Lecture Notes: Retirement Planning for Teachers

Welcome and Introduction

• Speaker: Miriam, Senior Pension and Benefit Specialist.
• Audience: OCT qualified teachers considering retiring in 3-5 years or sooner.
• Duration: 90 minutes.
• Recording: For training purposes only; not shared online.
• Website: All covered information available online.
• Interaction: Submit questions in chat for Q&A sessions.
• Feedback: Post-presentation survey for improvement.

Agenda Overview

1. Pension Plan Basics
2. Financial Security of the Pension Plan
3. Membership and Retirement Statistics
4. Retirement Planning Factors

Pension Plan Basics

• Administrators: Ontario Teachers Pension Plan.
• Decision Makers: Plan sponsors (Ontario Teachers Federation, Ministry of Education).
• Changes: Historical changes like the 85 factor (retirement age adjustment) and contribution rates.

Financial Status

• Net Assets (2023): $247.5 billion.
• Annual Payments: $7.7 billion in pensions.
• Funding Status: Fully funded for 11 consecutive years.
• Membership: 340,000 members, 184,000 active, 156,000 retired.

Retirement Decision Factors

• Common Concerns: Health, financial security, timing, personal goals.
• Popular Retirement Plans: Travel, relaxation, learning new skills.

Pension Calculation and Retirement Dates

• 85 Factor: Age + Qualifying Years = 85 for unreduced pension.
• Qualifying Credit vs. Credit Years: Determines retirement date and pension amount.
• Pension Formula: 2% x Credit Years x Average of Best 5-Year Salary.
• Early Retirement: Allowed from age 50 with pension reduction based on distance from 85 Factor and age 65.

Online Tools

• Pension Calculator: Customized projections and scenarios for retirement planning.
• Account Registration: Encouraged for access to tools and retirement application.

Additional Considerations

• Tax Planning: Consider effects of multiple income sources on taxes.
• Reemployment Limits: Work up to 50 days in education without affecting pension.

Survivor Benefits

• 10-Year Pension Guarantee: Ensures at least 10 years of pension payments.
• Survivor Percentage Options: Choose between 50% to 75% for spouse; affects pension amount.

How to Retire

• Steps: Apply for pension online and submit resignation to school board.
• Document Requirements: Proof of birth and marital status documents.
• Pension Payment: Monthly, last business day; adjusted for inflation annually.

Conclusion

• Mission: Deliver outstanding service and retirement security.
• Feedback Request: QR code for survey feedback.
• Additional Support: Available through website and direct contact for unique situations.

This summary captures the key points from Miriam's presentation on retirement planning for Ontario teachers, including pension calculations, retirement decision factors, survivor benefits, and procedural steps for retiring. The presentation also emphasizes the availability of online resources and tools to aid in retirement planning.