FAQs for retired members

Once we receive and process the required information, we’ll be reviewing our records and where applicable, will adjust pensions retroactively, with interest. Sign in to your account to check the status of your retroactive salary increase. Read our News story to learn what your status means.

When we’ve completed your adjustments, it may take up to three weeks to receive your retroactive payment. While we'll do our best to pay you during this timeframe, some of you may have to wait a little longer. Keep an eye on your Pension Payments page to see the exact amount of your pension increase.

We’re aiming to complete all work related to retroactive salary increases due to Bill 124 and new collective agreements by the summer of 2025, with steady progress starting in the fall of 2024. This will take some time because the high volume of adjustments, on top of our regular service commitments, is unprecedented. We ask for your patience as we work through them all. 

Our contact centre won't have any further information to share with you about retroactive adjustments at this time, so there’s no need to call or email.

If you’re eligible to receive the retroactive salary increase, ensure your former employer has your current address and other important details. They may need to reach you with additional information about the increase and payment process. 

It’s important to update your address, email or phone number with us too. Simply sign in to your account and review your Profile to ensure everything's correct.

Many teachers have long-term income protection (LTIP) agreements with their employers that may provide pensionable coverage during a period of long-term disability (LTD). We calculate the amount of pensionable LTIP salary and credit based on your pre-LTIP salary and credit, which is what you would’ve earned in the school year you started LTIP.  

Started LTIP during Bill 124 period?

If you started receiving LTIP benefits anytime in the 2019-2020, 2020-2021 or 2021-2022 school years, we’ll recalculate the pre-LTIP salary in the year you started LTIP.

Example:

• Started LTIP in 2019-2020 school year
  
• Pre-LTIP salary was $100,000
  • 2019-2020 increase → $100,000 x 0.75% = $100,750

We’ll also be reviewing your pensionable salary outside of the LTIP period to see if there are any applicable retroactive increases from either Bill 124 or due to the new collective agreements. This may take some time as the high volume of adjustments, on top of our regular service commitments, is unprecedented.

Started LTIP in 2022-2023 school year or later?

Your pre-LTIP salary adjustment will only include an increase due to your new collective agreement. Your service prior to the 2022-2023 school year (i.e. before your started LTIP) will include any applicable retroactive salary increases for the Bill 124 period.

What does this mean for me?

Your pensionable salary will increase for the affected school years if you worked or received LTIP in those years. This will increase your pension benefit if it falls within your best-five years' average salary. For years that you were on LTIP, you won’t be required to top-up contributions as a result of the increase(s). For years worked, your employer remits contributions on your behalf.

Not directly impacted by Bill 124 retroactive adjustments?

Bill 124 only directly impacts publicly-funded school boards. You won’t receive the retroactive Bill 124 salary increase if you were employed at a designated private school or designated organization in the affected school years identified above.

Any other pensionable retroactive payments will still be assessed once they’ve been reported. Given the unprecedented volume of the Bill 124 related adjustments, on top of our regular service commitments, these will take additional time to process. 

Our contact centre won't have any further information to share with you about retroactive adjustments at this time, so there’s no need to call or email.

The administration of Bill 124 retroactive salary increases for eligible members involves significant effort, representing more than five times the volume of change we typically process each year. We anticipate changes and challenges along the way while we review and process files for:

• More than 160,000 working members with benefit service within the retroactive period
• More than 22,000 pensions put into pay within the retroactive period

We ask for your patience as we work through them all.

Our contact centre won't have any further information to share with you about retroactive adjustments at this time, so there’s no need to call or email.

In June 2019, the Ontario government introduced Bill 124, Protecting a Sustainable Public Sector for Future Generations Act. This legislation capped salary increases for public sector workers to one per cent a year for three years.

In November 2022, an Ontario court declared the legislation unconstitutional. The government appealed the court’s decision. On February 12, 2024, the Ontario Court of Appeal released a decision on the appeal.  

The government has also been in settlement discussions and binding arbitration with various federations and unions to address salary implications of Bill 124. As plan administrators, we’re not part of the negotiation process.

Our contact centre won't have any further information to share with you about retroactive adjustments at this time, so there’s no need to call or email.

Please read our News stories for updates and keep an eye on this page. We’ll update both pages when we have new information to share with you.

Our contact centre won't have any further information to share with you about retroactive adjustments at this time, so there’s no need to call or email.

In 2025, all pensions will receive the full 2.7% increase. The adjustment takes effect in January 2025.

The adjustment is based on 100% of the adjustment in the Consumer Price Index (CPI), a weighted basket of goods and services typically purchased by Canadian households each month.

