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If you complete your application online, you will receive a cost quote and payment
options immediately. Otherwise, OPTrust will mail you an Agreement to Purchase Credit form once we have received your complete application, confirmed your eligibility and
calculated the cost. As well as providing you with a quote of your total cost, the
agreement will spell out the available payment options.
Payment options
There are a number of payment options that may be available, depending on your
circumstances and the cost of your buyback. If you apply online, you can select a
payment option, as well as get updated balances of your buyback after you begin
payments.
LUMP SUM PAYMENTS
In most cases, you can pay for your buyback in a lump sum, either by cheque or money
order. Lump sum payments can also be made through a direct transfer from a tax-sheltered
source such as an RRSP. In some cases, a direct transfer from a tax-sheltered
source may be the only payment option permitted under CRA’s rules.
FINANCING OPTION (PAYROLL DEDUCTION)
For buybacks costing more than $500, you may have the option of paying through a
series of biweekly payroll deductions. This financing option is available only to regular
full-time and part-time (not seasonal) employees. If you choose the financing option,
your total cost will include interest as well as the principal cost of your buyback.
If you are eligible for this option, OPTrust will include details of your payment amounts
and duration when we mail your Agreement to Purchase Credit form, or provide you
with payment options online. This will show the amount of your biweekly payroll
deductions based on how long you take to complete your payments. The minimum
payment is $10.00 per pay period and must cover interest charges as well as some
portion of the principal.
COMBINED LUMP-SUM/FINANCING OPTION
Regular full-time and part-time employees may also opt to pay for
buybacks costing more than $500 through a combination of lump
sum payments and payroll deductions. To exercise this option there
must be at least $500 remaining to be financed after the lump sum
payment is made.
OTHER OPTIONS
Members who are on an unpaid leave of absence, including WSIB or
LTIP, or who work on a seasonal or casual basis may be able to make
other arrangements to pay for their buybacks. Options include regular
monthly or quarterly cheques mailed to OPTrust.
Payment time limits
Once OPTrust has provided you with an online cost quote, or an Agreement to Purchase Credit form, there are several time limits that
affect the start and the completion of your payments.
RESPONDING TO YOUR AGREEMENT TO PURCHASE CREDIT
If you complete your LOA buyback online, follow the instructions
and select your payment arrangements as soon as possible. Interest
begins to accrue three months after the date that you obtain your
online cost. If OPTrust mailed your Agreement to Purchase Credit
form to you, then be sure to return your completed agreement form
to us – along with your lump-sum payment or payment instructions
– within 45 days. This will allow us to obtain CRA approval promptly
(if required) and set up your biweekly payment schedule or process
your lump-sum payment in a timely fashion. If you are transferring
funds from your RRSP to pay for your buyback, be sure to complete
OPTrust’s transfer form (OPTrust 2033) and send it to your financial
institution with a copy to OPTrust. For those members who make full
payment within three months of the date we provide the cost quote,
no interest is applied. Members making payment after the first three
months will have interest applied for the entire period the payment
remains outstanding.
If you decide not to complete your purchase, you should check the “decline” option,
sign the form and return it to OPTrust. Online users should indicate if they don’t wish
proceed with the buyback. Even if you decline your purchase, you still have the option
of completing your buyback at a later date, provided you complete payment within the
10 year, three-month time limit.
It is a good idea to retain a copy of your completed Agreement to purchase Credit form
for your records.
COMPLETING YOUR PAYMENTS
Once we provide you your cost quotation, you have up to 10 years and three months
to complete your buyback payments. This period starts three months after the date OPTrust
presents you with your online cost or the date we mail you your original agreement
form.
You can make a lump sum payment for part or all of your buyback cost any time within
this 10-year payment period. Interest will be applied to the outstanding balance after
OPTrust provides you with the cost quotation, unless you make full payment within
three months.
Your credit in the Plan will increase as your buyback payments are received. If you leave
the Plan or retire before your payments are complete, you will have the option to pay
the outstanding balance as a lump sum before you leave your job. If you don’t complete
your purchase within the 10-year time limit — or before you leave the Plan or retire —
you will receive credit only for the paid portion of your buyback.
MISSED/INTERRUPTED PAYMENTS
If you are paying for your buyback through payroll deductions and take an unpaid leave
or are absent on a WSIB or LTIP leave, your payments may be interrupted. If you will be
taking an unpaid leave — or if your payroll deductions are interrupted for any other
reason — you should contact OPTrust to arrange to complete your payments within the
10-year time limit. Your options may include:
- making payments directly to OPTrust during your leave
- making a catch-up payment (including interest) at the end of your leave and resuming your remaining payroll deductions at the original amount
- having OPTrust recalculate your remaining payroll deductions to include the missed amount plus interest.
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