Understanding Pension Options During Organizational Changes and Lay-offs

Explore various pension options available when leaving a university job, including considerations for commuted values, future vested pensions, unreduced early retirement, and negotiating retirement dates. Learn about service vs. pensionable service, grow-in rights, bridge benefits, and EI options during lay-offs. Make informed decisions regarding pension plans and employment choices in times of change.

• Pension Options
• Organizational Changes
• Lay-offs
• Retirement Benefits
• Employment Rights

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1. Pension Questions with Org Change and Lay-off

2. Service vs. Pensionable Service Continuous years of service ( Employment Date on your pension statement) Used to calculate the 60/80 factor Pensionable service (how many years you ve paid in) Used to calculate how much money you receive Non-negotiable

3. Pension options on leaving the university Option Pros Cons Take the commuted value as a lump sum with option to direct portion into tax- protected RSP Large amount of money right away and some flexibility with RSPs No guarantee money will last through your lifetime Severed from university no medical or tuition benefits No access to bridge Future Vested Pension - start your pension at 65 (or age 60 with grow in rights) No penalty or reduction on your pension Pension payments until death Waiting a few years with no income from U of T Severed from university no medical or tuition benefits Retire from Active Service Start receiving pension income right away Pension payments until death Eligible for medical and tuition benefits Reduced pension (grow in rights mitigates reduction)

4. Legislated Non-negotiable REDUCES the penalty for retiring early Grow in Rights

5. Unreduced Early Retirement and the Bridge 60/80 factor is non-negotiable Dates of bridge benefit are non-negotiable December 31st2020 April 30th2021.

6. Negotiate dates of retirement Opt for redeployment pool up to 24 months How can we get people to 60/80?

7. Employment / EI Options Option Employment Apply for other jobs at U of T with redeployment status Can work elsewhere at the same time Can work elsewhere Cannot apply to U of T until the end of severance black out period EI Redeployment Pool Eligible for EI Enhanced Severance or reduced severance after time in the Pool Defers EI until end of severance period (temporary COVID measure lay-offs after Sept 27, 2020 don t delay EI for severance) Take severance, retire and are now receiving a monthly pension Can work elsewhere Can take casual work at U of T while receiving pension If you are rehired as U of T Staff- appointed, pension stops and restarts when you retire Not eligible for EI

8. Canada Pension Plan benefit/amount.html https://www.canada.ca/en/services/benefits/publicpensions/cpp/cpp- Government pensions Old Age Security security.html https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-

9. Get pension numbers with different scenarios http://digital.alight.c om/utps/ Get CPP and OAS numbers Homework