Purchasing credit for the OPS strike:
OPTrust to mail buyback statements to all affected membersThe OPSEU Pension Trust (OPTrust) will mail a special buyback statement and payment option form to every member whose pension credit was affected by the recent strike in the Ontario Public Service, which took place between March 13 and May 5, 2002.
Strikes and pension credit
Members who are absent from work due to a strike or lockout do not make pension contributions or earn credit in the OPSEU Pension Plan.
As a result, members who did not work during the recent OPS strike, did not receive credit for time they missed. Members who worked during the strike period - under an essential services agreement, for example - continued to make contributions and receive credit for the days worked. In determining which days were worked during a strike, OPTrust uses payroll data provided the employer.
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.
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Payment options
The buyback statement will explain the available payment options and include a form members can use to select the option of their choice. Payment options include:
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a one-time payroll deduction, to be taken from the November 21, 2002, pay, or
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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.
Members who do not to complete their purchase under either of these options may complete their purchase by a lump sum at a later date, provided they complete payment within OPTrust's
10-year payment deadline and before terminating membership in the Plan. The
cost of buying back credit for the strike period will rise after the
September 30 deadline, to reflect interest.
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Buyback costs
As is the case with buybacks for unpaid leaves of absence, both the member
and employer each pay a share of the cost of the purchase. The member's and
employer's cost is based on the respective member and employer contribution
rates in effect at the time of the absence from work.
Retiring before
October 31, 2002
Under the "Return to Work Protocol" between OPSEU and the Government of
Ontario, members who retire on an immediate pension on or before October 31,
2002 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, under the "Return to Work Protocol" it signed with
OPSEU.
Members who are planning to retire on
or before October 31, 2002 and have not started the termination process with
their employer should contact OPTrust Client Services at 416-681-6100 or
1-800-637-0024 to confirm their 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:
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making a lump-sum payment no later than
August 16, 2002, or
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having their remaining buyback payments
re-calculated to cover the missed amount.
Members who missed payroll deductions for
a previous buyback during the strike but have not received a statement for
OPTrust should contact our Client Services staff at 416-681-6100 or
1-800-637-0024.
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