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

2. Objective
To provide you information about the Retirement Business Process, Pre-Retirement Part-Time Employment, OPS Retiree Insured Benefits, and
Termination Payments at retirement.
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3. Agenda Process for Retirement Planning
Pre-Retirement Part-Time Employment
OPS Retiree Insured Benefits
Termination Payments
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4. 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
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5. 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
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6. 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)
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7. 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.)
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8. 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) or
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9. Personal Documents Required by OPB at Retirement
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10. Retirement Timeline
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11. 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
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12. 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
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13. 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
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14. 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
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15. 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
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16. 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
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17. 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)
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18. 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
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19. 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
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20. 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.
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21. 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
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22. 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
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23. OPS Retiree Insured Benefits
Current ALOC/OCAA
Coverage
1 x Annual Earnings- Basic Life Insurance
Current Retiree Coverage
Optional – Basic Life Insurance $2,000
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24. 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
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25. 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 (# health, or #42155 – Dental)
No grace period
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26. Deductions from Pension
Income Tax based on TD1 and TD1-ON forms
Supplementary Life Insurance – if elected to age 65
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27. 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
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28. Termination Payments Termination Pay - Severance
Payable Earned & Unused Vacation Credits
Reference: ALOC/OCAA Agreements:
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29. 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
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30. Termination Payments Vacation Credits:
Current (pro-rated) and prior year’s unused vacation credits current salary rate
NOTE
No Payment: Unused MCO credits/approved excess vacation carry over
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31. Termination Payments – Payment Options
May request payments as follows:
Cash
Transfers to RRSP
Next Calendar Year
Convert your eligible severance pay to paid leave.
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32. Termination Payments - Payment Options = Cash
Severance:
Lump Sum (Cash)
Income Tax Deduction:
Up to 10%
From $5,000 to 20%
Over 30%
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33. 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
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34. 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
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35. 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
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36. Termination Payments - Payment Options = RRSP
Unused and Earned Vacation Credits
Transfers to RRSPs;
- As per Tax Assessment
- CPP and EI
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37. Contact Information
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38. Thank You
QUESTIONS
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