OPB News. Introducing OPB s Retirement Planner. Accessibility for all. For members of the PSPP. An enhanced view of your overall retirement picture

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1 Your Pension. Our Promise. OPB News For members of the PSPP April 2012 Introducing OPB s Retirement Planner An enhanced view of your overall retirement picture You told us you wanted to understand your overall retirement picture to project your retirement income from all sources: the Public Service Pension Plan (PSPP), government benefits (CPP and OAS) and your personal savings. We are pleased to announce the launch of OPB s Retirement Planner, available in OPB s secure online e-services at The Retirement Planner takes retirement planning to a new level providing you with a customized and comprehensive snapshot of your overall retirement picture. If you are not already registered for OPB s secure e-services, you should do so. Optional modules RRIF/LIF module lets you create different scenarios Income splitting investigate tax impact when splitting your retirement income Expense worksheet calculate your retirement income needs to find out - are you are saving enough? In addition to the above, the Planner provides you with a comprehensive Summary Report. NOTE: The Retirement Planner is available only to active contributing members of the PSPP through our secure online e-services. (i.e., not available to former or retired members.) See next page for more information on services available online. Important Information Inside... Introducing OPB s Retirement Planner ,2,3 An enhanced view of your overall retirement picture Accessibility for all OPB s commitment, and a call for volunteers e-services - What s online Online services available at Changes to the Family Law Act If your spousal relationship ends Pension reform Changes to the Pension Benefits Act Accessibility for all The Accessibility for Ontarians with Disabilities Act, 2005 (AODA) is about eliminating barriers faced by persons with disabilities which prevent them from fully participating in all aspects of society. OPB is committed to ensuring our goods, services and facilities are accessible. In 2012, we will be building a multi-year plan to improve our accessibility to persons with disabilities. To achieve this, we are looking for volunteers who would like to provide comments and feedback on our accessibility efforts. If you are interested in participating, please contact Kim Norton, Director, Compliance, by telephone at or by at kim.norton@opb.ca NOTE: You will not be required to disclose any personal information to participate. OPB News April 2012 p.1

2 Introducing OPB s Retirement Planner For active contributing members of the PSPP A planner for your retirement My Retirement Planner helps you build on customized pension estimates you create using OPB s Pension Estimator (or from your Annual Pension Statement) to: create a snapshot of your overall retirement (including income from all sources) create different scenarios by changing personal assumptions (e.g., split pension income with your spouse) create an expense worksheet to understand your expenses in retirement to find out if you are saving enough today to have the retirement income you need Key features include project your PSPP pension, CPP and OAS see your pension income before and after taxes see how your pension amounts change depending on your chosen retirement date CPP benefit you can choose when you wish to collect CPP (any time between age 60 to age 70, based on new CPP provisions) OAS the Planner will provide warning messages if you are within the clawback range for OAS and after taxes, and also provides an income-splitting calculator to determine whether it is beneficial for spouses to income split. If you need instructions on how to use the Planner, an online guide, Using my Retirement Planner, is available on the Enter My PSPP Data page. You can always call for more information or to discuss your results. To do so, please contact Sally Santiago, Senior Client Relations & Education Officer, at Additional modules Expense Worksheet Use the Expense Worksheet to estimate your retirement income needs using today s dollars (shown as your target salary replacement ratio). Income splitting You can use the Income Splitting module to see how much of a tax Savings Gain is available to you if you split retirement income with your spouse. You can adjust the amount you transfer to see which transfer amount will give you the most savings. Project other income streams (RRSP, TFSA, etc.) the Planner illustrates how changes in investment strategies impact your retirement income (you can choose conservative or aggressive investment assumptions) You can incorporate your spouse s income to get a true snapshot of your household retirement income Calculate projected expenses before and after retirement to determine income replacement ratio Tax planning the tool shows retirement income before p.2 OPB News April 2012

3 A planner for your retirement Additional modules Want to learn more about your PSPP pension? Coming soon Open Info Sessions! Coming soon to a city near you Learn more about your PSPP pension at Open Info Sessions. Sessions will be scheduled after regular business hours so that you (and your spouse) can attend without disrupting your work schedule. You ll have the opportunity to have personalized one-on-one conversations about your PSPP pension and your retirement needs with OPB advisors. About OPB s online services Did you know that you can perform a number of activities online using OPB s secure e-services, including review and update your beneficiaries, address and personal information, and more, online? Did you know that as an active member you have access to valuable financial tools online? Read below to learn more. You ll be able to register for Open Info Sessions online via e-services. Watch for an announcement on our website for more information. We re planning the first session for late spring For more information, please contact Sally Santiago, Senior Client Relations & Education Officer, at e-services - What s online? In addition to the new Retirement Planner, don t forget you have access to e-services you already know, such as: view & update your address view & update your contact information (phone and ) view & update your marital status view & update your beneficiaries track activity on your e-services account view your Annual Pension Statement manage your e-services account the Buyback Calculator to create personal estimates to buy back pension credit the Pension Estimator to forecast what your Public Service Pension Plan (PSPP) pension may be at retirement initiate your retirement (for active members) Address Are you moving, or have you recently moved? Is any of your address information incorrect or not shown? Update your current mailing address online. About future address changes Your address updates are effective as soon as you submit them online. To advise of an address change effective at a future date, please contact OPB Client Services. (continued on next page...) OPB News April 2012 p.3

