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Once OPTrust mails the Agreement to Purchase Credit (OPTrust 1017) to
the member, there are several time limits that affect the start and the
completion of the payments.
Responding to the Agreement to Purchase Credit
The member has 45 days to return the completed agreement, along with the
lump-sum payment or other payment instructions. OPTrust will apply for CRA
approval, if required, and process the member’s payment (lump-sum, or set up the
biweekly payment schedule).
If OPTrust does not receive the completed Agreement to Purchase Credit within 45
days from our original date of mailing, we will close the case. In this case,
the member must contact OPTrust if he/she wishes to re-open the file. The member
may ask us to re-open the file at any point provided that the payment is
received within the time limits described below. Depending on the circumstances,
additional interest costs may apply.
Payment Time Limits
There may be a number of payment options available to the member. In each case
the form and timing of the employer payment matches that selected by the member
(lump sum vs. payroll deductions). The employer does not have the option to
prepay the employer portion of the buyback.
The member has 10 years and 3 months from the original mailing date of the Agreement to Purchase
Credit (OPTrust 1017) to complete his or her buyback payments. The
member can make a lump sum payment for any part or all of the buyback cost at
any time within this 10-year, 3-month payment period. Interest will be applied
to any payments received more than three months after OPTrust mails the original
Agreement to Purchase Credit (OPTrust 1017).
If the member leaves the Plan, or retires before the payments are complete, he
or she will be required to pay the outstanding balance as a lump sum. Otherwise,
the member will receive credit only for the paid portion of the buyback.
The exception to this is if the member transfers from the OPSEU Pension Plan to
the PSPP as a result of a change in bargaining unit status. In such cases, the
Ontario Pension Board will honour the existing buyback agreement, and will
continue to accept payments under the original schedule.
Missed/Interrupted Payments
Regular payroll deductions may be interrupted if the member takes an unpaid
leave, or is absent on WSIB or LTIP. In such cases the member should contact
OPTrust to make other arrangements to ensure the buyback is completed within the
10-year, 3-month time limit. Such options may include:
- making payments directly to OPTrust during the leave
- making a catch-up payment (including interest) at the end of the leave, and
resuming payroll deductions at the original amount
- having OPTrust recalculate the remaining payroll deductions following the
leave, to include the missed amount plus interest.
Revised September 3, 2004
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