What you need to know
Taking a leave of absence (LOA) where contributions are not made can affect your pension. That’s why the OPSEU Pension Plan gives you two options to help you maximize your pension:
Option 1: Contributing to the Plan during your leave
Option 2: Buying back pension service once you return to work
Looking at unpaid leaves of less than one month:
For unpaid leaves of one month or less, contributions are mandatory and are deducted from your pay when you return to work. As a result, these leaves do not affect your pension.
Looking at unpaid leaves of longer than one month:
Taking an unpaid leave that lasts longer than one month can affect how much pension service you have. This happens because your regular pension contributions usually stop during an unpaid LOA. This applies to the following kinds of unpaid LOAs:
Pregnancy, parental and adoption leaves
Family medical leaves
Leaves due to illness, or when you are receiving benefits from WSIB
Special and educational leaves
Other leaves that qualify under the Employment Standards Act
Note: If you need to take a LOA and go on Long-Term Income Protection (LTIP), your employer is responsible for paying your share of pension contributions, as well as theirs. As result, periods when you receive LTIP benefits do not affect your pension service.
Leaves of Absence and Your Pension
Taking an unpaid leave of absence (LOA) can affect your pension. That’s why the OPSEU Pension Plan gives you two options to help you maximize your OPTrust pension: contributing to the Plan during your leave, or buying pension service once you return to work.
Buying Back Pension Service
Are you a new OPTrust member? Have you taken an unpaid leave of absence recently? If so, applying to buy back pension service in the Plan could be one of the best financial decisions you can make.
How to apply
If you decide to contribute during your unpaid leave, follow these simple steps.
If you decide not to contribute during your unpaid leave, please complete the Application to Contribute During an Unpaid Leave of Absence (OPTrust 1025) form and check the box indicating that you opt not to contribute and provide a copy to your employer before you start your leave. You will still have the option of buying back service for your leave after you return to work.
Open Option Buyback
How does an open option buyback work? An open option buyback gives members who did not apply within the normal 24-month window the flexibility to complete a buyback.
Contributing to Your Pension While on a WSIB Leave
OPTrust members who are off work due to a workplace injury or illness, and receive benefits from the Workplace Safety and Insurance Board (WSIB) are eligible to continue contributing to the OPSEU Pension Plan, and also receive pension credit for the period of their leave.