List of pension plans in Ontario

Pensions serve to provide you with a means of income upon retirement. With the right combination of pension plans, you can live securely and comfortably once you decide to leave the workforce.  

In Ontario – much like in other provinces and territories – workers have an abundance of choices when it comes to pension plans. Some plans are mandated by the government. Others are provided by employers, catering to specific jobs and industries.  

In this article, Benefits and Pensions Monitor gives you a list of the top pension plans in Ontario. We will give you a rundown of how government-sponsored and workplace pension plans work, including the features and benefits of each.  

If you’re a part of the province’s labour force, you can use this guide to compare the different types of pensions available and see which ones best fit your retirement planning strategy.  

How do pension plans work in Canada?  

As mentioned, pension plans are designed to give you a source of income when you retire. Apart from the government-mandated plans, your employer may offer a workplace pension as part of your employee benefits and compensation.  

In most work-provided plans, employers are required to contribute. They may also implement a matching program, where they match the amount an employee contributes.   

You can start receiving income from pension plans in Ontario once you reach age 60, albeit at a reduced rate. To get the full amount you’re entitled to, you must start claiming at age 65, the normal retirement age in Canada. 

In general, there are two types of pension plans: 

1. Defined benefit pension plans (DBPP)   

In a DBPP, both you and your employer contribute to the plan. Employee contributions are made through payroll deductions. The contributions are then invested in capital markets, which make up the pension funds. When you retire, defined benefit pension plans will provide you with a guaranteed retirement income based on your years of employment and earnings.   

2. Defined contribution pension plans (DCPP)  

Unlike in a DBPP, your retirement income in a defined contribution plan is not set in advance. The amount you will receive depends on:  

• how much you contributed to the plan  
• how much your employer contributed on your behalf  
• how much the funds grew over time  

This means that the higher the contributions, the higher the income you will receive upon retirement. A DCPP also allows you to choose where your money is invested, something you can’t do with a DBPP.   

As an employee, you can also access a group registered retirement saving plan (group RRSP) or a pooled registered pension plan (PRPP). You can find out more about these plans by checking out our client education guides. 

Public pension plans in Ontario 

Public pension plans are statutory programs administered by the federal, provincial, and territorial governments. These schemes provide income replacement to contributors and their families upon retirement, or in cases of death and disability.  

The public pension plans listed below are available not just in Ontario, but also across the country. The exception is the Canada Pension Plan (CPP), which is not accessible in Québec. The province runs its own statutory program, called the Québec Pension Plan (QPP), which functions almost exactly the same as the CPP.  

1. Canada Pension Plan 

The CPP operates as Canada’s social insurance program. All employees and their employers, as well as self-employed individuals, are required to contribute to the plan. As mentioned, the CPP covers almost all workers in the country, except those in Québec. 

If you have contributed to the CPP, you can receive monthly payouts when you retire. The Canada Pension Plan also pays your loved ones a benefit if you become disabled or after your death.  

The Canada Pension Plan Investment Board (CPPIB) manages the CPP’s pension funds. At the end of fiscal year 2024, the fund manager boasts almost $594 billion in assets under management. The CPPIB also ranks number one in the country and second in the world in the latest global pension transparency benchmark.   

You can learn more about the Canada Pension Plan, including the eligibility requirements and what benefits you’re entitled to, in this guide.  

2. Old Age Security (OAS) pension 

The OAS pension is a monthly benefit for seniors aged 65 and older who have achieved Canadian legal status and lived in the country at least for the past 10 years. The payments depend on a range of factors, including years of residency and annual income. OAS pensions are taxable.  

You can use this OAS benefit estimator to calculate how much you can receive in monthly payouts.  

3. Guaranteed income supplement (GIS) 

The GIS is an additional monthly pension for low-income seniors. If you qualify for the OAS pension, you may also receive a GIS. Unlike OAS payouts, GIS payments are non-taxable. 

This toolkit provides all the information you need to know about the OAS and GIS. 

Workplace pension plans in Ontario 

Employers in Ontario offer pension plans to help staff prepare financially for retirement. Also called employer-sponsored plans, workplace pensions get their funding from employer contributions and payroll deductions from employee salaries.  

Employer-sponsored pension plans are often transferable, although some may limit transfer to roles within the same industry. If you move jobs throughout your career, it may be possible that you have more than one workplace pension.   

Here’s a list of some of the prominent employer pension plans in Ontario. This is not an exhaustive list. There are several other workplace pensions that employees in the province can access. The list is arranged alphabetically.  

1. Canada Post Corporation (CPC) Registered Pension Plan 

Canada Post is one of the country’s largest federal Crown corporations. It’s also among the biggest employers in Canada. CPC offers eligible staff a range of workplace pensions, including defined benefit, defined contribution, and voluntary savings plans. These plans are delivered through Canada Life.   

