Transfers

What's on this page:

    Overview

    This subsection provides information on transfers of pension credit into the PSPP and includes these topics:

    Additional details

    For details concerning transfers out of the PSPP see Termination.

    OPSEU Credit to the PSPP

    This section describes how and when past credited service under the Ontario Public Service Employees Union Pension Plan (OPSEU Plan) may be transferred into the PSPP. It includes these topics:

    Eligibility

    PSPP members can transfer their OPSEU credited service when they join the PSPP.

    The OPSEU Pension Plan credit may be transferred into the PSPP in one of two ways:

    • a mandatory transfer where there has been no break in employment, or
    • a voluntary purchase of a deferred pension benefit where there has been a break in employment and membership between
      • the OPSEU Pension Plan, and
      • the PSPP.

    Mandatory transfer

    A mandatory transfer occurs when a member of the OPSEU Pension Plan receives a promotion or change in position that requires the member to

    • terminate membership in the OPSEU Pension Plan but not terminate employment, and
    • immediately join the PSPP.

    Mandatory transfer process

    This table describes the process for the mandatory transfer of a member's pension credit and funds from the OPSEU Pension Plan into the PSPP.

    Stage Description
    1 The employer provides the following information to OPB:
    2 OPB requests from the OPTrust
    • a mandatory transfer of the Transfer Amount in respect of the member's credit in the OPSEU Pension Plan, plus
    • any accrued interest, as specified in the Schedule of Actuarial Assumptions under the Multilateral Portability Agreement.
    3 The employer
    • stops remitting contributions to OPSEU, and
    • ensures that contributions are remitted to OPB.
    4 OPB sends a letter to the member confirming the transfer of pension credit.
    5 The member makes the following choices.
    When the member has... Then...
    an insufficient transfer amount from OPTrust
    • the member may elect to top-up to OPB to obtain full credit., or
    • OPB pro-rates the pension credit.
    has an on-going buyback with OPSEU Pension Trust the member may continue to pay instalments to OPB to complete the buyback.

    Voluntary purchase

    To be eligible for this type of voluntary purchase of a deferred OPSEU pension plan entitlement, the member must have

    • terminated employment with an employer,
    • terminated membership in the OPSEU Pension Plan,
    • chosen a deferred pension entitlement, and
    • subsequently acquired a position that requires membership in the PSPP.

    Process

    See Buybacks for more details regarding the voluntary purchase of a deferred OPSEU pension plan entitlement.

    MOPPS or RTA

    This section describes the transfer agreements that allow for the transfer of funds between pension plans:

    • Major Ontario Pension Plans (MOPPS) multilateral agreement, and
    • Bilateral Reciprocal Transfer Agreement (RTA).

    The topics include

    Eligibility

    A transfer is possible for new members if the following conditions are met:

    • There is a transfer agreement in place between the PSPP and the former plan. Please refer to the listing:  Transferring Pension Credit into the PSPP (PDF)
    • The new member has pension credit in the former plan.
    • The new member qualifies and applies for a transfer within the required time limits.

    Supplementary Pension

    The PSPP does not provide a supplementary pension for service transferred under a MOPPS agreement or RTA.

    For more information

    For more information on both these agreements see:

    MOPPS transfers into the PSPP

    This section describes a transfer under the Major Ontario Pension Plans (MOPPs) agreement and includes these topics:

    The MOPPs agreement

    The MOPPs agreement facilitates Pension Credit transfers among participating pension plans for employees who move among the larger Ontario public sector employers.

    The time limits and requirements for each participating plan are the same, regardless of which pension plan the member moves into or out of.

    Retirement Compensation Arrangement (RCA)

    The PSPP does not provide a supplementary benefit from the Public Service Supplementary Plan (PSSP) for service transferred under a MOPPS agreement or RTA.

    The PSSP is a non-registered supplementary retirement plan designed to provide benefits for those PSPP members whose pension is limited by the application of the Income Tax Act limits.

    MOPPS participants

    Click on Transferring Pension Credit into the PSPP (PDF) for a current list.

    Eligibility

    A new member may be eligible to transfer pension credit if all of the following conditions are met:

    • Membership in a participating plan was terminated and the pension credit was left in that plan. Example: The commuted value of the pension was not transferred to a locked-in retirement account or other retirement vehicle, or the contributions were not refunded.
    • The member started working for a new employer within 18 months from the date of leaving the former employer.
    • The member joined the PSPP within 6 months of becoming eligible to do so.
    • The member submitted within 6 months from the date of joining the PSPP the following forms to OPB:

    Transfer Process

    This table describes the transfer of funds and credit from a MOPPS participating plan to the PSPP.

    Stage Description
    1 The member completes and submits the  OPB1058 - Application to Transfer Pension Credit (PDF) to OPB.

    Upon receipt of the completed OPB 1058, OPB prepares and sends to the member an Appendix A - Request for Transfer Quotation. Appendix A authorizes the former plan to provide PSPP with information needed to determine the transfer cost.

    The member completes and signs Appendix A and returns it to OPB.

