Staying Connected during Retirement
Q: If I don’t find the answer to my questions, where can I get further information?
A: Please contact the University of Toronto Pension Services (AonHewitt):
- AonHewitt Website
Q: How do I change my pension beneficiary? Are there any restrictions?
A: As an active employee and active member of the University of Toronto Plan, you may change your spouse at your local HR. As a retired member your spousal designation is irrevocable.
Q: Can I continue to work during my retirement?
A: With the trend towards earlier retirement and healthier, longer life expectancy, more and more people are spending time working in retirement. Some reasons retirees chose to go back to work are:
Feeling of purpose
New challenges and experiences
Interest in a field
Even if working in retirement is not an option, volunteering and mentoring may be right for you. In either case, you may find it worthwhile to consider post-retirement employment as part of your overall retirement plan.
Q: What happens if I come back to work at the University of Toronto?
A: Working in retirement can only affect your U of T pension if you work for U of T in an Appointed Position which requires you to re-enroll in the pension plan. If you work for a non-U of T employer while on pension, your U of T pension will continue as usual – it will not be reduced or interrupted.
The rules governing retiring and returning to work are very strict. You cannot receive a University of Toronto pension and accrue service at the same time. Please contact your HR Office for more details.
If you go back to work for U of T after you have retired, there is no impact to your pension if the type of position you return to is one of the following:
- Casual Employee
- Contract Employee
If you are an Appointed Employee and you are re-enrolled in the U of T Pension Plan, your membership can continue till you retire again or turn 71. When the time comes for you to retire for the final time, your pension calculation will be based on your service and earnings for all of your periods of employment, less an adjustment for the pension payments you have already received. If you work past age 71, your U of T pension will begin and you will stop deducting contributions, regardless of whether you continue working.
Note: When we recalculate your pension, we use the plan provisions that are in effect at that time.
Q: If I work post-retirement, will there be an impact to my government income(s)?
A: Employment earnings may have an effect on the retirement benefits you are eligible to receive from the government. For example, your retirement income may consist of your U of T pension and your Canada Pension Plan (CPP) benefits as well as your employment earnings. When you become eligible to collect your Old Age Security (OAS) benefit at age 65, your overall income may surpass the OAS threshold. If that is the case, your OAS benefit may be subject to a “claw back” and you could be obliged to repay some or all of your benefit.
In addition, your employment earnings may affect the amount of income tax you are required to pay each year. Depending on your situation, you may wish to adjust the amount of tax deducted from your paycheques or your pension income by completing and submitting Personal Tax Credits Return forms (available from U of T Pension Services or the Canada Revenue Agency).
Q: How do I keep in touch with the University?
A: Ongoing communications from University of Toronto Pension Services will provide a personal confirmation letter each year showing your pension indexation increase and benefits. When applicable, the following flyers will be added into your retirement package. Some of the possible connections to the University include:
- Access to the Bulletin: News for U of T Staff & Faculty
Retiree Library Privilege Information
- Senior College Centre
You are a great resource since the skills and experience you bring to the University is invaluable. In addition, your involvement is yet another way to strengthen diversity at the University, by expanding the age range of people on campus.
Q: Who do I contact if I have a change in residence?
A: It’s not uncommon for Pensioners to become more mobile after retirement. There are those who relocate to exotic locations or move down south to enjoy warmer winters. Many retirees decide to downsize their homes or move into retirement communities. Regardless of where you go – down the street or across the globe – it’s important to keep in touch with University of Toronto Pension Services so you can continue to receive your pension benefits without undue delays.
Q: What happens if I Winter Abroad “Snowbirds”?
A: If you’re among the “Snowbirds” who winter abroad your pension payment will continue to be deposited into your Canadian bank account. Even if you relocate to another country permanently, you can benefit from the convenient direct deposit service to a Canadian bank – or you can choose to have your cheque in Canadian funds mailed to your foreign address. If you permanently change your address to reflect your foreign location, its worth noting that the income tax deducted from your employment and government pensions may be affected by your new country of residence. If you change your address for temporarily while out of the Canada your tax will not be adjusted. The Canada Revenue Agency http://www.cra-arc.gc.ca/ offers a variety of information that you should investigate before you leave.
