Keep Your Pension or Take the Lump Sum?

PensionPath is a free pension analysis tool for Ontario public sector employees leaving HOOPP, OMERS, OTPP, OPTrust, PSPP, or CAAT. Enter the numbers from your termination options package and compare all three scenarios in seconds.

Three Scenarios Compared

PensionPath models your pension decision across three options and shows you the lifetime total in today's dollars:

• Keep Your Pension — collect your deferred pension at retirement for life
• Transfer and Invest — move your commuted value tax-free to a LIRA or RRSP
• Cash Out and Invest — withdraw as cash, pay tax, and invest the rest

Supported Ontario Pension Plans

• HOOPP — Healthcare of Ontario Pension Plan
• OMERS — Ontario Municipal Employees Retirement System
• OTPP — Ontario Teachers' Pension Plan
• OPTrust — OPSEU Pension Trust
• PSPP — Public Service Pension Plan
• CAAT — Colleges of Applied Arts and Technology

What is a Commuted Value?

A commuted value is the lump sum equivalent of your future pension payments, calculated by your pension plan's actuary. When you leave an Ontario defined benefit pension plan, you typically have the option to take this lump sum instead of waiting for monthly payments at retirement.

How is the Commuted Value Taxed?

The portion up to the Maximum Transfer Value can be moved tax-free to a LIRA or RRSP. Any amount above that is paid as cash and taxed at your marginal rate. PensionPath calculates this automatically using current Ontario and federal tax brackets.

Free Pension Calculator

PensionPath is completely free. No sign-up required. Enter your age, income, commuted value, and monthly pension amount to see a personalized comparison of all three options.