    Note: OPB 1058 form is included in the member's enrolment package but Appendix A is issued by OPB only upon receipt of the completed OPB 1058.
    2 OPB receives the forms and undertakes the following.
    When OPB... Then OPB...
    receives both forms forwards the signed Appendix A to the former plan to collect the necessary information.
    does not receive Appendix A with OPB 1058
    • sends a copy of Appendix A directly to the member for their signature
    • awaits the return of the signed Appendix A, and
    • forwards the signed Appendix A to the former plan to collect the necessary information.
    Important: Both forms must be received within 6 months from the date of joining the PSPP.
    3 The former plan completes MOPPS Transfer Data form and returns it to OPB within 90 days of receiving Appendix A.
    4 Within 60 days of receiving the MOPPS Transfer Data, OPB
    • calculates the cost of the transfer, and
    • sends the member an Appendix B - Request for Transfer outlining the cost and value of the pension credit.
    5 The member completes and returns the Appendix B to OPB within 90 days of the issue date.

    Note: Appendix B allows the member to
    • authorize the transfer and
    • instruct OPB to proceed with or decline the transfer.
    6 The former plan transfers the Transfer Amount to the PSPP. OPB assesses the Past Service Pension Adjustment (PSPA) implications and files the PSPA with Canada Revenue Agency (CRA), if applicable.
    7 When the member has an insufficient transfer amount from the MOPPS plan, then
    • the member may elect to top-up to OPB to obtain full credit., or
    • OPB pro-rates the pension credit.

    See  Transferring Pension Credit into the PSPP (PDF) for Deadlines.

    RTA transfers into the PSPP

    This page describes a credit transfer under a Reciprocal Transfer Agreement (RTA) and includes these topics:

    Reciprocal Transfer Agreements

    An RTA is an agreement entered into between the PSPP and another registered pension plan to enable the transfer of credit from that pension plan into the PSPP (or vice versa).

    Unlike the MOPPS Agreement, an RTA is effective only between the PSPP and the participating plan and rules may vary with each RTA.

    Retirement Compensation Arrangement (RCA)

    Retirement Compensation Arrangement (RCA) OPB’s RCA is an arrangement under which contributions are made into a trust to fund pension benefits (and that is not a registered pension plan (RPP)).

    The RCA may improve portability options for members transferring into or out of the PSPP, which in turn may assist employers in attracting and retaining executive and other senior staff. A tax-sheltered transfer is possible where RCA benefits are transferred directly to another RCA. A direct RCA Transfer is only possible where both the PSPP and the predecessor/successor plan agree to the transfer.

    RTA participants

    Click on  Transferring Pension Credit into the PSPP (PDF) for a current list or call OPB directly to confirm if there is an RTA in effect.

    Eligibility

    A new member may be eligible to transfer pension credit if all of the following conditions are met:

    • Membership in a participating plan was terminated and the pension credit was left in that plan.
      • Example: The commuted value of the pension was not transferred to a locked-in retirement account or other retirement vehicle, or the contributions were not refunded.
    • The member started working for a new employer within 3 months from the date of leaving the former employer.
    • OPB receives the following forms within 12 months from the date of the member joining the PSPP:

    Exceptions: These conditions apply to current RTA participants with the exception of Quebec and the Federal Government. Contact OPB for Quebec and Federal Government RTA transfers. See  Transferring Pension Credit into the PSPP (PDF) for actual deadlines.

    Transfer process

    This table describes the transfer of funds and credit into the PSPP under an RTA.

    Stage Description
    1 Member must start working for new employer within 3 months of date of leaving the former employer.
    2 The member completes and submits the following forms to OPB: Important: The member must apply within 12 months from the date of joining the PSPP.
    Note: OPB 1058 form is included in the member's enrolment package.
    3 OPB receives the forms and undertakes the following.
    When OPB... Then OPB...
    Receives both forms forwards the signed Appendix A to the former plan to collect the necessary information.
    Receives OPB 1058 and does not receive Appendix A
    • sends a copy of Appendix A directly to the member for signature
    • awaits the return of the signed Appendix A, and
    • forwards the signed Appendix A to the former plan to collect the necessary information.
    4 OPB forwards a copy of Appendix A to the former plan to collect the necessary information.
    5 The former plan completes Appendix A and returns it to OPB.
    6

    OPB

    • calculates the cost of the transfer amount, and
    • sends the member an Appendix B - Request for Transfer with the transfer amount.
    7

    The member completes and returns Appendix B to OPB.

    Note: Appendix B allows the member to

    • authorize the transfer and
    • instruct OPB to proceed with or decline the transfer.
    8 The former plan transfers the Transfer Amount to the PSPP. OPB assesses the Past Service Pension Adjustment (PSPA) implications and files the PSPA with Canada Revenue Agency (CRA), if applicable.
    9

    When the member has an insufficient transfer amount from the former plan, then

    • the member may elect to top-up to OPB to obtain full credit., or
    • OPB pro-rates the pension credit.

    See  Transferring Pension Credit into the PSPP (PDF) for Deadlines.