 The CPC has more than 105,500 members for its DB pension and over 7,300 members for its DC plan across Canada, including Ontario. It also boasts more than $30.8 billion in assets under management (AUM), according to its most recent financial report.    

2. Healthcare of Ontario Pension Plan (HOOPP) 

HOOPP is considered among the best pension plans in Ontario in terms of benefits. It functions as a multi-employer defined benefit pension plan for the province’s healthcare sector.  

HOOPP has more than 670 participating employers. Over 460,000 active and retired hospital staff, family health teams, foundations, community health centres, and healthcare organizations and service providers benefit from the plan.   

If you’re an HOOPP holder, you can access early retirement options, survivor benefits, and inflation protection at no extra cost. Your contributions are invested in the HOOPP Fund, which is managed by an in-house team of investment experts. For every dollar you receive in pension, 80 cents come from investment returns. The rest comes from member and employer contributions. In 2023, HOOPP reported $112.6 billion in AUM.  

3. Ontario Municipal Employees Retirement System (OMERS) 

OMERS is one of the biggest defined benefit pension plans and fund managers in Canada. The OMERS Primary Pension Plan, which provides retirement benefits to local government workers in Ontario, is considered among the best pension plans in the country.  

Employees eligible for the Primary Plan include those working in Ontario’s: 

• municipalities 
• local boards 
• public utilities 

Non-teaching school board staff also qualify for the plan.  

Primary Plan holders whose earnings exceed the maximum pension allowed can also access a retirement compensation arrangement (RCA). Members of the police force, firefighters, and paramedics, meanwhile, can get supplemental pension plans.   

OMERS has more than 1,000 participating employers and 500,000 active and retired members. In-house investment professionals manage around $128.6 billion in assets, according to the latest OMERS annual report.  

4. Ontario Public Service Pension Plan 

Ontario’s public service pension plan provides retirement income to employees of the provincial government and its agencies, boards, and commissions. The plan includes early retirement options and inflation protection. Members and their families can also access disability and death benefits. The plan has around 41,000 active members. 

The Ontario PSPP can be combined with the Canada Pension Plan.  

The Ontario Pension Board (OPB) manages the pension funds of certain public sector retirees and former employees. In its latest financial report, the OPB disclosed $31.7 billion in AUM.   

5. Ontario Teachers' Pension Plan Board (OTPP) 

The OTPP is one of the largest pension plans in Ontario and across Canada. It is a multi-employer plan jointly sponsored by the Ontario government and the Ontario Teachers’ Federation (OTF).   

The OTPP provides active and retired teachers in the province and their families lifetime pensions. The plan also pays out benefits if the holder dies, becomes disabled, or permanently leaves teaching before retirement. At the last count, the OTPP has about 40,000 contributors, and 310,000 active and retired members.  

The OTPP’s board serves as the pension plan’s investment manager. The Ontario government and the OTF appoint five members each to form the board, who then jointly select the chair. Board memberships are subject to term limits. The OTPP board has around $247.5 billion in assets under management, according to its latest financial report.   

 6. OPSEU Pension Plan 

The OPSEU Pension Plan is a defined benefit plan for Ontario employees in bargaining units represented by OPSEU and other eligible members. It has about 106,000 active and retired members. The plan integrates with the Canada Pension Plan.  

OPTrust manages the funds under the plan. In the latest financials for OPTrust, the fund manager reported around $25 billion in assets under management.   

7. Public Service Pension Plan (PSPP) 

Not exclusive to Ontario workers, the PSPP remains the best pension plan for Canada’s federal public sector employees. The plan provides workers with retirement income and disability benefits. Surviving spouses and eligible children also receive financial benefit when the plan holder dies.  

Apart from the PSPP, separate pension plans are provided for members of the Canadian Forces and the Royal Canadian Mounted Police (RCMP). Canada’s PSPP serves more than 34 million members.   

The Public Sector Pension Investment Board (PSPIB) is a non-agent Crown corporation that manages the assets of public sector pension plans. It is one of Canada’s largest investment managers and operates globally, with clients in Europe and the Asia-Pacific region. In its March 2024 financial report, the PSPIB disclosed $264.9 billion in AUM.   

You can find the complete list of the best pension plans in Canada in this article.  

How can you make the most out of your pension?  

Getting the right combination of pension plans plays a crucial role in achieving financial security once you retire. This is why having a deep understanding of each plan’s key features is necessary to help you maximize the benefits. An experienced pensions consultant can guide you in finding the best pension plans in Ontario.   

If you’re looking for the country’s top retirement planning specialists to help you prepare for your financial future, our Best in Pensions and Benefits Special Reports page is the place to go. Recently, we revealed the five-star awardees for our Top Pension and Group Benefits Consultants in Canada. Find out how these industry experts can assist you in preparing for a secure and comfortable retirement.   

Are there other pension plans in Ontario that you feel should be included in the list? Let us know in the comments.