It is with great pleasure that I announce the launch of our new defined benefit (DB) plan offering, OPTrust Select, which will offer a secure and reliable retirement solution at a moderate cost for both employers and employees.
Employers can only participate in one schedule of benefits and employees cannot participate in both schedules of benefits at the same time. In addition, employers and employees participating in the existing schedule of benefits of OPTrust are not eligible to join OPTrust Select.
OPTrust Select will provide members with a predictable retirement income and includes the following features:
- OPTrust Select members and employers both contribute to the Plan;
- An annual pension accrual rate of 0.6 of earnings;
- Earnings upgrades and cost of living increases, dependent on the Plan’s funded status and annual Board approval.
OPTrust Select will be targeted to Ontario workplaces in the broader public sector, charitable and not-for-profit groups that do not have workplace DB pension plans but may have a defined contribution (DC) plan, a group RRSP, or no retirement savings arrangement at all.
I want to thank OPSEU, the Ontario government and everyone at OPTrust who made this vision a reality. As the first new jointly sponsored DB product offering for modest income earners in a generation, OPTrust Select speaks to our desire to see more Ontarians benefit from a secure, reliable, stream of income in retirement.
Pension citizenship and greater access to DB plans that provide a steady stream of secure, reliable retirement income for all Ontarians is a top priority and I am proud and confident that OPTrust Select will offer retirement security to more Ontarians. The OPSEU Pension Plan and its members will also benefit from OPTrust Select by creating greater sustainability over the long term through the allocation of risk and operational costs over a broader membership base.
For more information about OPTrust Select, I invite you to visit optrustselect.com. As always, I welcome your thoughts and feedback as we launch this new pension offering.
Yours very truly,
President and CEO