|
|
 |
This category of service includes employment in the Ontario Public Service (OPS)
or any other employer that participated in the OPSEU Pension Plan, the PSPP, or
its predecessor. This service falls into two types:
- Non-contributory service: This type of service is for periods when the
member and employer made no pension contributions. This includes contract,
unclassified and/or seasonal employment when the individual was not a member of
the Plan.
Strikes and lockouts are also considered non-contributory service if employee
contributions were not made during the period of the work stoppage.
- Prior contributory service: This type of service is for periods when the
individual was a member of the OPSEU Pension Plan, the PSPP or its predecessor.
In this case, the member would have previously terminated his or her membership
and may have either received a refund of contributions or transferred the
entitlement out of the Plan.
In certain cases, periods of employment are not considered creditable service
for pension purposes. For example:
- Seasonal employees cannot buy back credit for the time between periods of
seasonal employment (hiatus).
- Members are not eligible to buy back credit for periods of disciplinary
suspension without pay.
When a member takes a leave of absence (LOA) without pay greater than one month,
and chooses not to make pension contributions while on leave, the member may be
eligible to buy back credit for the period after the leave ends.
The Income Tax Act limits the total amount of credit an individual can buy back
for post-1990 unpaid leaves of absence to five years, plus an additional maximum
three years for pregnancy, parental and adoption leaves.
Under the Plan, contributions for an unpaid LOA of one month or less are
mandatory and are deducted automatically by the employer. Please ensure that
these periods are recorded as leaves of absence in your communication to us to
enable us to administer Canada Revenue Agency (CRA) rules.
If the unpaid leave is longer than one month for illness, WSIB, pregnancy,
parental, adoption, special or educational purposes, the member has the option
of making contributions while on leave. If the member chooses not to continue
contributions during the LOA, he or she may apply to buy back credit for the
leave after returning to work, subject to the Plan’s 24-month application time
limit.
Contributing During the LOA
Before commencing an unpaid leave of longer than one month, the member must
complete OPTrust’s Option to Make Pension Contributions While on Leave of
Absence without Pay (OPTrust 1025) with the employer. This form is used to
indicate whether or not the member wishes to make contributions during the
leave. In order to calculate the contribution amounts, OPTrust must receive this
form before the leave commences.
|
|
|
|
|
|
|
|
|
|
Important! Pregnancy, Parental and Adoption Leaves: Under
Ontario’s Employment Standards Act there are specific rules concerning
pregnancy, parental and adoption leaves. Since November 18, 1990, both the
member and the employer are required to make contributions for these leaves,
unless the employee elects in writing not to contribute. During these leaves,
contributions can be deducted from the Supplementary Unemployment Benefit (SUB)
allowance.
|
|
|
|
|
|
|
|
|
|
|
For pregnancy, parental or adoption leaves where a portion of the leave is to be
paid through the SUB allowance, the employer must clearly indicate on the
OPTrust 1025 form the period for which the SUB payment will apply. In addition,
the form must contain the appropriate employer signature and contact
information. Forms submitted directly to us by members without an employer
signature authorizing contribution deductions from the SUB allowance will be
returned to the employer for authorization.
WSIB: If the member is off work due to a workplace injury and has applied for WSIB benefits, contributions to OPTrust will continue as long as the member is
still paid by the employer. If the member is paid directly by WSIB, the member
must indicate whether or not he/she will continue to make contributions to OPTrust
by completing the form Option to Make Pension Contributions While on Leave of
Absence without Pay. If the member chooses not to continue contributions, he or
she may buy this period back after the leave ends, subject to the normal
24-month application time limit.
|
|
|
|
|
|
|
|
|
|
Note! Exception: A full-time employee who has been granted approval to
regularly take part time off is not eligible to buy back this time (i.e. if the
member works less than 100% they cannot purchase the portion they did not work).
|
|
|
|
|
|
|
|
|
|
|
This category includes service with an employer that did not contribute to the
OPSEU Pension Plan, the PSPP or its predecessor. To be eligible, the individual
must have been a member of a registered pension plan provided by a previous
employer. Under CRA rules, certain restrictions may apply. Members should
contact OPTrust directly for further details.
|
|
|
|
|
|
|
|
|
|
Note! In some cases, members may be eligible to transfer their
credit from their previous employer’s pension plan directly to the OPSEU Pension
Plan under a “reciprocal transfer agreement.” Very strict time limits apply. Members should contact OPTrust
directly regarding specific agreements and eligibility as soon as they join the
Plan. For more information, see the section on
Enrolling a Member.
|
|
|
|
|
|
|
|
|
|
|
Revised September 3, 2004
|
 |
 Under the OPSEU Pension Plan, there are several categories of past
service that members may apply to buy back. |
|
| For more information on
Leaves of Absence and the OPSEU Pension Plan, please refer to the
section on Leaves of Absence.
|
|
|