The method used to calculate the adjustment is prescribed by the terms of the plan and is the same method used by most other major Ontario pension plans, as well as the Canada Pension Plan.

What this means to you

• In January 2025, you’ll receive a pension increase equal to 100% of the annual CPI increase
• If you retire(d) in 2024, your first pension increase will be prorated from your last day of credit in 2024

The adjustment rate depends on three factors:

1. The changes in the cost of living in a given year, as measured by CPI

We use the Consumer Price Index (CPI) because it’s prescribed by the terms of the plan. It’s the most widely-used indicator of price changes in Canada and is considered by Statistics Canada to be a measure of inflation. The CPI represents a weighted basket of goods and services typically purchased by Canadian households each month.

This basket includes food, clothing, housing, transportation and recreation. Some items are given more weight due to costing a higher proportion of household income. For instance, the cost of food generally uses more household income than the cost of recreation. To learn more about the Consumer Price Index, visit the Statistics Canada website.

2. The plan’s funding status

We use inflation protection as a lever to keep the plan sustainable. When the plan has a funding shortfall, smaller cost-of-living adjustments help to bring the plan back into balance. When there’s a funding surplus, inflation levels may be partially or fully restored.

3. When you earned your pension credit

There are three levels of inflation protection and they’re based on when you earned pension credit: before 2010, during 2010 to 2013, and after 2013.

The method used to calculate the adjustment is prescribed by the terms of the plan and is the same method used by most other major Ontario pension plans, as well as the Canada Pension Plan.

We take the following steps to determine the annual cost-of-living adjustment.

Step 1: Calculate inflation factor

We compare the average monthly CPI for the 12 months ending in September to the 12-month average a year earlier. We then divide the two averages to get the inflation factor.

Here's how the factor was determined for the 2025 baseline cost-of-living adjustment:

Step 2: Convert factor to a percentage

To communicate the size of the adjustment, we convert the factor to a percentage. Here’s how the factor is expressed as a percentage, using the 2025 inflation adjustment: (1.027 − 1) × 100 = 2.7%

Step 3: Convert percentage to reflect conditional inflation protection for service after 2009

For pension credit earned after 2009, inflation protection is conditional based on the plan’s funding status. For pension credit earned during 2010 to 2013, it can range from 50% to 100% of the inflation rate. For pension credit earned after 2013, it can range from 0% to 100%. For 2025, the conditional inflation level is 100% for both periods.

The inflation protection that some retirees receive on a portion of their pension is conditional on the plan’s ability to provide it.

Pension credit earned before 2010 is fully protected against inflation, while pension credit earned after 2009 includes conditional, or variable, inflation protection.

No, inflation protection doesn’t get banked. On a regular basis we check our financial health to ensure we can pay pensions for your lifetime and beyond. Some years will be better than others. Our plan sponsors, Ontario Teachers Federation and the Ontario government, adjust inflation protection in times of funding surpluses and shortfalls. Changes in inflation protection levels can only be made when valuation reports are filed with the regulators.

The sponsors have also used surpluses to “boost” pensions for retirees who may have had a year where they received an adjustment less than 100% of the Consumer Price Index (CPI) to the level they would've been at had full inflation protection been provided. In a nutshell, income tax laws prohibit us from repaying you the difference, but with the boost your next cost-of-living increase is calculated on a higher base pension.

If you retire from teaching in 2024, your adjustment will be prorated. You’ll receive the adjustment for the time you were on pension in 2024.

Many pensioners wonder why their annual adjustment seldom matches the rate of inflation reported in the media. Sometimes it'll be higher and sometimes it'll be lower. That's because the media compares the CPI for the current month to the same month a year earlier. We compare the average monthly CPI for the 12-month period ending in September to the 12-month average a year earlier, effectively smoothing the adjustment from year to year.

Increases are capped at 8%. If inflation is greater than 8%, the excess amount is carried forward to a year in which inflation is less than 8%.

The same type of limit applies for pension adjustments in the case of “negative” inflation (or deflation) as with positive inflation.

If inflation is less than 0%, pensions remain at their current levels and the percentage below zero is carried forward to a year in which inflation is positive.

Sign in to your account to see how much your pension has changed over the years as a result of annual inflation adjustments.

Your pension is deposited on the last business day of each month. For 2024, the remaining deposit dates are:

• November 29
• December 31

For 2025, the deposit dates are:

• January 31
• February 28
• March 31
• April 30
• May 30
• June 30
• July 31
• August 29
• September 29
• October 31
• November 28
• December 31

While Canada Pension Plan (CPP) and Old Age Security (OAS) payments are deposited a bit early in December, your Ontario Teachers’ pension will still be deposited on the last business day of the month (December 31).

