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The buyback process comprises i) an application from the member and ii) an
agreement between the member and OPTrust.
Depending on the circumstances, the employer may be required to provide one or
more of the following services:
- provide documentation as part of the buyback application process
- pay contributions to the OPSEU Pension Plan for a portion of the buyback cost
- remit the member’s payroll deductions and/or employer contributions to
OPTrust.
The member is responsible for completing and submitting an Application for Past
Service Credit to OPTrust within the Plan’s 24-month application time limit.
The member is responsible for ensuring that any additional information is
submitted as requested by OPTrust. The type of information required depends on
the type of service purchased. In some cases, the employer must provide this
information.
- For historical service with a CORPAY employer from more than 10 years previous
to the current year, the employer is required to complete
and submit OPTrust’s Employment Information (OPTrust 1035) form.
- For prior service with a non-CORPAY employer who contributed to OPSEU Pension
Plan, PSPP, or its predecessor, the employer must complete and submit the
Employment Information (OPTrust 1035) form. OPTrust may contact the employer
directly if further information is required.
- For unpaid LOAs – the employer must have the member complete an Option to Make
Pension Contributions While on a Leave of Absence Without Pay (OPTrust 1025)
form prior to the start of the LOA, and submit a copy to OPTrust. If the member
chooses not to contribute during the leave, and applies for a buyback after the
leave, the Agreement to Purchase Credit (OPTrust 1017) is the only form
required.
- Service with another pension plan – the member is required to provide
additional documentation from the previous employer and/or previous pension
plan.
Once OPTrust receives the complete application, we will mail an Agreement to
Purchase Credit to the member. This form sets out the cost of the purchase and
the available payment options. The member must respond within 45 days of the
OPTrust mailing.
Once OPTrust receives the signed Agreement to Purchase Credit, we will process
the payment based on the payment option selected and employer (payroll method)
involved:
- Lump sum payments: OPTrust will process the payment and issue a tax receipt as
necessary. The employer will be invoiced on a quarterly basis.
- Payroll deductions — CORPAY employers: OPTrust will initiate payroll
deductions for both the member and employer buyback contributions through the CORPAY/OPTrust data interface.
- Payroll deductions — non-CORPAY employers: OPTrust will send an OPTrust
1016 form to the employer, requesting the initiation of payroll deductions and
indicating the required amount for both the member and employer portions of
the payment. These deductions must be remitted every two weeks as part of the
payroll process.
- Monthly or quarterly payments directly to the OPTrust: members may send
post-dated cheques or mail cheques as they become due. OPTrust will process the
payment and issue a tax receipt as necessary. The employer will be invoiced on a
quarterly basis.
OPTrust has assumed responsibility for calculating and reporting to CRA the
pension adjustments (PAs) for some LOA purchases.
For CORPAY employers:
- The LOA must end in the tax-reporting year.
- OPTrust must receive the signed Agreement to Purchase Credit (OPTrust 1017)
before April 30th of the following year.
For non-CORPAY employers (agencies, boards and commissions):
- The LOA must end in the tax-reporting year.
- OPTrust must receive the signed Agreement to Purchase Credit (OPTrust 1017)
before April 30th of the following year.
- The LOA payment must be made by lump sum.
For all other LOAs and for prior non-contributory service where a PA is
required, OPTrust will continue to send a request to the employer to amend the
PA reported on the individual employee’s T4.
OPTrust is responsible for providing the member with a T4A by mid-February for
buyback payments made to the Plan in the previous year for following situations:CORPAY employers:
- OPTrust reports all payroll, monthly, quarterly and lump sum buyback payments.
Non-CORPAY employers:
- OPTrust only reports monthly, quarterly and lump sum buyback payments (i.e.
payments made directly to the OPTrust by the member). Any payroll deductions are
to be reported by the employer on the employer’s T4.
Revised March 2010
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