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OPTrust is launching a new pension model aimed at modest income earners. Called OPTrust Select, it’s designed to offer a secure retirement solution at a moderate cost for both employers and employees.
The launch marks the first new jointly sponsored, defined benefit (DB) product offering for modest income earners in a generation, OPTrust states in a release.
“Research shows that people with a defined benefit pension lead a more fulfilling retirement and in doing so, make greater economic contributions to their communities,” Hugh O’Reilly, President and CEO of OPTrust, is quoted saying. “OPTrust Select brings the advantages of our large scale and investment expertise to more Ontarians who otherwise wouldn’t have access to a DB plan and a secure retirement.”
Features of OPTrust Select include:
• Members contribute three per cent of earnings and employers match the contributions
• An annual pension accrual rate of 0.6 per cent of earnings
• Earnings upgrades and cost of living increases, dependent on the Plan’s funded status and annual Board approval.
OPTrust Select is targeted to Ontario workplaces in the broader public sector, charitable and not-for-profit groups that do not have a workplace DB pension plan but may have a defined contribution (DC) plan, a group RRSP, or no retirement savings arrangement at all.
OPTrust Select will also benefit the OPSEU Pension Plan by creating greater sustainability over the long term through the allocation of risk and operational costs over a broader membership base, according to the release.

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