If you’re an RTOERO member, the annual membership fee is deducted in January. Contact the RTOERO directly with questions about the fee.

If you subscribe to a health insurance plan through the RTOERO (Johnson’s) or Ontario Teachers’ Insurance Plan (OTIP), rates are often adjusted in December or January. Other than deducting premiums each month, we don’t administer your health insurance plan. If you have questions about your coverage or premiums, please contact your health insurance plan directly.

In 2025, all pensions will receive the full 2.7% increase. The adjustment takes effect in January 2025.

The adjustment is based on 100% of the adjustment in the Consumer Price Index (CPI), a weighted basket of goods and services typically purchased by Canadian households each month.

The method used to calculate the adjustment is prescribed by the terms of the plan and is the same method used by most other major Ontario pension plans, as well as the Canada Pension Plan.

What this means to you

• In January 2025, you’ll receive a pension increase equal to 100% of the annual CPI increase
• If you retire(d) in 2024, your first pension increase will be prorated from your last day of credit in 2024

Your bridge benefit will end in the month of your 65ᵗʰ birthday and your pension will be adjusted in January. Why? We provide a bridge benefit, which is intended to supplement your retirement income until age 65 when you’re eligible for an unreduced pension from CPP. If you’ve told us you’re collecting a CPP disability pension, we’ve already adjusted your pension.

You can work directly or indirectly for a participating employer for 50 days in each school year you work following retirement without interrupting your pension.

If you plan on working after retirement, your arrangement to return to work in education directly or indirectly for a participating employer must be made after your pension starts.

A resignation is considered valid only if:

• Your employer confirms acceptance of your resignation without condition
• No arrangement has been made to return to work in education, and
• You've either received, or arrangements have been made to pay, any applicable gratuity

If you provide services for an employer that participates in the Ontario Teachers' Pension Plan

• Let your employer know you're collecting a pension when you accept a job.
• Track the number of days you work.
• Notify us immediately if you work after the month in which you exceed the re-employment limit. We'll suspend your pension for as long as you work, even if you work for only part of a day.

You are. While your employer will report all re-employment service to us, you’re required to track your days and contact us if you plan to work after the month in which you exceed the re-employment limit.

You can work until the end of the month in which you exceed the re-employment limit without affecting your pension. If you continue to work after the month in which you exceed the re-employment limit, even if for only part of a day, you won’t receive your pension for that month. Your pension will resume on the earlier of:

• The month in which you have no re-employment service, or
• September 1 following the school year in which your pension was suspended

Once you start working, you can review your re-employment days. If you believe the number of days shown in your account is incorrect, contact your employer directly.

Notify us immediately if you plan to work after the month in which you exceed the re-employment limit. We’ll suspend your pension for as long as you continue to work.

Yes. Since you exceeded the 50-day limit in April, you can work until the end of April without affecting your pension. If you plan to work any additional days of the same school year, you must notify us and we’ll suspend your pension.

Yes, re-employment rules apply to these types of work arrangements. The definition of “re-employed pensioner” includes all re-employment, teaching or non-teaching, whether done on an employment, self-employment or third-party basis.

Any re-employment for which you’re entitled to compensation counts toward the re-employment limit. This includes any re-employment done directly or indirectly on an employment, self-employment or third-party basis for an employer who participates in the plan.

If you work as a volunteer and the position or duty is normally compensated, you and your employer can’t forgo payment to circumvent re-employment rules.

There are unique re-employment guidelines if you work at faculties of education at Ontario universities, Ontario colleges, Toronto Metropolitan University and ministries of the Ontario government after you retire. Contact us for more information.

If you’re hired on a part-time basis, days count in direct proportion to your contract percentage. For example, if you’re on a 33% contract and work one-third of a day, three days would count as one day of re-employment.

If you’re paid by the hour, or hired for a specific task, check with your employer to determine what constitutes a working day for someone in that position.

Also, be sure to include paid non-working days such as sick days and professional development days when tracking your re-employment service.

You should contact us before you begin working after retirement if you’re unsure about re-employment rules. Where questionable situations are discovered, we’ll consider the work after retirement subject to the re-employment rules if the arrangement is in place to escape the application of the re-employment rules.

Watch our video for an overview on re-employment conditions and how it may affect your pension.

It depends on the start date of your board’s calendar.

