What you need to know about the loss-of-retirement-income benefit
The loss-of-retirement-income benefit helps replace retirement income lost due to work-related injury or illness once recipients turn 65. It supplements other retirement income that you may receive, and is not meant to be the main source of your income.
If you are under 64 years of age on the date of a workplace injury or illness and have received loss-of-earnings or future-economic-loss benefits you are eligible to receive the loss-of-retirement-income benefit.
When you reach age 65 or if you pass away of natural causes before you turn 65, we will pay you or your dependents a loss-of-retirement-income benefit based on:
- the amount set aside for you, plus
- any amount you contributed (loss-of-earnings recipients only), plus
- any investment income that the contributions earned
If you pass away before age 65 but your death comes as a result of your injury, your dependents will receive survivors' benefits (instead of the amount that we had set aside and the investment income earned on that portion).
If you have no dependents, your estate will receive any money that you contributed and its investment income.
Income you may receive from other plans (such as the Canada Pension Plan or an employer pension plan) does not affect your loss-of-retirement-income benefit.
Frequently asked questions
How are loss-of-retirement-income fund contributions determined?
If you received a future-economic-loss benefit, it was because your injury or illness happened between January 2, 1990 and December 31, 1997. The WSIB made contributions to your loss-of-retirement-income fund equal to 10 per cent of every future-economic-loss payment.
If you received a loss-of-earnings benefit, it was because your injury or illness happened after January 1, 1998. The WSIB made contributions to your loss-of-retirement-income fund equal to five per cent of each loss-of-earnings payment beginning in the 13th month after first receiving the loss-of-earnings benefit. You also had the option to voluntarily contribute five per cent of every subsequent loss-of-earnings payment toward your loss-of-retirement-income fund.
We place this money in an investment fund for your retirement. At age 65, you are entitled to the amounts contributed and the investment income earned.
There is no loss-of-retirement-income benefit for payments related to permanent disability payments (pre-1990 injuries/illnesses), non-economic loss payments, or health care benefits.
How will I receive my loss-of-retirement-income benefit?
About two months before you turn 65 you will receive a letter from our third-party vendor, Buck, to the current address we have on file for you advising that you will be receiving your loss-of-retirement-income benefit after you turn 65.
You will receive your loss-of-retirement-income benefit payment as a lump-sum cheque unless you are actively receiving future-economic-loss or loss-of-earnings benefits through direct deposit two months before your 65th birthday. Your loss-of-retirement-income benefit will be paid directly into the same bank account you receive your future-economic-loss or loss-of-earnings benefits if you have signed up for direct deposit.
You can easily sign up for direct deposit through our secure online services. To get started you’ll need your claim number and personal identification number (PIN) which we can send to you. Learn more about direct deposit or call us at 1-800-387-0750 for more information.
You can update your direct deposit information at any time through our online services or by calling us at 1-800-387-0750. If you’ve made changes to your bank account information after turning 64 years and 10 months old, please call Buck at 1-866-272-2813.
How do I know how much is in my loss-of-retirement-income account?
The amount of your loss-of-retirement-income benefit is dependent on the balance in your loss-of-retirement-income account on your 65th birthday. Your account balance includes the amounts contributed to your loss-of-retirement-income account and the investment income earned.
Our third-party vendor, Buck, sends you annual statements. Your statement provides details about your prior year-end account balance. The amounts in the annual statement are estimates only. We will verify the account balance is accurate before we pay the loss-of-retirement-income benefit.
Please call us at 1-800-387-0750 if your address has changed so we can mail your statements to the correct address.
How is the loss-of-retirement benefit paid?
We pay loss-of-retirement income benefits as either a lump sum or annuity. Most people will receive their loss-of-retirement-income benefit as a lump-sum payment.
If we pay your loss-of-retirement-income benefit by cheque, it will be made payable to you according to your name and address on file. Please call us at 1-800-387-0750 if your address has changed or complete the confirmation of information form provided by our third-party vendor, Buck, about two months before you turn 65.
You will likely receive your loss-of-retirement-income benefit payment approximately four to eight weeks after your 65th birthday, as long we have received all required documentation from you. We will let you know if there are any outstanding issues with your claim or loss-of-retirement-income benefit that may result in processing delays.
What documents does the WSIB accept as proof of name change?
You will have to provide documentation if any part of your name is different from what we have on file, whether it’s first, middle or last name.
We accept a copy or photo of any one of the following documents:
- all marriage certificates
- adoption papers
- divorce order
- annulment order
- marriage separation agreement
- legal name change document
- other documents the Ontario government issues when a name is changed
Can I receive my loss-of-retirement-income benefit before I turn 65 years of age?
No. We cannot release loss-of-retirement-income funds before you turn 65. Loss-of-retirement income benefits are a compensation benefit and are subject to the Workers’ Compensation Act and the Workplace Safety and Insurance Act, which states that the benefit is payable once an eligible recipient turns 65 years or upon death. Loss-of-retirement-income benefits are not considered a pension under the Pension Benefits Act and the unlocking provisions, such as financial hardship, of the Pension Benefits Act do not apply.
Can I transfer my loss-of-retirement-income account to an RRSP?
No. We pay the loss-of-retirement-income benefit directly to you after you turn 65. Once you receive the money, you may invest it any way you choose.
Is the loss-of-retirement-income benefit taxable?
No. WSIB benefits are not taxable. However, you must report your WSIB income in your income tax returns. For each year that you receive WSIB benefits, we will send you a T5007 Statement of Benefits.
May I receive more than one retirement benefit at a time?
Yes, the loss-of-retirement-income benefit is only one of a variety of income sources you may receive.
The loss-of-retirement-income benefit is independent of any other source of income or retirement benefit. You’ll receive your loss-of-retirement-income benefit regardless of other sources of income or retirement benefits you may be receiving such as other government pensions, assistance, company pension plans etc.
While any other retirement benefit you receive will not have an impact on your loss-of-retirement-income benefit, you may want to contact the Canada Revenue Agency to verify whether or not the loss-of-retirement-income benefit will affect your other retirement benefits.
If I continue to work past age 65 what impact will this have on my loss-of-retirement-income benefit?
Ongoing earnings and income past 65 do not affect the payment of the loss-of-retirement-income benefit. We don’t make any additional loss-of-retirement income contributions to people who have new workplace injuries after they turn 64.
What happens if I pass away before turning 65?
If you pass away before turning 65, your loss-of-retirement income-benefit will be paid to the first applicable category as follows:
- surviving spouse who was cohabiting with you at the time of your death
- living dependent children (in equal shares)
- other living dependents (in equal shares)
- designated beneficiary (only for injuries or illnesses on or after January 1, 1998)
- your estate
It is important you notify us of any changes to spouses, dependents and beneficiaries by calling us at 1-800-387-0750.
How do I name or change a beneficiary?
If the date of your injury or illness occurred from January 1, 1998 onwards and you would like to change or update your beneficiary profile, you will need to complete a beneficiary form and send it to us. Please contact us at 1-800-387-0750 to receive a beneficiary form. You can submit your completed form through our online services.
What do I do if my address or telephone number changes?
If your contact information changes or will change, please call us immediately at 1-800-387-0750 and provide your claim number to ensure your address or telephone number is updated. Please note, creating or updating an online services account will not change the contact information we have for you on file.