OSSTF DISTRICT 17
  • Teachers' Bargaining Unit
    • TBU Committees >
      • TBU Council
      • Educational Services >
        • D17 OSSTF PD Guidelines
        • D17 OSSTF Educational Services Meeting Dates
      • Working Conditions
      • Grievance
      • Teacher Trustee Relations
      • Excellence In Education
      • Communications
    • Health and Safety
    • Constitution
    • Collective Agreement
  • Benefits
    • OTIP Benefits
    • Dispensing Fee Guide Simcoe County
    • LTD - Long Term Disability
    • EFAP: LifeWorks
    • CAREpath
    • Feeling Better Now
    • Employee Assistance Program
  • Forms
    • Not sure which FORM to choose? Click here.
    • Abilities Form
    • Health and Safety Concerns
    • Workplace Injury & Illness (WSIB Forms)
    • BILL 157 - Safe Schools Reporting Form
    • Aggressive Incident Reporting Form
    • Violent Incident Form
    • Workplace Harassment or Objectionable Behaviour A4075
    • Joint Health and Safety Committee Inspection Areas
  • Bulletin Board
    • Educators Financial
    • OTIP
    • Edvantage
    • UPDATE and FORUM
  • Contact

copied and pasted in its entirety from OTPP

12/4/2014

0 Comments

 
Picture
Thanks to the website of the Ontario Teachers' Pension Plan for this very good set of definitions.  I have copied and pasted it directly from there.  http://www.otpp.com/members/pension-news-online/articles/article/-/article/723528


In honour of financial literacy month, we compiled a list of some of the top ten pension terms. Read on to see how many you know.

1. Defined benefit plan
Teachers' is a defined benefit pension plan. Your pension is paid for life and determined by a formula, not by the return on investments.

2. Contribution rates
All members contribute a percentage of their salary to the Teachers' pension plan. The plan sponsors jointly decide the contribution rate, which is paid by working members and matched by either the Ontario government or designated employers on behalf of all members.

3. Qualifying years
Qualifying years are used to determine when you are eligible for a pension. They are a measure of the length of your teaching career.

4. Qualifying factor (85 factor)
Your age plus your qualifying years equal your qualifying factor. Your factor is used to determine when you're eligible for an unreduced pension and to calculate your early retirement reduction. You can begin to receive an unreduced pension when your age plus qualifying years add up to 85.

5. Unreduced vs. reduced pension
You qualify for an unreduced pension when you reach your 85 factor or age 65. If you retire before qualifying for an unreduced pension, you can receive a reduced pension provided you're at least 50 years old. An early retirement reduction will be applied.

6. Credit and average salary
Credit is used to determine the value of your pension, and is based on your actual teaching time.
Unlike qualifying years, which are a measure of the length of your career, credit is a measure of the exact amount of time you spent teaching. Your average salary is also used to determine the value of your pension. It is the average of your highest five school year salaries. 

7. Commuted value
The commuted value is the lump sum you would need today to replace your future pension. It depends on a number of factors, including your age, your earned pension benefit, your qualifying years of service, and bond yields. It can fluctuate considerably with changes in inflation rates, interest rates or the calculation basis.

8. Pension Adjustment (PA)
The Canada Revenue Agency measures the value of the pension benefit you earn in a calendar year. PAs offset the amount of new RRSP room created each year.

9. 10-year pension guarantee option
If you die before you've been on pension for 10 years, this option provides your CPP-reduced pension to your survivor or estate for the balance of 10 years.

10. Consumer Price Index (CPI)
CPI is a measure of inflation produced by Statistics Canada. We use the CPI to calculate annual inflation adjustments to pensions and deferred pensions. The base inflation adjustment for 2015, which will take effect in January, is 1.7%.


Picture
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    home

    Karen Littlewood

    The view from my desk, as Teacher Bargaining Unit President for D17 Simcoe

    Archives

    October 2016
    September 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014

    Categories

    All

    RSS Feed

Photos used under Creative Commons from _Pek_, BobMical
  • Teachers' Bargaining Unit
    • TBU Committees >
      • TBU Council
      • Educational Services >
        • D17 OSSTF PD Guidelines
        • D17 OSSTF Educational Services Meeting Dates
      • Working Conditions
      • Grievance
      • Teacher Trustee Relations
      • Excellence In Education
      • Communications
    • Health and Safety
    • Constitution
    • Collective Agreement
  • Benefits
    • OTIP Benefits
    • Dispensing Fee Guide Simcoe County
    • LTD - Long Term Disability
    • EFAP: LifeWorks
    • CAREpath
    • Feeling Better Now
    • Employee Assistance Program
  • Forms
    • Not sure which FORM to choose? Click here.
    • Abilities Form
    • Health and Safety Concerns
    • Workplace Injury & Illness (WSIB Forms)
    • BILL 157 - Safe Schools Reporting Form
    • Aggressive Incident Reporting Form
    • Violent Incident Form
    • Workplace Harassment or Objectionable Behaviour A4075
    • Joint Health and Safety Committee Inspection Areas
  • Bulletin Board
    • Educators Financial
    • OTIP
    • Edvantage
    • UPDATE and FORUM
  • Contact