Pension Questions with Org Change and Layoff Service

Pension Questions with Org Change and Lay-off

Service vs. Pensionable Service Continuous years of service (“Employment Date” on your pension statement) Used to calculate the 60/80 factor Pensionable service (how many years you’ve paid in) Used to calculate how much money you receive • Non-negotiable

Pension options on leaving the university Option Pros Take the commuted value as a lump sum with option to direct portion into taxprotected RSP • Large amount of money right away and some flexibility with RSPs Cons • • • Future Vested Pension • start your pension at 65 (or age 60 with grow in rights) • No penalty or reduction on your pension Pension payments until death • Retire from Active Service Start receiving pension income right away Pension payments until death Eligible for medical and tuition benefits • • • No guarantee money will last through your lifetime Severed from university – no medical or tuition benefits No access to bridge Waiting a few years with no income from U of T Severed from university – no medical or tuition benefits Reduced pension (grow in rights mitigates reduction)

• Legislated • Non-negotiable • REDUCES the penalty for retiring early Grow in Rights

Unreduced Early Retirement and the Bridge • 60/80 factor is non-negotiable • Dates of bridge benefit are non-negotiable • December 31 st 2020 – April 30 th 2021.

How can we get people to 60/80? • Negotiate dates of retirement • Opt for redeployment pool up to 24 months

Employment / EI Options Option Employment EI Redeployment Pool • Apply for other jobs at U of T with redeployment status • Can work elsewhere at the same time Eligible for EI Enhanced Severance or reduced severance after time in the Pool • Can work elsewhere • Cannot apply to U of T until the end of severance black out period Defers EI until end of severance period (temporary COVID measure Take severance, retire and are now receiving a monthly pension • Can work elsewhere • Can take casual work at U of T while receiving pension • If you are rehired as U of T Staffappointed, pension stops and Not eligible for EI – lay-offs after Sept 27, 2020 don’t delay EI for severance)

• Canada Pension Plan • https: //www. canada. ca/en/services/benefits/publicpensions/cppbenefit/amount. html • Old Age Security • https: //www. canada. ca/en/services/benefits/publicpensions/cpp/old-agesecurity. html Government pensions

Homework • Get pension numbers with different scenarios http: //digital. alight. c om/utps/ • Get CPP and OAS numbers