REVISED – Pension enhancements for OTPP members as of January 1, 2018

On January 1, 2018, three decisions by the Ontario Teachers’ Federation (OTF) and the Ontario Government, as joint sponsors of the Ontario Teachers’ Pension Plan (Plan), go into effect; all of which are good news for OTPP members.

The contribution rate for the Plan’s active members will be reduced by 1.1%.

Full inflation protection will be restored for those who retired after 2009. Pensioners who retired after 2009 will receive a one-time increase in January 2018 to restore their pensions to the levels they would have been at, had full inflation protection been provided each year since they retired. They will also receive a slightly higher inflation increase next year for the portion of their pensions earned after 2009. Cost-of-living increases for this portion of pension credit will equal 100% of the annual increase in the Consumer Price Index (CPI), up from the current level of 90%. Pension credits earned before 2010 remain fully inflation-protected.

The early retirement reduction factor has been lowered in some cases for members who are age 50 plus when they cease employment in education after 2017.

“All of this comes as good news for our members,” stated Chris Cowley, OTF President. “We are restoring benefits and reducing contribution rates while ensuring the Plan remains fully funded.”

For more information on these changes, please go to