4 If you haven t already registered for e-services, go to our website at click Login at the top-right corner of the page and follow the steps online, or call an OPB client service representative at or (toll-free) to register immediately over the phone. About OPB s online services (continued from previous page...) Contact information (phone & ) Has your contact telephone number or changed? (Remember, this is the number at which OPB will contact you.) You can update your contact information online. Remember to update your address before you retire or terminate from the PSPP! If you ve registered for e-services using your work address, remember to update your account to your personal address. Marital status It s important that you update your marital status any time it changes because OPB uses your spousal information to administer your pension benefits. Please contact OPB if your spousal relationship ends. Beneficiaries It s a good idea to review your beneficiary designations from time to time to ensure they are still applicable. Review (and update) your beneficiaries if your marital status changes, when you welcome a new child into your family, or if you do not remember who you ve designated as your beneficiaries. Account activity Track activity for your e-services account in each of the last 18 months, or for the last 30 activities. Buyback Calculator Active members can use the Buyback Calculator to create personal estimates to buy back pension credit. Pension Estimator Active members can use the Pension Estimator to forecast what your Public Service Pension Plan pension may be at retirement. Manage your e-services account You can change your password, update your online profile, and sign up for e-alerts. Initiate your retirement online Deciding when to retire is an important decision one that can affect the size of your monthly pension payments. When you initiate retirement online, we show you estimates for your pension amounts, whether you qualify for insured benefits and more, to help you decide which retirement date is best for you. Active members can initiate retirement online within six months of your retirement date when you meet age and service requirements for a pension with the PSPP. Our new Retirement Planner! Don t forget as an active contributing member you have access to OPB s new Retirement Planner a valuable financial tool that helps you understand your overall retirement picture. Annual Pension Statement If you have misplaced your previous Annual Pension Statement (APS), or if you prefer to view your documents online, you can view your Annual Pension Statement online. p.4 OPB News April 2012

5 Changes to the Family Law Act If your spousal relationship ends... The rules under the Family Law Act and Pension Benefits Act on how pensions are valued and divided upon spousal relationship breakdown have changed effective January 1, The new rules apply to agreements signed and dated on or after January 1, Note that division of your pension is NOT mandatory under either rules. You and your former spouse can choose to divide your pension benefits, OR you and your former spouse can make a settlement without divison of your pension. Under the new rules For agreements signed and dated after January 1, 2012 Valuation of your PSPP pension assets on the breakdown of a spousal relationship will be calculated by OPB using formulas set out in the regulations. If you are or were married, you or your spouse or former spouse can apply to OPB for a Statement of Imputed Value (also called a Statement of Family Law Value). This statement includes the value of your PSPP pension for family law purposes and how much is available for division. If you are or were in a common law relationship, only the PSPP member, former member or retired member can apply for the statement. The statement will be provided within 60 days after OPB receives the completed application. The maximum amount that can be divided is 50% of the Family Law Value, based on pension accumulated during the period of your spousal relationship. The decision to divide your pension under the PSPP must be confirmed through a court order, family arbitration award or domestic contract. If you are a member or former member of the PSPP, and you and your former spouse decide to proceed with a division of your pension, then your former spouse is entitled to an immediate lump-sum payment equal to 50% of the Family Law Value. This amount may be transferred to another prescribed pension plan or to a locked-in savings plan (e.g., Life Income Fund [LIF] or Locked-In Retirement Account [LIRA]). If you are a retired member, and you and your former spouse decide to proceed with a division of your pension in pay, then your former spouse is entitled to a portion of your pension, up to a maximum of 50% of the Family Law Value, payable to your former spouse directly from the PSPP. If a pension division occurs, then the pension benefit or the pension in pay of a member, former member or retired member is reduced to take into account the amount paid out to a spouse or former spouse. Only forms approved by the Superintendent of Financial Services Commission of Ontario (FSCO) can be used by applicants for the Family Law Value, and for subsequent communications between OPB, applicants, and spouses or former spouses. Forms are available on the FSCO website at or contact OPB for further information. A Family Law lawyer may also be able to assist you. Under the old rules For agreements signed and dated before January 1, 2012 The old rules will continue to apply to agreements signed and dated before January 1, In particular, please note that the old rules do NOT allow the immediate lump-sum payment option to former spouses of members and former members. If your spousal relationship ends, or if you have any questions on how this change may affect your PSPP pension, please contact OPB. OPB News April 2012 p.5

6 Your e-services. Online at It s easy to update your beneficiaries, marital status, and contact information (address, phone, and ) online using OPB s secure e-services. While you re online, check out other services available to you, such as viewing statements from previous years and tracking activity on your e-services account. Active contributing members to the PSPP can initiate retirement online and take advantage of valuable financial tools, such as the Buyback Calculator, Pension Estimator, and our new Retirement Planner. If you haven t already registered for e-services, go to our website at click Login at the top-right corner of the page and follow the steps online, or call an OPB client service representative to register immediately over the phone. Pension reform Changes to the Pension Benefits Act In the spring of 2010, Bill 236: the Pension Benefits Amendment Act, 2010 received Royal Assent. Bill 236 is the first phase of pension reform in Ontario. It affects different areas with respect to pensions, however not all changes have been put into effect. Keep in mind no changes will be made to the PSPP until after they are officially proclaimed. Some of the changes will affect grow-in rights, divestments, and vesting. Once available, we will give you additional details of changes to the PSPP on our website, and if you have signed up for e-alerts we ll notify you of any updates. Have a question about your pension? We ll help you find the answer. Write to us at... Phone us at or ONTARIO PENSION BOARD Visit our website at KING STREET WEST Send us a fax at SUITE us at... clientservice@opb.ca TORONTO ON M5H 3X6