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Under the OPSEU Pension Plan, members have the option of making buyback
contribution payments through a series of 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 WIN 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 WIN payroll system. 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 WIN payroll system, the
OPTrust-administered deduction file can be modified to meet other system
requirements. Please contact OPTrust’s Data Management Group for futher details.
Codes
Only three deduction codes are required to identify buyback contributions.
- 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).
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 employers that are not part of the WIN 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 or a secure Employer Site message. 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
member's credit accrual. Employers should not stop the deductions or change the
deduction amount without direction from OPTrust.
Revised April 2013
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