Note: For retirees living out of the country:
- No deluxe travel benefit
- Plan provides for drug coverage and other eligible services at Ontario rates
Q: What happens if I have a Permanent Change in Residence? (Non Resident)
A: If you’re leaving Canada permanently, you will continue to receive the direct deposit of your U of T pension. State Street, our pension trustee, does not make direct deposits to banks outside of Canada; therefore you will need to have access to a Canadian bank account. If such an arrangement is not possible, we can mail your monthly pension payment to your foreign address as a cheque in Canadian funds. Your change of residence may have an impact on the tax that is deducted from your U of T pension. A “non-residence” tax may also apply to your CPP and OAS benefits. Be sure to contact the Canada Revenue Agency for details on the tax implications of collecting benefits outside of Canada.
Q: What happens if I move within Canada? (Domestic Move)
A: If you’re moving to an address within Canada, there should be no change to your pension payment as long as your banking information remains the same. You will, however, have to provide us with your new address so that we can continue to send you your confirmation notices and annual income tax slips. If you do decide to switch to a new bank, you must provide us with your updated banking information along with your change of address notification.
Q: What happens if I move to a care facility?
A: Your retirement plan may include the possibility of moving into a long term care facility or senior’s residence. This is considered a change in address, and updated contact information is required. If you have given Continuing Power of Attorney for Property to another individual, this person may eventually become responsible for the management of your bank account and your pension payments. It’s a good idea to provide a copy of Power of Attorney for Property to University of Toronto Pension Services if such an arrangement exists. For information on Power of Attorney, you can contact Public Guardian and Trustee’s office to get a copy of the “Power of Attorney Kit” (with forms). You can call 1-800-366-0335 or 416-314-2800 from the Toronto calling area.
Q: Will I receive a tax slip?
A: In March of each year, University of Toronto Pension Services will send your T4A tax slip to you. It will indicate the total pension paid to you and the tax deducted from your pension during the year. These slips are required for completing your income tax return and filing it with the Canada Revenue Agency.
Q: Is my pension indexed annually?
A: Inflation is the tendency of items to increase in price as time passes. Our pension plan limits the negative impact of inflation by providing inflation protection, also known as indexation. Indexation – annual increases to the amount of a pension payment – reduces the erosion of your pension that inflation causes. The increase is based on changes in the Consumer Price Index (CPI) for Canada, a widely accepted measure of inflation. Each year, as of July 1st, your pension (and your Bridge Benefit from the Pension Plan, if you are receiving one) is increased by an indexation percentage calculated as the greater of two formulas:
Formula #1 = 75% of increase in CPI up to a maximum CPI increase of 8% plus 60% of increase in CPI over 8%
Formula #2 = Increase in CPI minus 4%
University of Toronto Pension Services
Or 416-226-8278 (outside Canada & US) Address: Box 7650 Station B, Toronto ON M2K 3B5
Green Shield Canada
Customer Service & Claims Submissions
Address: 285 Giles Blvd., East P.O. Box 1606 Windsor, ON N9A 6W1
Or 519-739-1133 (outside Canada & US)
Green Shield World Access Centre
Contact this number within 24 hours if hospitalized
World Access Group Identifier #9758
Phone: 1-800-936-6226 (travelling within Canada or the United States) or 0-519-742-3556
Green Shield Conversion Package
Dependent children no longer eligible for benefits – Must apply within 60 days to termination date
Phone: 416-601-0429 or 1-800-667-0429
Canada Revenue Agency
Print tax forms
Public Guardian & Trustee
Get a “Power of Attorney Kit”
The Bulletin: News for Faculty & Staff
Division of Communications
Address: 21 King’s College Circle, Toronto ON M5S 3J3
Joint Membership Plan
Access to Athletic Centre, Hart House & Faculty Club
Senior College Centre (SCC)
Address: 256 McCaul St. Suite 404 Toronto ON M5T 1W5
University Women’s Club of Toronto
University Arts Women’s Club
Contact club’s Vice President of Membership.