How Your Pension Is Calculated

Your lifetime OPTrust Select pension is based on a formula which takes into account a set percentage (0.6%) of your annualized pensionable pay and the pension service you earn in each year of employment.

For definitions of annualized pensionable pay and pension service, please refer to the Pension Terms available here.

For each year of OPTrust Select membership, the pension amount you earn is calculated as follows:

0.6% x Your Annualized Pensionable Pay x Your Pension Service

The table below shows an example of the pension a member would earn over three years, based on their annualized pensionable pay and pension service in each year. In this example, the member works part-time hours during the first two years and full-time hours in the third year.

Year Pension Accrual Rate
A
Annualized Pensionable Pay
B
Pension Service (in years)
C
Annual Pension
A x B x C
1 0.6% $50,000 0.50 $150
2 0.6% $51,000 0.75 $230
3 0.6% $52,000 1.00 $312
Total Annual Pension $692

Upgrades Before Retirement

While contributions are being made, your earned pension may be increased on an annual basis at the discretion of the Board of Trustees, based on the funded status of the Plan and other factors. These upgrades are not guaranteed and can range from 0-100% of the lesser of the increase in the Average Industrial Wage or the increase in the Consumer Price Index, subject to an eight per cent maximum. Upgrades help to protect the purchasing power of your pension against inflation over time.

When you retire, your total annual pension will be equal to the sum of the annual pension accruals that you accumulate over your entire period of membership in the Plan including any upgrades that have been granted before retirement.