Usually your pension is reduced about 2%. The reduction remains in effect even if your spouse predeceases you.
Reduce your spouse's pension to 50% of your teachers' pension at age 65:
- You and your spouse must sign the Waiver of Joint and Survivor Pension form (obtained from the Ontario Teacher Pension Plan ((416) 226-2700 or 1-800-668-0105). This can only be done within the 12-month period before your pension begins and cannot be revoked once your pension begins.
- A 50% survivor pension is free, that is, no reduction to your pension.
Increase your spouse's pension to 65, 70, or 75% of your teachers' pension after age 65:
- You must apply at least two years before you go on pension or before you turn 63, whichever is earlier. If you miss the deadline, you may still be approved provided you pass a medical examination. You may revoke the increase right up until your pension begins.
- The reduction to your pension depends on the age of you and your spouse and the survivor option you chose. The reduction remains in effect even if your spouse predeceases you.
(2)Marriage After Retirement
Whether or not you can provide a survivor pension to a new spouse (common-law or married) after you retire depends on whether you have another spouse or children eligible to receive a survivor pension.
If you do not already have an eligible spouse or dependent children, you can provide a pension of 50% to 75% of your pension to your new spouse. Please contact the Teacher Pension Plan ((416) 226-2700 or 1-800-668-0105) for more information as many factors affect eligibility for survivor pensions.Information on "Survivor Benefits" posted on the Ontario Teachers' Pension Plan website: http://www.otpp.com
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The RTO-ERO Provincial Office produces over 50 Fact Sheets on a variety of social, health, legal, pension, and financial issues. The titles of these very useful fact sheets are list below. These fact sheets are available to RTO-ERO members at no charge. Members can obtain any of these facts sheets in one of the following ways:
- call toll free 1-800-361-9888 ext. 221
- use internet address – ltimms@rto-ero.org
- go to the Retired Teachers of Ontario website at www.rto-ero.org and logon to the Members Only section. Then you can open the fact sheets in Adobe Reader.
To visit the RTO Provincial Web site Members Only section, you will need your 9-digit RTO membership number to access.
A. FINANCIAL |
1. Income Tax Clinics for Low Income Households |
2. Income Tax Forms |
3. Medical Expenses |
4. Pension Escalation Calculation |
5. Reverse Mortgages |
6. Taxation for Snowbirds |
7. Using Credit Cards |
8. Medical, Disability and Attendant Care Deductions |
| 9. Pension Income Splitting |
B. GOVERNMENT BENEFITS |
1. Canada Pension Plan |
2. Guaranteed Income Supplement |
3. Old Age Security |
4. Spouse's Allowance and Allowance for Survivor |
5. Veterans |
C. HEALTH |
1. Assistive Devices Program and Home Oxygen Program |
2. Community Support Services |
3. Elder Abuse |
4. Mail Order Pharmacy Programs |
5. Ontario Drug Benefit Program |
6. Special Drugs Program |
7. Telehealth Ontario |
8. Trillium Drug Program |
9. Community Care Access Centres |
10. Long Term Care Facilities |
D. INSURANCE |
1. Automobile Insurance Endorsements |
2. Life Insurance - Designation of Beneficiaries |
3. How To Lower Your Insurance Premiums |
4. Vacation Checklist |
5. Your Driving Record and Insurance Rates |
6. Your Property Insurance Policy |
7. Driver License Renewal |
E. LEGAL |
1. Bequests to RTO/ERO |
2. Important Documents |
3. Lawyer Referral Service |
4. Legal Aid |
5. Powers of Attorney |
6. Starting Your Own Business |
7. Complaining About Provincial Government Services |
8. Funeral Pre-Planning |
9. The Executor's Checklist |
10. Mortgage Fraud |
F. MARITAL MATTERS |
1. Battered Spouses |
2. End of a Common-Law Relationship |
3. Grounds for Divorce |
4. Living Together |
5. Marriage Contracts/Cohabitation Agreements |
6. Marriage/Remarriage After Retirement |
7. Separation |
8. Separation Agreements |
9. Support Orders on Divorce |
G. SURVIVING SPOUSE |
1. Applying For A Survivor Pension |
2. Associate Membership in RTO/ERO |
3. Canada Pension Plan |
4. Health Insurance |
5. Planning Your Legal Affairs |
H. RETIREMENT ISSUES |
1. Vacation Check List |
2. Driver License Renewal |
3. Important Documents |
4. Downsizing |
5. Residence Options for Seniors |
6. The Emergency Assistance Program |
I. HOME SECURITY |
1. Home Security Check List |
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To view Pension News Publication online, you will need to sign in on the members iAccess Web on
The Ontario Teachers' Pension Plan website at http://otpp.com
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Pensions and Retirement Concerns
Questions about your pension are best answered by a pensions specialist. The Ontario Teachers' Pension Plan Board provides this service online www.otpp.com and by telephone 416.226.2700 or 800.668.0105 . As well, you can sign up on the site to receive the newsletter Pension News electronically.
The OTPP site also provides a wealth of information on the investments and governance of the plan.
Should you take your Canada Pension (CPP) at 60? General information on the Canada Pension Plan and the necessary forms are available at the Human Resources and Social Development Canada web site. In order to be eligible to receive CPP, you must be not working or earning less than the allowed amount, (about $900.00 -- check with Service Canada) in the month prior to and the month of your application. Your CPP is reduced by .5% each month you are under 65 years of age. Until you are 65, CPP is added to your teachers' pension. Once you are 65, the CPP is integrated with your OTPP.
