Contributions − Who Pays and How Much?

Once you join OPTrust Select, you and your employer both contribute toward your pension. Your contributions will be deducted from each pay at a rate of three per cent of your pensionable pay. Your employer will match the contributions you make.

Contributions

Your pensionable pay equals the regular salary or hourly wages you earn during each pay period. Pensionable pay does not include overtime pay, bonuses or other lump sum payments in lieu of benefits, or any payment determined by OPTrust not to be pensionable.

The table below illustrates the annual amount you could contribute, based on your pensionable pay.

Contribution Rate
A
Pensionable Pay
B
Annual Member Contributions
AxB
3% $25,000 $750
3% $38,250 $1,148
3% $52,000 $1,560

During the first two years your employer participates in OPTrust Select, your employer contributes an additional 0.2%. You do not pay this additional amount.

Contribution rates for OPTrust Select are set by the Plan sponsors and may change based on the Plan’s funding requirements. You and your employer cannot contribute more or less than the Plan requires.

Pension Contributions and Your Income Tax

Your pension contributions are tax deductible. They are deducted from your pre-tax income and your employer will report them on your income tax slip (T4).

Your Pension and Other Retirement Savings

The pension you earn each year under OPTrust Select will reduce your available registered retirement savings plan contribution room for the following year. This is known as a pension adjustment and your employer will report it on your T4.

The amount you can contribute to a tax-free savings account is not impacted by your contributions to OPTrust Select.

Suspended Contributions

Your membership in OPTrust Select will be suspended if you start participating in the primary schedule of benefits under the Plan. For example, if you take a position with an employer who participates in the primary schedule of benefits and you choose or are required to join the primary schedule, then your membership in OPTrust Select will be suspended.

If your OPTrust Select membership is suspended your pension will be affected in two ways. First, contributions to OPTrust Select will stop until you terminate your employment and membership under the primary schedule. Second, you will no longer earn pension benefits under OPTrust Select for the period your contributions are suspended. OPTrust will notify your OPTrust Select employer to stop contributions while you are participating in the primary schedule of benefits.