• OPTrust buyback communications
• New Annual Buyback Statement
• The 10-year buyback payment time limit letter
• Buybacks and employee T4 forms

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OPTrust buyback communications

New Annual Buyback Statement for members
 OPTrust is introducing a new Annual Buyback Statement for members who are purchasing past service credit on an ongoing basis. The statement will give members a report on the status of their buyback, initially as of December 31, 2001, and annually thereafter.

Information contained in the Statement includes:

• the number of years of credit being purchased

• the total cost

• the principal, interest and total payments made in 2001

• the balance outstanding at year-end

The new statement will also help members track the costs - and the benefits - of their buyback as it progresses. If members are interested in paying off their balance, they should contact OPTrust directly to obtain a "balance of arrears calculation".

Members who are currently buying back credit will also receive a 2001 Annual Pension Statement (APS) to be mailed by June 30, 2002. Starting with the 2001 APS, estimates of the members' earned credit and earned pension will reflect only the paid portion of any buybacks, as of December 31, 2001. However, the APS will still provide projected pension estimates that assume the member will complete his or her purchase.

OPSEU Pension Plan members who currently have an active buyback will receive their statement during the week of March 4-8, 2002.

The 10-year buyback payment time limit letter
In early March, OPTrust will be mailing a letter along with the Request for a review of the status of my buyback form, to all members reminding them of the buyback time limits that apply to purchase past service credits.

The opportunity to complete buyback payments applies to members who applied within the 24-month deadline but

• did not sign and return their Agreement to Purchase Credit form

• initially declined the agreement to purchase

• decided to buy back only part of the period they applied to purchase, or

• signed an agreement but chose not to complete some or all of their payments.

To ensure that all eligible members have the opportunity to complete their purchase, OPTrust has established a transitional payment deadline of June 30, 2002. This deadline only applies to members whose 10-year payment period will expire on or before this date. As a result, if members submitted a buyback application after January 1, 1990, and within the 24-month deadline, payments can be completed by the later of

• June 30, 2002, or

• 10 years plus three months from the date of mailing the original Agreement to Purchase Credit form.

All interested members must contact OPTrust to confirm if they are eligible to purchase past service credit and make arrangements to complete their payments.

Buybacks and employee T4 forms
The information reported on the Annual T4 Supplementary Forms in Box 20 - registered pension plan contributions - is inadequate for members purchasing pre-1990 service in the OPSEU Pension Plan. As a result, the Canada Customs and Revenue Agency (CCRA) requires that members' T4 Forms identify pre-1990 past service contributions. They must be identified according to the CCRA's definition of While a Contributor or While Not a Contributor.

By now, all participating Employers should have received OPTrust's summary listing information for the more than 1,200 members who are currently purchasing pre-1990 past service, paid through biweekly payroll deductions. If any of your employees fall into this category, CCRA requests that this identification of past service contributions be included as a notation in the footnotes section on the form. To do this, you can refer to the OPTrust summary listing.

Unfortunately, this requirement will exist as long as there are members who continue to purchase pre-1990 service. However, we are investigating ways to automate this service, to make processing T4s easier for Employers in the future. If you have any questions, please contact OPTrust.

This employer update is intended to provide participating employers with news and information about the OPSEU Pension Plan. It does not create any rights to benefits not provided for in the actual terms of the Plan. In the event of any conflict or omission, the legal documents of the OPSEU Pension Plan will govern in all cases. Members who have questions about their pension benefits should contact OPTrust directly.

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