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CPP and your pension

Throughout your career, you contributed to both our plan and the Canada Pension Plan (CPP). During your retirement, you'll collect a pension from both plans.

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The bridge benefit

We provide a bridge benefit to supplement your retirement income until age 65, when you're eligible for a CPP pension. The month after you turn 65, or immediately if you start a CPP disability pension, the bridge benefit ends, and your Ontario Teachers' pension payment is adjusted.

Impact to your retirement income

Everyone's situation is unique. Many pensioners who are turning 65 this year and retired five years ago after teaching for 30 years, can expect to see their Ontario Teachers' pension decrease by about $6,700 a year, or around $550 a month.

But you may find the impact to your bottom line different when your bridge benefit ends. It all depends on whether you're already collecting a reduced CPP pension or waiting for an unreduced amount.

You'll collect the bridge benefit, and it'll end the month after you turn 65, regardless of when you decide to collect your CPP pension.

How your pension works with CPP

Our plan works with the CPP, just like many defined benefit pension plans in Canada. Contributions to and benefits from Ontario Teachers' take into account your participation in CPP.

Old Age Security (OAS) has no impact on your Ontario Teachers' pension.

During your working years

You contribute to both your Ontario Teachers' pension and CPP.

Each year, CPP establishes a maximum amount of earnings (also known as the Year's Maximum Pensionable Earnings, or the YMPE). If you earn more than the YMPE, then you don't pay CPP contributions on the portion of your salary that's above the YMPE.

Your Ontario Teachers' contributions were reduced to reflect the contributions you made to the CPP during the same period.

Collecting a reduced CPP pension

Here are three things you need to know when you turn 65:

  1. Your  bridge benefit  ends the month after your 65th birthday and you'll notice a decrease in your total pension income. Use our bridge benefit calculator to get an idea of how much your bridge benefit currently is. Keep in mind the estimate doesn't include future inflation increases.
  2. To see the exact current value of your bridge benefit, sign in to your account. We also include it on your Retired Member Statement (you receive this each year in spring once you retire).
  3. You'll likely be eligible to collect OAS benefits, which should help to offset the decrease to your pension.

Waiting until age 65 or later to collect CPP

If you wait until age 65 or later to begin collecting a CPP pension, and you've contributed to CPP for your entire career, you most likely won't notice a significant difference in your pension income when your bridge benefit ends.

Here are three things you need to know:

  1. Your  bridge benefit  ends the month after your 65th birthday. But, your unreduced CPP pension will likely absorb the impact of the decrease.
  2. Use our bridge benefit calculator to get an idea of how much your bridge benefit currently is. Keep in mind the estimate doesn't include future inflation increases. To see the exact current value of your bridge benefit, sign in to your account. We also include it on your annual Retired Member Statement (you receive this each year in the spring once you retire).
  3. You'll be eligible to receive Old Age Security (OAS).

If you have questions about CPP or OAS, contact them directly.

Understanding your retirement income

The CPP and OAS complement your Ontario Teachers' pension. Here's what you need to know about these components of your retirement income.

You can collect OAS payments at age 65. OAS has no impact on your Ontario Teachers' pension.

CPP is integrated with your Ontario Teachers' pension

We provide a bridge benefit to supplement your retirement income until age 65 when you're eligible for an unreduced CPP pension. The month after you turn 65, or earlier if you start a CPP disability pension, the bridge benefit ends.

We'll adjust your pension at that time by an amount that's likely less than your unreduced CPP pension. This amount is based on a formula, not what you'll receive from CPP.

Use this tool to get an idea of how much your bridge benefit currently is. Keep in mind the estimate doesn't include future inflation increases.

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Your bridge benefit amount, without inflation, is about
$ 0

DISCLAIMER

This calculator provides an estimate of your bridge benefit amount. This isn't your final bridge benefit amount. Your final bridge benefit amount will include future inflation adjustments. This calculator assumes that you contributed to both CPP and Ontario Teachers’ while you worked. It doesn't take partial years or part-time employment into consideration. The formula used is:

CPP adjustment factor (0.45%)
x
Years of service in Ontario Teachers' during which you also contributed to CPP
x
Year's Maximum Pensionable Earnings average or best-five salary (if less)
=
Bridge benefit amount

If you go on a CPP disability pension, make sure to always contact us and let us know immediately, so we can make the necessary adjustments to your pension.

Summary of your Ontario Teachers' and Government pensions

Age Ontario Teachers' Pension Plan (OTPP) Canada Pension Plan (CPP) Old Age Security
Up to 59 Unreduced with 85 factor. To age 65, your pension equals 2% × credit × best-five years' salary. Not available Not available
60 to 65 Unreduced with 85 factor. To age 65, your pension equals 2% × credit × best-five years' salary. Eligible if you're still employed and receiving a CPP retirement pension, you must still contribute to CPP. Not available
65 and older Your OTPP pension is adjusted for CPP by an amount that's likely less than your unreduced CPP pension.* Eligible if you're still employed and receiving a CPP retirement pension, you can make additional, voluntary contributions to CPP until age 70. Eligible

* Applicable for career teachers; a different adjustment may apply for occasional teachers.

Before deciding when to take your CPP retirement pension, we recommend you go directly to the source to get estimates of your reduced and unreduced CPP pension. Visit the CPP website, call 1-800-277-9914 or contact your local Service Canada office.