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I took a leave of absence that ended in 1998, but did not
submit a buyback application. Is it too late to buy back this
credit?
Yes. There is a strict 24-month time limit for submitting a buyback
application to OPTrust. You must ensure that we receive your
application within 24 months of the later of:
- the date you first become and continuously remain a member of the OPSEU Pension Plan or the PSPP, or
- the last day of the leave of absence you are applying to buy back.
If you miss the application deadline, you will not be eligible to buy
back credit for your leave.
If I buy back my unclassified service will my employer make
contributions too?
Yes. When you buy back prior non-contributory service with the
OPSEU Pension Plan (or the PSPP or its predecessor), your employer
pays as well. This applies to periods of contract or unclassified
employment.
Your employer also contributes if you buy back credit for an unpaid
leave of absence due to family medical leave, illness and WSIB, or for
a pregnancy, parental or adoption leave. The amount your employer
pays is based on the employer contribution rate for the period you
are buying back.
Member contributions were reduced December 1, 1999 and
returned to the normal rate on December 31, 2004. Will this
affect my cost if I buy back service from this period?
The member contribution rate is used to calculate your cost for some
types of buyback. These include: i) periods of service with the OPSEU
Pension Plan, the PSPP or its predecessor; and ii) unpaid leaves of
absence.
Your cost is calculated using the member contribution rate in effect
during the period you are buying back. So, for periods when the
contribution rate is reduced, your buyback cost will be lower as well.
I applied to buy back my unclassified service when I joined the Plan in 1999,
but couldn’t afford the payments at the time. Can I still complete this purchase?
Yes. As long as OPTrust received your application within the 24-month time limit, you
have up to 10 years and three months to complete your payments. The payment period
starts from the date we mailed you your original Agreement to Purchase Credit form.
If you leave your job or retire, you must complete your payments before you terminate
active membership in the Plan. If you don’t finish your payments within the 10-year
time limit – and before you leave the Plan or retire – you will not get credit for the
unpaid portion of your buyback. To make payment arrangements, please contact
OPTrust Member and Pensioner Services.
My buyback payments are scheduled to continue until 2010, but I’m planning
to retire under Factor 90 in 2007. Can I keep making buyback payments after I
retire?
No. You need to complete your payments before you retire to receive full credit for your
buyback. Otherwise, you will get credit only for the paid portion of your buyback.
Having less credit could affect you in two ways:
- your OPTrust pension will be lower when you retire, and
- your Factor 90 eligibility date will be delayed.
To complete your payments before you retire, please contact OPTrust’s Member and
Pensioner Services.
My job is going to be divested to a non-OPS employer. Can I keep making
buyback payments after this happens?
No. After a divestment to an employer that does not contribute to the OPSEU Pension
Plan, you cannot continue making contributions to the Plan. If you want to receive
credit for the full period you are buying back, you will have to arrange to complete your
payments before or immediately following your transfer to your new employer. Please
contact OPTrust for more information.
Why is my PSPA higher than the cost of my buyback?
Your PSPA is not linked to the cost of your purchase. The PSPA is an estimate, for
income tax purposes, of the value of the additional pension benefit you will receive as a
result of your buyback. PSPAs are calculated based on a formula established by CRA.
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