Long-term income protection (LTIP) rules for OPP and PEGO

LTIP rules for OPP and members represented by PEGO

On October 24, 2024, the PSPP was amended to change the contribution rules for OPP employees and those represented by PEGO who qualify for Long-Term Income Protection (LTIP). The change means that while such a member qualifies for LTIP, the employer will make both member and employer contributions. This will be the case even after the member reaches their early unreduced retirement date and without regard for the member’s years of pension credit.

The following applies to you if both are true:

You are one of the following:
- Represented by Professional Engineers, Government of Ontario (PEGO)
- An OPP employee represented by the Ontario Provincial Police Association (OPPA)
- An OPP commissioned officer represented by the Commissioned Officers' Association (COA)
- An OPP commissioner or deputy commissioner
You have been approved for LTIP

Can I start my PSPP pension before age 65 if I'm on LTIP?

Yes. You can start your PSPP pension any time after reaching age 55 with an age-based reduction, or you can begin an unreduced PSPP as soon as you meet an early unreduced retirement date under the PSPP. Note that prior to age 65, you must terminate your employment in order to start your pension. For more information, visit Types of retirement and Leaving the PSPP before retirement.

Please note that under many LTIP policies, LTIP payments are offset dollar for dollar by pension payments from the PSPP. Depending on the terms of your LTIP coverage, you may continue to receive LTIP benefits from your LTIP carrier until you reach age 65.

I'm beginning a return-to-work program. Will this affect my PSPP pension benefits?

No, participating in a return-to-work program will not affect your PSPP contributions or the credit you earn while on LTIP. You and/or your employer will continue to make your pension contributions as discussed above, and you will continue to earn your regular pension credit.

If your LTIP payments from Canada Life while you participate in your return-to-work program are insufficient to cover the cost your pension contributions, you may be required to pay your member contributions to OPB directly.

I qualify for Workplace Safety and Insurance Board (WSIB) benefits as well as LTIP. How will my PSPP pension benefits be affected?

Qualifying for WSIB benefits will not affect your PSPP contributions or the credit you earn while on LTIP. Even if you are not receiving any payments from your LTIP carrier, your pension benefits will be unaffected as long as you continue to qualify for LTIP. You and/or your employer will continue to make your pension contributions as discussed above, and you will continue to earn your regular pension credit.

Please note that under many LTIP policies, LTIP payments are offset dollar for dollar for payments from WSIB.