On the recommendation of the undersigned, the Lieutenant Governor of Ontario, by and with the advice and concurrence of the Executive Council of Ontario, orders that:

Whereas the Government of Ontario provides certain post-retirement insured benefits under Order in Council O.C.162/91 dated January 24, 1991, as amended by Order in Council O.C. 435/98 dated February 18, 1998, to retired public servants and other persons receiving pensions under the Ontario Public Service Employees’ Union Pension Plan (the “OPSEU Pension Plan”) and the Public Service Pension Plan;

And whereas the Government of Ontario announced on February 18, 2014 that it would transition to a cost-sharing model in respect of post-retirement insured benefits for persons retiring on or after January 1, 2017 and change some of the related eligibility requirements;

And whereas the Government of Ontario considers it necessary and advisable to formally implement its announcement and other related changes by further Order in Council;

Therefore, pursuant to the prerogative of Her Majesty The Queen in Right of Ontario and the Crown’s natural person powers at common law to provide for post-retirement insured benefits in the discharge of the Government of Ontario’s executive functions and responsibilities,

  1. - definitions
    1. In this Order,
      • “eligible person” means a person who meets the eligibility requirements set out in subsection 2 (1);
      • “pension” means a pension paid from the Public Service Pension Fund, including a predecessor fund, or from the OPSEU Pension Fund, or from a pension fund established by statute to continue either pension fund;
      • “pension plan” means the plan governing a fund referred to in the definition of “pension”;
      • “unreduced pension” means a pension calculated without reference to the early retirement reduction provisions set out in the Public Service Pension Plan or the OPSEU Pension Plan, as applicable.
    1. For the purposes of the definition of “pension” in subsection (1), the pension must be paid in regular monthly instalments, except in the case of an election referred to in subsection 2(5).
  1. Eligibility and entitlement
    1. The following persons are eligible for the post-retirement insured benefits described in section 3 (optional basic life insurance), as well as in either section 6 (legacy post-retirement benefits plan) or section 7 (alternative post-retirement benefits plan), subject to the terms and conditions set out in those sections:
      1. a person who is receiving a pension, and who prior to January 1, 2017 had credit of at least 10 years in the pension plan under which the pension is paid;
      2. a person who is receiving a pension, and who prior to January 1, 2017 had credit in the pension plan under which the pension is paid in respect of some part of each of at least 10 years of continuous employment;
      3. a person who commenced employment prior to January 1, 2017 with an employer who participates in the pension plan and who is receiving an unreduced pension which commenced effective the month immediately following the month of termination of active membership in the pension plan and who has credit of at least 20 years in the pension plan under which the pension is paid;
      4. a person who commenced employment prior to January 1, 2017 with an employer who participates in the pension plan and who is receiving an unreduced pension which commenced effective the month immediately following the month of termination of active membership in the pension plan and who has credit in the pension plan under which the pension is paid in respect of some part of each of at least 20 years of continuous employment;
      5. a person who commences receipt of a deferred pension payment having terminated membership in the pension plan during the year 1988 or 1989;
      6. a person who is receiving a pension paid in respect of employment that (excluding any credit purchased for past service) first commenced in the period from the 1st day of January, 1987 to and including the 3rd day of November, 1989, and who had attained fifty-five years of age when that employment commenced;
      7. a person who commenced employment prior to January 1, 2017 with an employer who participates in the pension plan and who dies while employed and contributing to the pension plan, if he or she:
        1. met the pension plan credit requirements in clause (a) or (b) as of the date of the death; or
        2. met the pension plan credit requirements in clause (c) or (d) as of the date of the death and would have been eligible under the terms of the pension plan for an immediate unreduced pension.
    1. For the purpose of determining whether a person is an "eligible person" under subsection (1), the periods of credit under the OPSEU Pension Plan or the Public Service Pension Plan, as applicable, that are accrued, purchased or transferred into the OPSEU Pension Plan on or after June 26, 2013 or into the Public Service Pension Plan on or after August 13, 2015, shall be treated in accordance with Orders in Council O.C. 953/2013 and O.C. 1100/2015 respectively, and all references to “Order in Council O.C. 162/91 as amended or replaced from time to time” in those Orders shall be deemed to be references to this Order.
