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Under the OPSEU Pension Plan, members have the option of making buyback
contribution payments through a series of regular payroll deductions. Buyback
contributions made through payroll deduction are tracked and reported using one
of two methods. In both cases, OPTrust calculates the cost, while the employer
is responsible for making the deductions and remitting them to OPTrust on a
biweekly basis.
OPTrust currently administers buyback contribution deductions for OPS employers
that are part of the CORPAY system only. Under this method, OPTrust generates a
deduction file (known as the “DS file”) based on members’ open buybacks and runs
this file against the payroll system during the biweekly payroll process. The
deduction is either completely satisfied or no deduction is taken (this applies
to both the member and employer deduction). The employer does not need to track
or administer any portion of the buyback.
Deduction Methodology: Deductions are requested for all members with active
buybacks regardless of their current employment status (Active, on an LOA or
Terminated). If the member is not paid for the period in question, no deduction
will be taken. OPTrust will then follow up with the member directly to confirm
his or her status and arrange for a catch up payment or the recalculation of the
remaining payments.
While this method is designed for the CORPAY payroll system, the
OPTrust-administered deduction file can be modified to meet other system
requirements.Codes
Only three deduction codes are used in the
DS file for
OPTrust-administered deduction file. This contrasts with the series of
employee
buyback deduction codes used for non-OPS employers. In the
OPTrust-administered file, two of the deduction codes are for member
contributions (054 and 055) while one is for the employer contributions only
(056).
- 054 is used for buybacks where the employee is paying both shares of the cost
(i.e. special or an educational leave)
- 055 is used for buybacks where the employee is paying their share of the cost
(i.e. Non-Contributory buyback)
- 056 is used for buybacks where the employer is matching the cost of the
employee (i.e. Non-Contributory buyback).
Deduction code 054 will always appear by itself as the employee deduction covers
both the employee and employer obligation. The deduction codes 055 and 056 will
always appear together.
A matched buyback does not necessarily mean that the cost for the employee and
the employer are the same, as the cost is calculated based on the member and
employer contribution rates in effect for
the period of service purchased.
All Agencies, Boards, and Commissions that are not part of the CORPAY system
currently use this method for administering buyback contribution payroll
deductions. Under this method, OPTrust provides the employer with directions
regarding the deduction of member and employer contributions via the
OPTrust
1016 form. These contributions are submitted as part of the biweekly
data file. The payment schedule established by OPTrust must be adhered to
throughout the lifetime of the buyback. Any change may adversely affect the
members credit accrual. Employers should not stop the deductions or change the
deduction amount without direction from OPTrust.
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Important! The buyback deduction method used is not at the discretion of
individual Pay and Benefits Representatives. Due to efficiency requirements, the
OPTrust-Administered option may not be available to all employers. For more
information, please contact OPTrust’s Data Management Group.
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Revised March 31, 2004
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