Procedures - Buybacks

posting date Revised: February 1, 2022 print page Print this page Email link to page Email the link

The buyback process comprises i) an application from the member and ii) an agreement between the member and OPTrust.

Depending on the circumstances, the employer may be required to provide one or more of the following services:

  • provide documentation as part of the buyback application process
  • pay contributions to the OPSEU Pension Plan for a portion of the buyback cost
  • remit the member’s payroll deductions and/or employer contributions to OPTrust.
1. Member submits a buyback application

The member is responsible for completing and submitting an Application for Past Service (OPTrust 1036) form to OPTrust within the Plan’s 24-month application time limit.

Leaves of absence

The member is responsible for completing and submitting an  Application for Past Service (OPTrust 1036) form to OPTrust within the Plan’s 24-month application time limit.

Temporary part-time work arrangements

The member is responsible for submitting the Temporary Part-time Work Arrangement Contribution/Buyback Application (OPTrust 1030) form to their employer. The employer is responsible for completing page 2 of the OPTrust 1030 form and submitting the completed form to OPTrust.

2. Additional information may be needed to complete the application

The member is responsible for ensuring that any additional information is submitted as requested by OPTrust. The type of information required depends on the type of service purchased. In some cases, the employer must provide this information.

  • For historical service with a CORPAY employer from more than 10 years previous to the current year, the employer is required to complete and submit OPTrust’s Employment Information (OPTrust 1035) form.
  • For prior service with a non-CORPAY employer who contributed to OPSEU Pension Plan, PSPP, or its predecessor, the employer must complete and submit the Employment Information (OPTrust 1035) form. OPTrust may contact the employer directly if further information is required.
  • For unpaid LOAs – the employer must have the member complete an Application to Contribute for an Unpaid Leave of Absence (OPTrust 1025) form prior to the start of the LOA, and submit a copy to OPTrust. If the member chooses not to contribute during the leave, and applies for a buyback after the leave, the Agreement to Purchase Credit (OPTrust 1017) is the only form required.
  • For temporary part-time work arrangements – the employer must complete page two of the Temporary Part-time Work Arrangement Contribution/Buyback Application (OPTrust 1030) form and submit the form to OPTrust.
  • Service with another pension plan – the member is required to provide additional documentation from the previous employer and/or previous pension plan.
3. Member completes the Agreement to Purchase Credit (OPTrust 1017)

Once OPTrust receives the complete application, we will send an Agreement to Purchase Credit to the member. This form sets out the cost of the purchase and the available payment options. The member must respond within 45 days.

4. OPTrust processes the member’s payment option

Once OPTrust receives the signed Agreement to Purchase Credit, we will process the payment based on the payment option selected and employer (payroll method) involved:

  • Lump sum payments: OPTrust will process the payment and issue a tax receipt as necessary. The employer will be invoiced on a quarterly basis.
  • Payroll deductions — CORPAY employers: OPTrust will initiate payroll deductions for both the member and employer buyback contributions through the CORPAY/OPTrust data interface.
  • Payroll deductions — non-CORPAY employers: OPTrust will send an OPTrust 1016 form to the employer, requesting the initiation of payroll deductions and indicating the required amount for both the member and employer portions of the payment. These deductions must be remitted every two weeks as part of the payroll process.
  • Monthly or quarterly payments directly to OPTrust: members may send post-dated cheques or mail cheques as they become due. OPTrust will process the payment and issue a tax receipt as necessary. The employer will be invoiced on a quarterly basis.
5. OPTrust initiates PA filing

OPTrust has assumed responsibility for calculating and reporting to CRA the pension adjustments (PAs) for some LOA and temporary part-time work arrangement purchases.

For CORPAY employers:

  • The LOA or temporary part-time work arrangement must end in the tax-reporting year.
  • OPTrust must receive the signed Agreement to Purchase Credit (OPTrust 1017) before April 30th of the following year.

For non-CORPAY employers (agencies, boards and commissions):

  • The LOA or temporary part-time work arrangement must end in the tax-reporting year.
  • OPTrust must receive the signed Agreement to Purchase Credit (OPTrust 1017) before April 30th of the following year.
  • The buyback payment must be made by lump sum.

For all other LOAs, temporary part-time work arrangements and for prior non-contributory service where a PA is required, OPTrust will continue to send a request to the employer to amend the PA reported on the individual employee’s T4. 

6. Tax Reporting

OPTrust is responsible for providing the member with a T4A by mid-February for buyback payments made to the Plan in the previous year for following situations:

CORPAY employers:

  • OPTrust reports all payroll, monthly, quarterly and lump sum buyback payments.

Non-CORPAY employers:

  • OPTrust only reports monthly, quarterly and lump sum buyback payments (i.e. payments made directly to the OPTrust by the member). Any payroll deductions are to be reported by the employer on the employer’s T4.