    1. Subject to the payment of premiums, if applicable, post-retirement insured benefits shall be provided to:
      1. the eligible person;
      2. the spouse of the eligible person, if the spouse would have been entitled to receive a benefit had the eligible person continued the employment in respect of which the pension is paid to him or her;
      3. a dependent child of the eligible person, if the dependent child would have been entitled to receive a benefit had the eligible person continued the employment in respect of which the pension is paid to him or her.
    1. If the eligible person is deceased, and subject to the payment of any applicable premiums by the person or persons entitled to receive a pension as a result of the eligible person’s death, the benefits shall be provided to,
      1. the surviving spouse of the eligible person and any dependent children, if the surviving spouse is entitled to receive a pension as a result of the eligible person’s death; and
      2. if there is no surviving spouse, a dependent child of the eligible person, if the dependent child is entitled to receive a pension as a result of the eligible person’s death.
      1. Subsections 2 (3) and (4) do not apply if the eligible person has made a valid election to vary the terms of payment of his or her pension in the circumstances set out in subsection 49 (2) of the Pension Benefits Act, except as provided by clause (b).
      2. Benefits shall be provided under subsection 2 (3) and, until the last day of the month in which the eligible person dies, under subsection 2 (4), if the eligible person provides to the pension plan administrator a release signed by the eligible person and his or her spouse, if any, to continue the benefits until that day.
  1. - optional basic life insurance
  1. An eligible person shall be provided with life insurance of two thousand dollars during his or her lifetime, unless, on or after retiring, that eligible person provides the pension plan administrator with an irrevocable waiver of the entitlement in writing.
  1. - eligible persons commencing receipt of a pension prior to january 1, 2017
  1. Eligible persons who commenced receiving a pension prior to January 1, 2017 are entitled to participate in the legacy post-retirement benefits plan described in section 6.
  1. - eligible persons commencing receipt of a pension on or after january 1, 2017
    1. An eligible person who commences receiving a pension on or after January 1, 2017 may at retirement elect to enrol in one of the following plans:
      1. the legacy post-retirement benefits plan described in section 6 on condition of paying fifty per cent (50%) of the premium costs of the benefits, or
      2. the alternative post-retirement benefits plan described in section 7 at no premium cost to the eligible person.
    1. An eligible person who does not make an enrolment election at retirement will automatically be enrolled in the alternative post-retirement benefits plan.
    1. An eligible person who is enrolled in the alternative post-retirement benefits plan under clause (1) (b) or subsection (2) may, on one occasion only, in December of any year, elect to enrol in the legacy post-retirement benefits plan for coverage commencing January 1 of the following year, on condition of paying fifty per cent (50%) of the premium costs of the benefits.
    1. An eligible person who has elected to enrol in the legacy post-retirement benefits plan under clause (1) (a) or subsection (3) may apply in December of any year to cease to participate in the legacy post-retirement benefits plan and to enrol in the alternative post-retirement benefits plan at no premium cost to the eligible person for coverage commencing January 1 of the following year, and upon such election is no longer eligible to enrol in the legacy post-retirement benefits plan. For clarity, an election to cease to participate in the legacy post-retirement benefits plan is irrevocable.
  1. - legacy post-retirement benefits plan
  1. The legacy post-retirement benefits plan shall provide, subject to clause 5 (1) (a) and subsection 5 (3), supplementary health and hospital insurance benefits and dental insurance benefits, as nearly as may be, on the same terms and conditions as are from time to time applicable to similar benefits for persons who are appointed as public servants pursuant to section 32 of the Public Service of Ontario Act, 2006, other than for a fixed term, pursuant to the collective agreement between the Crown and the Ontario Public Service Employees’ Union relating to employees covered by the Unified Bargaining Unit.
  1. - alternative post-retirement benefits plan
  1. The President of the Treasury Board shall establish an alternative post-retirement benefits plan to be effective January 1, 2017 which shall provide a level of benefits at a premium cost no greater than fifty per cent (50%) of the premium cost relating to the legacy post-retirement benefits plan in effect in 2016, and may revise such plan from time to time, subject to the following conditions:
