OPB News. Your 2012 Annual Pension Statement. You told us... Get a breakdown of calculations on your Annual Pension Statement online in e-services

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1 Your Pension. Our Promise. OPB News For members of the PSPP April 2013 Get a breakdown of calculations on your Annual Pension Statement online in e-services Your 2012 Annual Pension Statement You may have noticed that your 2012 Annual Pension Statement looks a bit different than previous statements. This year, we ve made a few changes to make it easier for you to review your statement and to reduce duplication between the statement and our other online tools. Here are some highlights: non-personalized information is no longer on your statement (e.g., contribution formula); this information can be viewed on our website at or on the online guide available in e-services detailed calculations for your average annual salary and your pension before/after age 65 are available online using the Pension Estimator (click the figure online to see a detailed breakdown) See the enclosed quick reference sheet or see the online guide on how to view detailed calculations. reduced page count to a maximum of 2 pages (not applicable to Justices of the Peace statements) changed some design specifications to make it easier to read (i.e., all sans serif fonts) Did you know... you can view your Annual Pension Statement (APS) online? You told us... Here s what we learned from you in our recent client surveys: only four out of ten members surveyed knew that OPB provides online tools that help you plan for Retirement. As a member of the PSPP you have access to valuable online financial tools, such as OPB s Buyback Calculator, Pension Estimator, and the Retirement Planner. See Plan for your retirement on page 5 for more on the Retirement Planner. only six out of ten members knew that OPB provides the Pension Estimator, an online calculator that helps you forecast your PSPP pension. OPB s online Pension Estimator lets you run estimates for several different retirement dates and compare estimates. This may help you choose which retirement date will work the best for you, and the pension benefit you can expect at different earnings levels. See Get a real-time pension estimate on page 4 for more on the Pension Estimator. Call a client service representative to register for e-services today and start using OPB s online calculators and financial tools right away! OPB News April 2013 p.1

2 In the news Visit for all the latest and breaking news Investments News Our investment team has been very busy lately moving forward with a number of important initiatives aimed at earning the incremental returns that contribute to the long-term sustainability of the PSPP. Here are some recent milestone achievements: OPB was granted a license to invest in China A-Shares, becoming one of only nine Canadian organizations to do so OPB made its first direct investment in infrastructure, investing in two United Kingdom gas-fired power stations OPB is acquiring ownership in 15 retail properties across Canada, as part of a bid for Primaris Real Estate Investment Trust For details about these and other recent activities, please visit our website and see What s new. If you have a common-law spouse OPB is monitoring a case pending in the courts that may affect a common-law spouse s entitlement to pre-retirement death benefits. In the meantime, if you are separated from your legally married spouse and not divorced, and you also have a common-law spouse whom you want to receive a death benefit, be sure to list your commonlaw spouse as a Designated beneficiary for your PSPP survivor benefits. If your spousal relationship ends, or if you have any questions on how a change in your marital status may affect your PSPP pension, please contact OPB. Learn more about your PSPP pension Coming soon... Webinars! Starting this summer, OPB will offer online webinars on different topics that will help you make informed decisions about your retirement planning. Watch our website for more information about webinars over the next few months. Don t forget to make sure you are signed up for OPB e-alerts so that you are notified when our special topic Webinars are available. p.2 OPB News April 2013

3 Learning about your Plan Open Information Sessions and Lunch n Learns (Webinar or in-person) Register for an Open Information Session Learning about the Public Service Pension Plan (PSPP) will help you make informed decisions about your pension. OPB offers information sessions to active members and their spouses. Sessions are 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. Please register for an information session near you! OPB representatives will be at the sessions to answer any questions you may have. What you will learn: What is OPB S role? How are my contributions calculated? What do I get at retirement? What is CPP Integration? What are my early retirement options? What benefits do my survivors receive? How do inflation adjustments affect my pension? Log in to e-services to register for an Open Information Session near you, or contact one of our Client Relations & Education Officers. Attend a Lunch n Learn scheduled at your Employer site OPB offers presentations to interested groups of members. Your employer sets the date, and we speak with you and your colleagues at your office. Presentations are 1.5 to 2 hours long, with half of that time set aside for questions. Handouts are provided. We also offer Lunch n Learn sessions online in Webinar format. See below to arrange a Lunch n Learn via a webinar presentation. How far will we go? We ve visited members in Guelph, London, Windsor, North Bay, Thunder Bay, Sudbury, in addition to our home base of Toronto. To arrange a presentation, please contact one of our Client Relations & Education Officers, or you can speak with your Human Resources representative. OPB Client Relations & Education Officers: Sally Santiago by telephone at , or by at sally.santiago@opb.ca Anne Hodge by telephone at , or by at anne.hodge@opb.ca or call toll-free at To learn more about your PSPP pension, visit or log in to e-services. OPB News April 2013 p.3

4 Forecast your PSPP pension Calculate with the online Pension Estimator Get a real-time pension estimate Your 2012 Annual Pension Statement provides a snapshot of your pension, providing you with pension estimates based on your information as at December 31, With OPB s online Pension Estimator you can forecast what your PSPP pension may be at retirement in the comfort of your home at a time that fits into your schedule. And the information is in real-time so the information is current as of the day you run it. Your online pension estimate details include: In the past... you would have to request a pension estimate from OPB, wait for the estimate to be processed, and then wait for it to arrive in the mail, or wait for your Annual Pension Statement each year. Today... log in to e-services and forecast your PSPP pension in the comfort of your home. You can run estimates for several different retirement dates and compare estimates. The Pension Estimator shows you a graph and table that compares estimates, which can help you start thinking about which retirement date will work the best for you. With OPB s online Pension Estimator, you can get a real-time pension estimate anytime of the year. average annual salary pension before age 65 (if applicable) pension after age 65 estimated amounts (in dollars) for each survivor pension option Underlined figures in the online pension estimate indicate that you can click on the figure to see a detailed breakdown of how we calculate the amount. Once you ve created your pension estimate, you can use this estimate with OPB s online Retirement Planner to see how your PSPP pension fits into your overall retirement picture (see page 5). p.4 OPB News April 2013

