Factor 80 is Ending Soon

No. 67

Effective December 19, 2001

This is a reminder that the Factor 80 voluntary and surplus provisions are scheduled to end on March 31, 2002. To qualify for unreduced early retirement under the Factor 80 program, members of the Public Service Pension Plan (PSPP) must satisfy the following conditions.

Factor 80 - Voluntary

PSPP members can qualify and can elect to retire if:

1. their age plus pension credit equals 80 years any time up to March 31, 2002;
2. they submit their resignation stating their intention to retire within 92 days from the end of the month in which they attain Factor 80; and
3. they terminate PSPP membership within a further 92-day period*.

*OPP members can terminate membership within 1 year (365 days) after submitting their resignation.

Factor 80 - Surplus

Surplused members may be eligible for this unreduced pension if they attain Factor 80 (age + pension credit = at least 80) by March 31, 2002**. They may also be eligible if they attain Factor 80 between April 1, 2002 and the date they terminate employment. To qualify for this benefit, surplused members must meet the following requirements:

1. they receive a notice of release from employment (a "surplus notice") by March 31, 2002 and they belong to one of the employee classes listed on the reverse;
2. upon receiving the surplus notice, they send an application to the Ontario Pension Board (with a copy to the employer), stating that they intend to retire under Factor 80, within the time limit prescribed for their employee class;
3. they waive their right to certain benefits that they would be entitled to receive as a result of the surplus notice;
4. they are still employed after March 31, 2002 and, until the employment termination date in the surplus notice, they either continue working or they stop working and instead receive a salary continuance for that period (required contributions must be remitted during that time); and
5. on the employment termination date their age plus pension credit equals 80 years or more.

**Factor 80 surplus has been extended to March 31, 2004 for PSPP members who belong to PEGO.

'Bridging' to Factor 80

PSPP members who do not have enough pension credit to retire under the Factor 80 program may be 'bridged' to an unreduced pension through a paid or unpaid leave(s) of absence. Below is a summary of some of the con-ditions that a member must meet to qualify for the bridging option. For further details, please contact the OPB.

1. The member receives a surplus notice by December 31, 2001 because of a work shortage or because his/her position is abolished and he/she belongs to one of the employee classes listed below;
2. At the end of the leave(s), the member attains Factor 80 (age + pension credit = 80) and terminates employment;
3. The member attains Factor 80 by March 31, 2002; and
4. The total leave period(s) are within the limits set in section 46(1) of the Public Service Pension Act.

The Ontario Pension Board should receive the member's termination notice at least 3 months before the leave ends.
Having this information in advance of the retirement date will help to expedite the process.

*Includes any Housing Authorities created pursuant to the Housing Authorities Act