    1. The level of benefits to be provided under the alternative post-retirement benefits plan shall be reviewed at least every five years to ensure that the premium cost required to provide the benefits under this plan is no greater than fifty per cent (50%) of the premium cost relating to the legacy post-retirement benefits plan that is then in effect.
    2. The alternative post-retirement benefits plan shall be provided at no premium cost to eligible persons who commence receipt of a pension on or after January 1, 2017 and who:
      1. do not enrol in the legacy post-retirement benefits plan at retirement, or
      2. having enrolled in the legacy post-retirement benefits plan at retirement cease their enrolment in that plan and enrol in the alternative post-retirement benefits plan.
  1. - optional enrolment in alternative post-retirement benefits plan
    1. The following persons may, at retirement, enrol in the alternative post-retirement benefits plan on condition of paying one hundred per cent (100%) of the premium costs of the benefits:
      1. a person who commenced employment on or after January 1, 2017 with an employer who participates in the pension plan and who is receiving an unreduced pension which commenced effective the month immediately following the month of termination of active membership in the pension plan and who has credit of at least 20 years in the pension plan under which the pension is paid; or
      2. a person who commenced employment on or after January 1, 2017 with an employer who participates in the pension plan and who is receiving an unreduced pension which commenced effective the month immediately following the month of termination of active membership in the pension plan and who has credit in the pension plan under which the pension is paid in respect of some part of each of at least 20 years of continuous employment.
      3. a person who commenced employment prior to January 1, 2017 with an employer who participates in the pension plan and who is receiving an unreduced pension which commenced effective the month immediately following the month of termination of active membership in the pension plan and who has credit of at least 10 years in the pension plan under which the pension is paid;
      4. a person who commenced employment prior to January 1, 2017 with an employer who participates in the pension plan and who is receiving an unreduced pension which commenced effective the month immediately following the month of termination of active membership in the pension plan and who has credit in the pension plan under which the pension is paid in respect of some part of each of at least 10 years of continuous employment.
    1. If not enrolled in the alternative post-retirement benefits plan at retirement, a person who has met the criteria in clause (1) (a), (b), (c), or (d) may apply, on one of the occasions set out in the following clauses, to enrol in the alternative post-retirement benefits plan, on condition of paying one hundred per cent (100%) of the premium costs:
      1. within 31 days of termination of similar coverage under another plan, for coverage commencing the first of the month following receipt of a completed enrolment form;
      2. in December of any year for coverage commencing January 1 of the following year.
    1. A person who has enrolled in the alternative post-retirement benefits plan under subsection (1) or (2) may apply to cease to participate in this plan upon providing at least two months’ notice in writing and, upon ceasing participation, may not thereafter re-enrol. An election to cease to participate in the alternative post-retirement benefits plan is irrevocable.
    1. For the purposes of determining whether the criteria in clause (1) (a), (b), (c) or (d) are met, the calculation of credit shall be determined in the same manner and subject to the same restrictions as set out in subsection 2 (2).
    1. For the purposes of determining entitlement to the benefits upon enrolment and payment of premiums, the provisions of subsections 2 (3) and (4) apply with necessary modifications.
    1. A person described in subsection (1) shall be provided with life insurance of two thousand dollars during his or her lifetime, unless, on or after retiring, that person provides the pension plan administrator with an irrevocable waiver of the entitlement in writing.
  1. - general
    1. If a collective agreement to which the Crown in Right of Ontario is a party as employer provides for post-retirement insured benefits for eligible persons different from the life insurance and benefits mentioned in sections 3 and 6, those provisions of the collective agreement shall be implemented in place of the benefits mentioned in sections 3 and 6.
    1. For clarity, this Order in Council does not apply to justices of the peace or case management masters.
    1. Nothing in this Order interferes with any rights the Lieutenant Governor in Council may have to amend post-retirement insured benefits from time to time.
  1. - revocations
    1. Order in Council O.C. 162/91 dated January 24, 1991 and its amending order O.C. 435/98 dated February 18, 1998 are revoked.
    1. Order in Council O.C. 1464/2000 dated June 21, 2000 is revoked.
Treasury Board Secretariat

Approved and Ordered: December 07, 2016

Amended by: Order in Council 1125/2021