5 How much you ll need in Retirement Find out with the online Retirement Planner Plan for your retirement The Retirement Planner takes retirement planning to a new level. You create a customized and comprehensive snapshot of your overall retirement picture, projecting your retirement income from all sources (including your PSPP pension, CPP and OAS, and your personal savings). The 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 with the RRIF/LIF module by changing assumptions investigate tax impact when splitting your retirement income with the Income splitting module create an expense worksheet to understand your expenses in retirement Key features of the Retirement Planner 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 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 and after taxes, and also provides an incomesplitting calculator to determine whether it is beneficial for spouses to income split. With the online Retirement Planner you can create different financial scenarios, investigate potential tax savings when splitting your retirement income with your spouse, and use the Expense Worksheet to help you calculate your retirement income needs to find out are you are saving enough? If you are retiring within the next 24 months If you are considering retiring within the next 24 months we recommend that you contact Client Services at or (toll-free in Canada & the U.S.A.) to speak to an advisor and receive a formal pension estimate. OPB News April 2013 p.5

6 Will a buyback impact your pension? Find out with the online Buyback Calculator Get a buyback estimate online OPB s online Buyback Calculator lets you create cost estimates to buy back pension credit for non-ops service and other service where your 24-month costing window has closed. With your buyback estimate you can see pension impact (in dollars) of buying back pension credit. To purchase prior OPS service inside your 24-month costing window, please contact OPB to get your buyback quote. Buying back pension credit can help you to: earn a larger PSPP pension, qualify to retire earlier than age 65 with an unreduced pension, and/or qualify to receive insured medical, dental and life insurance benefits during retirement. In the past... you would request a buyback estimate from OPB, wait for the estimate to be processed, and then wait for it to arrive in the mail. Today... log in to e-services and create a buyback estimate in the comfort of your home. The Buyback Calculator shows you how your pension is impacted by displaying pension estimates with purchase of the buyback period and without purchase, so you can think about whether buying back pension credit makes sense for you. You are not obligated to buy back the service for which you create an estimate, so you can create a buyback estimate anytime without any commitment to buy. With the online Buyback Calculator you ll be able to see how buying back pension credit will impact your pension, eligibility for insured benefits, and whether it will help you qualify to retire earlier than age 65 with an unreduced pension. When should you apply to buy back pension credit? It s best to apply as soon as you can. That s because for most eligible periods, the cost of buying pension credit increases over time sometimes significantly. We encourage all members interested in buying back an eligible period of past employment, to apply to buy back pension credit as early as possible. p.6 OPB News April 2013

7 How to start your pension Log in to e-services to Initiate Retirement online When you re ready to Retire Deciding when to retire is an important decision one that can affect the size of your monthly pension payments. As an active member of the PSPP, you can initiate retirement online within six months of your retirement date when you meet age and service requirements for a pension with the PSPP. In the past... you would meet with your Human Resources representative, wait for your termination to be processed, and then wait for confirmation documents to arrive in the mail. Today... you ll log in to e-services, use the online calculators and financial tools such as the Retirement Planner to plan for your retirement. When you re ready to retire, you can initiate retirement online to trigger the process with your employer. When you Initiate Retirement online, you ll see estimates for your pension amounts, whether you qualify for insured benefits and more, to help you decide which retirement date is best for you. When you initiate retirement online, you are presented with a Retirement Notice or Termination of Membership Form (OPB 1012) partially completed which you then print and take to your employer. OPB begins processing your retirement once we receive this form from your employer. Thereafter, you ll receive a Retirement Package in the mail. If you are not yet within six months of your retirement date, please visit our online Pension Estimator to see your retirement options and generate a pension estimate. For more information about retirement timelines and options, please read our booklet, Planning today for tomorrow, available on our website. Update your beneficiaries online It s a good idea to review your beneficiary designations from time to time to ensure they still reflect your wishes. In the past... you would have to complete a long form, mail it to OPB, and then wait for updates to your beneficiaries to be processed. Today... log in to e-services to review your beneficiaries, and make changes to your beneficiaries immediately online. You don t need to fill out a long form, and you make changes as often as you need. Update your contact information online In the past... you would have to complete a form, mail it to OPB, and then wait for updates to your contact information to be processed. Today... log in to e-services to review your contact information, and make updates to your address, telephone, and address immediately online. It s a great and easy way to ensure that your contact information on file with OPB is up-to-date. Please note that your retirement request is not official with OPB until we receive the form signed by your employer. OPB News April 2013 p.7

8 Self service online with e-services. Visit You can do a lot online using OPB s secure e-services. 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 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 speak to an OPB client service representative to register immediately over the phone. Important information for former members of the PSPP As a former (deferred) member of the PSPP it s important that you keep your personal information current and up-to-date with OPB. If you ve received a Deferred Pension Update, a Divested Deferred Pension Update, or a Grow-in Deferred Pension Update, please review your marital status to ensure it is correct and be sure to let us know if and when you change your address. Remember, if we can t find you, we can t pay you when it s time for you to begin receiving your pension! 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