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If you work in the Ontario Public Service (OPS), your credit in the OPSEU Pension Plan may have been affected by the recent OPSEU strike, which took place between March 13 and May 5, 2002.
Strikes and pension credit
Members normally earn credit in the OPSEU Pension Plan for periods of "contributory service." However, when you are on strike, your employer does not pay you, and no pension contributions are sent to OPTrust on your behalf.
As a result, if you did not work during the recent OPS strike, you didn't earn credit for the time you missed. If you worked during the strike period - under an essential services agreement, for example - then you continued to make contributions and received credit for the days you worked. In determining which days were worked during a strike, OPTrust uses payroll data provided by your employer.
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Buying back strike service
To receive pension credit for strike periods, members have the option of purchasing, or "buying back," the period of missed service after they return to work.
In mid-August, OPTrust will mail individual statements to every member who missed credit due to the recent OPS strike. This statement will show the details of the service the member missed and the cost of buying back credit for the strike period.
For a member who was away from work for the whole strike period and whose salary is $43,000 per year, the buyback cost is approximately $160.
As your employer, the Government will also pay its share of the cost of your buyback.
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Payment options
The buyback statement will also explain the available payment options and include a form members can use to select the option of their choice. Payment options include:
- a one-time payroll deduction, to be taken from the November 21, 2002, pay, or
- a single, lump-sum payment, to be made by cheque or money order and sent directly to OPTrust.
To choose the payroll deduction option, members must return the signed form by September 30, 2002.
Members who want to pay by lump sum must also return their option form, along with their payment, by September 30 to complete the buyback at the quoted cost. The cost of purchasing by lump sum will rise after the September 30 deadline, to reflect interest.
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Why credit matters
The amount of credit you have in the OPSEU Pension Plan is important in several ways:
- It is a key factor in calculating the amount of your OPTrust pension when you retire - the more credit you have, the higher your pension.
- It is used in determining your eligibility for OPTrust's
early retirement options, including Factor 80, Factor 90 and the 60/20
option.
- It is used to determine whether you are eligible
for post-retirement health and dental benefits, provided by your employer.
As a result, buying back the credit you missed during
the strike could make a big difference to your pension and your retirement.
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Planning to retire by October
31?
To receive credit for the strike period, members must normally complete
their strike buyback before they leave the Plan or retire.
An exception has been made for members who retire on
an immediate pension on or before October 31, 2002. Under the "Return to
Work Protocol" between OPSEU and the Government of Ontario, these members
are not required to purchase credit for the strike period. Instead, the
Government has agreed to pay both the members' and the employers' cost for
purchasing this service.
If you are planning to retire on or before October
31, 2002, please contact OPTrust Client Services at 416-681-6100 or
1-800-637-0024 to confirm your eligibility and make the necessary
arrangements.
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The OPS strike and missed
buyback payments
The recent OPS strike has also had an effect on
members in the OPS who were paying for a previous buyback through
payroll deductions.
During the strike, buyback payroll deductions
were suspended for all OPTrust members in the Ontario Public Service,
whether they were on strike or not. As a result, more than 2,000
members missed four biweekly buyback deductions.
At the end of June, OPTrust sent these members a
special statement showing the amount of the missed deductions and
outlining the available options for making up the missed payments. In
most cases, members have two options:
- making a lump-sum payment no later than
August 16, 2002, or
- having their remaining buyback payments
re-calculated to cover the missed amount.
If you missed payroll deductions for a previous
buyback during the strike but have not received your statement, please
call us. |
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