Ontario Shared Services Pay & Benefits Services Division Pre-Retirement Planning ALOC/OCAA April 30, 2013

Objective To provide you information about the Retirement Business Process, Pre-Retirement Part-Time Employment, OPS Retiree Insured Benefits, and Termination Payments at retirement. 16/04/2018

Agenda Process for Retirement Planning Pre-Retirement Part-Time Employment OPS Retiree Insured Benefits Termination Payments 16/04/2018

Process for Retirement Planning Up to 5 Years – sign up for Retirement Planning Information Session – Webinar MYOPS>Employee Services>Learning & Development >OPS Learning and Development Review your annual pension statement and confirm your pension retirement eligibility date with your Pension Plan Administrator, Ontario Pension Board 16/04/2018

Process for Retirement Planning Up to 5 Years (Continued) Review MYOPS Life Events – Getting Ready for Retirement, Frequently Asked Questions(FAQ’s) Contact the Ontario Shared Services (OSS) Contact Centre for help with your pay and benefits questions 16/04/2018

Process for Retirement Planning Up to 6 months before you retire; speak to your manager about your plans to retire Up to 4 months Give your formal letter of intent to retire to your manager. It should state your intended last day at work. Your manager must send a copy to your HR Advisor and OSS (Payroll & Benefits Advisor) 16/04/2018

Process for Retirement Planning *If you plan to use vacation or other credits to create a paid leave, your letter should indicate your last physical day at work and the last day you are on payroll (the date you officially retire) OSS Pay and Benefits will mail to your home address the Retirement Information Package within 3 months of your retirement date. (Ensure your address is updated in WIN) Provide all requested documents (e.g., pension documents, proof of birth etc.) 16/04/2018

Process for Retirement Planning Up to 3 months Investigate converting Basic Life Insurance, Supplementary Life Insurance (if applicable) Dependent Life Insurance for your spouse (if applicable) to an individual policy with the insurance carrier Note: Evidence of Insurability is not required if you apply for the conversion within 31 days of your termination date Contact Great West Life (416) 492-4300 or 1-800-957-9777. 16/04/2018

Personal Documents Required by OPB at Retirement 16/04/2018

Retirement Timeline 16/04/2018

Pre-Retirement Part Time Employment Modified work arrangement under which you may work less than 100% hours and continue to earn 100% in the pension plan Maximum 5 year period – approved by Deputy Minister Must be a full time public servant for the last 3 years and already qualified or be qualified to retire in max 5 years Pay and benefits – same as part-time employment Must retire at the end of the arrangement 16/04/2018

Pre-Retirement Part Time Employment – How does it work? Pre-Retirement Part-time Employment participants are part time employees Minimum part-time schedule: 40% of full-time to maintain benefits Permissible work arrangements ? scenarios: Consistent days per week Time off blocks – Combination Contact your Manager/HR Advisor Participants are paid the same amount each pay period, every pay period, to reflect approved hours of arrangement 16/04/2018

IMPACT TO INSURED BENEFITS Part-time employment requires sharing of insured benefit premium costs – employee pays part-time balance of employer’s share of insurance premium CPP & EI contributions and future benefits based on actual earnings each year Income Tax deducted based on actual earnings Vacation, MCO, STSP and cost of insured benefits are pro-rated as part-time Life Insurance and LTIP – earnings based as RPT ratio decreases, coverage decreased 16/04/2018

Pre-Retirement Part-Time Employment Termination Pay – eligibility and entitlement per applicable Collective Agreement and/or MBC Compensation Directive Full time and part-time employment up to the termination date will be used to determine the length of continuous service for this purpose Pension deductions are based on full time salary Pension credit remains at 100% full time No negative effect in “best five year average salary” used to calculate monthly pension 16/04/2018

If No Retirement Occurs, Things to Consider If no retirement occurs, pension credit is reduced to equal actual time worked during the arrangement and excess pension contributions are refunded You may need to work longer to reach eligibility to retire Employee would be considered part-time for the period 16/04/2018

OPS Retiree Insured Benefits Eligibility is currently effective upon receipt of an OPS pension based on a minimum of 10 years of pension credit Current Authority: Order in Council #162/91 16/04/2018

OPS Retiree Insured Benefits Coverage: Health (including vision and hearing aid care) and dental insurance equivalent to active OPSEU employees benefits, and $2000 in basic life insurance Insurer: Great West Life Assurance Co. Premiums: 100% employer-paid Same plan design, but some coverage caps and maximums differ from current, active ALOC/OCAA benefits New policy number and Client ID New drug card Option to waive retiree Basic Life insurance (employer- paid premiums are taxable) 16/04/2018

OPS Retiree Insured Benefits Active employee benefits will terminate Dental: termination date SH&H: month end, following termination date Basic Life: month end, following termination date Optional supplementary and dependent life; Month end, following termination date Life insurance grace period: claim payable if death occurs within 31 days following date coverage ends Life insurance conversion option: Option to convert basic, supplementary and spousal dependent life insurance to 100% retiree-paid, private plan with the insurer No medical evidence required for conversion elections within 31 days of termination date Option to continue supplementary life insurance following early retirement, to max age 65. Premiums deducted from pension payment 16/04/2018

