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Members who take an unpaid LOA for special or educational purposes that
is approved by their employer have the option of continuing to contribute to the
Plan during the leave. As with other unpaid LOAs of more than one month, the
member and employer must complete and submit OPTrust’s Option to Make Pension
Contributions (OPTrust 1025) form before the start of the leave.
For special and educational leaves, the employer does not match the
contributions paid by the member. Instead the member pays the full cost of
pension contributions for the leave. This amount is based on:
- the member’s salary
- the length of the LOA, and
- the member contribution rate plus the employer contribution rate for the
period.
A self-funded leave is considered a special leave of absence for pension
purposes. As a result, if the member chooses to contribute during the leave, he
or she must pay both the member and employer share of pension contributions
during the period of absence from work. In this case, contributions continue to
be deducted at the member’s full time salary rate, even though the member may be
receiving a reduced wage for the period prior to and during the leave.
Revised September 3, 2004
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