Example:

• Board calendar start date for the 2021/2022 school year is August 30, 2021

• Your employer asks you to help set up a classroom on August 27, 2021

If you’ve already exceeded your re-employment limit for the 2020/2021 school year, the set-up day will count toward the 2020/2021 school year. As a result, your pension will be suspended in August and resume in September.

Since employers have varying calendars, make sure to contact your employer to confirm which school year your work days in August fall under.

There's currently no change to the 50-day re-employment limit.

As you may know, we’re jointly sponsored by the Ontario Teachers’ Federation (OTF) and the Ontario government. The plan co-sponsors must agree to any change in plan terms. While we can help you understand the re-employment rules, we're unable to change them. We also can't anticipate when any changes may occur, so our contact centre won't be able to answer questions about potential changes to re-employment rules.

If you don't have an eligible spouse when you start your pension, you're automatically entitled to the 10-year guarantee at no cost. If you die before receiving 10 years' worth of pension payments, we'll pay the balance of the 10 years to your estate in one lump sum.

If you die before retirement with no eligible survivors, your contributions plus interest before 1987 are paid to your estate together with a lump-sum payment representing the commuted value of the pension you accumulated from 1987 until your death.

Options to increase or decrease survivor pensions don’t come into effect until your pension begins. If you die before retirement, your spouse will receive a survivor pension equal to 50% of the pension you accumulated before 1987 and the commuted value of the pension you accumulated from 1987 until your death. The commuted value can be taken either as a lump-sum payment or a pension.

Yes. Reductions for survivor pensions greater than 50% are permanent, even if your spouse predeceases you.

No. Survivor pensions for spouses are provided for life and income from a job, another pension plan or inheritance won’t affect the before-tax survivor pension from Ontario Teachers’.

Not automatically. If a former spouse remains eligible, you can’t designate a new spouse for a survivor pension. If you don’t have an eligible former spouse, you can apply for a new survivor pension and your pension will be reduced to pay for it. Understand options for new spouses.

No. We’re legally obligated to pay survivors directly. If the child is 18 or older, the survivor pension will flow directly to him or her. We deposit payments for a minor with the Accountant of the Ontario Court (General Division) until the child reaches the age of 18, unless someone has become the child’s legal guardian.

A designated beneficiary is the person(s) or organization you have designated to receive benefits only if you die before your pension begins and you don't have an eligible spouse at the time of your death.

Beneficiaries receive a lump-sum payment equal to the commuted value of the pension you accumulated since 1987. Contributions plus interest accumulated before 1987 are refunded to your estate.

The tax we deduct varies, based on government requirements and the information you provided, either at retirement or after. When calculating your deductions, we assume that your Ontario Teachers’ pension is your only source of income and that you qualify for the Basic Personal Exemption, unless you tell us otherwise (by submitting a TD1). Government tax tables can change as often as every six months. If a change affects your pension, we’ll notify you.

You can review or increase the amount of tax deducted from your pension by signing in to your account.

We mail your T4A to you annually at the end of January. You can also get a duplicate online through the Document Centre.

Re-employment income is taxable income. Your employer will remit tax on your behalf and you'll receive a T4 slip which you must claim.

Not necessarily. If you had deductions for support payments to the Family Responsibility Office, the total annual payment is not shown as a note on your T4A. Contact us if you require this amount to complete your tax return.

If you have a portion of your pension paid from the Retirement Compensation Agreement (RCA), you’ll receive a separate T4A for that amount. For tax purposes, the Canada Revenue Agency requires us to issue T4As for the registered pension plan and RCA amounts separately. 

You can allocate up to one-half of your pension income to your spouse for tax purposes. For more information, see Filing your income taxes.

The optimal split in pension requires tax software or some old-fashioned trial and error, and a 50% split isn’t always the best solution. Visit the Canada Revenue Agency’s website to see if you qualify. If you do, consult a tax professional to find the optimal split for you and your spouse

No. We're often asked to reduce the amount of tax withheld at source. Unfortunately, government legislation doesn't allow us to do this. We're required to deduct tax based on 100% of your monthly pension payment.

The Ontario Health Premium is a provincial tax that we’re required to deduct from pensions paid to Ontario residents. We’ll only deduct this tax if your pension is more than $20,000 per year. The premium is included in your total tax deductions in box 22 of your T4A. While you’re required to calculate the premium and enter the amount on your tax return, rest assured the tax isn’t deducted twice.

For more information about the premium, visit the Ontario Ministry of Finance’s website or call 1-866-668-8297. For income tax information, visit the Canada Revenue Agency’s website or call 1-800-959-8281.

No, the Ontario Health Premium can’t be deducted as a medical expense.