OPS Retiree Insured Benefits Current ALOC/OCAA Benefits Retiree Coverage Benefits tied to ALOC/OCAA negotiations Hospital Room - $100/day for private &/ semi-private Catastrophic Drug plan 90% Prescription Drugs, $5 Deductible per DIN Health and Dental based on active OPSEU member benefits Hospital Room - $120/day for private &/ semi-private No Catastrophic Drug Plan 90% Prescription Drugs, $3 Deductible per DIN 16/04/2018

OPS Retiree Insured Benefits Retiree Coverage Current ALOC/OCAA Benefits Hearing Aids - $2500/5 years Vision – $350/24 months Eye Exams – one routine eye exam every 24 months limited to $75 within $350 max. Hearing Aids - $1200/4 years Vision – $340/24 months, includes laser eye surgery Eye Exams – one routine eye exam every 24 months independent of $340 max. 16/04/2018

OPS Retiree Insured Benefits Retiree Coverage Current ALOC/OCAA Benefits Paramedical Services $30/visit max $1200/year Psychologist & Speech Therapist - $40/visit, max $1400/year Paramedical Services $25/visit, max $1200/year Psychologist & Speech Therapist - $25/visit, max $1400/year 16/04/2018

OPS Retiree Insured Benefits Retiree Coverage Current ALOC/OCAA Benefits Blood Glucose Monitoring machine – one purchase every 4 years Insulin Infusion Pumps – Max $2000/5 years per adult and $5000/5 years for children Dental – Pit & Fissure Covered for Dep. Children 12 and under Blood Glucose Monitoring machine – max $400 every 4 years Insulin Infusion Pumps – Max $2000/5 years Dental – Pit & Fissure Covered for Dep. Children 6 - 18 16/04/2018

OPS Retiree Insured Benefits Current ALOC/OCAA Coverage 1 x Annual Earnings- Basic Life Insurance Current Retiree Coverage Optional – Basic Life Insurance $2,000 16/04/2018

OPS Retiree Insured Benefits Conversion of Life Insurances Option to convert Basic, or Supplementary Life, or spousal Dependent Life coverage in force at retirement (or a lesser amount) into private policies with the insurer Request must be placed in writing to the current insurance carrier No medical required for conversion elections submitted to the insurer within 31 days of OPS group coverage ending Premiums (100% retiree paid) based on insurer’s market rates for individual policies 16/04/2018

Deadline for submitting pre-retirement claim expenses Claims for expenses incurred before retirement must arrive at the insurance company no later than 90 days after retirement, for payment under the active plan policy number (#44500 - health, or #42155 – Dental) No grace period 16/04/2018

Deductions from Pension Income Tax based on TD1 and TD1-ON forms Supplementary Life Insurance – if elected to age 65 16/04/2018

More Information – OPS Benefits MYOPS Home Page> HROntario Services >Total Compensation > Benefits ALOC/OCAA Benefit Guide (2007) & addendum (2009) Guide to Your Benefits After Retirement (2002) & addendum 16/04/2018

Termination Payments Termination Pay - Severance Payable Earned & Unused Vacation Credits Reference: ALOC/OCAA Agreements: 2009 - 2013 16/04/2018

Termination Payments Severance: 1 week of salary for each year of continuous service to a maximum payable of 26 weeks or half-annual salary & for service accrued to December 31, 2004 Leaves Without Pay reduces entitlement 16/04/2018

Termination Payments Vacation Credits: Current (pro-rated) and prior year’s unused vacation credits payable @ current salary rate NOTE No Payment: Unused MCO credits/approved excess vacation carry over 16/04/2018

Termination Payments – Payment Options May request payments as follows: Cash Transfers to RRSP Next Calendar Year Convert your eligible severance pay to paid leave. 16/04/2018

Termination Payments - Payment Options = Cash Severance: Lump Sum (Cash) Income Tax Deduction: Up to $5,000 @ 10% From $5,000 to $15,000 @ 20% Over $15,000 @ 30% 16/04/2018

Termination Payments – Payment Options = RRSP Severance – Transfer to RRSP In addition to the annual RRSP room, CRA allows transfers to RRSP’S As a Retiring Allowance How Much? Retiring Allowance Room: $2,000 p/year of service up to 1995, plus $1,500 p/year up to 1988, for years not included in pension credit 16/04/2018

Termination Payments- Payment Options = Paid Leave Termination - Severance Pay Convert to paid leave – leave the OPS before your retirement date. Discuss this option with your manager. Reference: Applicable Collective Agreement and/or Management Board Compensation Directive 16/04/2018

Termination Payments - Payment Options = Cash Unused & Earned Vacation Credits Lump Sum – Cash Payment Income Tax Deductions Up to 48% Tax Amount determined by adding lump sum amounts to be paid out to the currently earned salary CPP and Employment Insurance 16/04/2018

Termination Payments - Payment Options = RRSP Unused and Earned Vacation Credits Transfers to RRSPs; - As per Tax Assessment - CPP and EI 16/04/2018

Contact Information 16/04/2018

Thank You QUESTIONS 16/04/2018