Under the current plan terms, as a member of the OPSEU Pension Plan you may purchase, or buy back, pension service in the Plan subject to certain eligibility criteria. Pension service is purchasable under the Plan.
Past Ontario Public Service
Any employer contributing to the OPSEU Pension Plan, the Public Service Pension Plan or its predecessor plan.
This service includes periods of employment during which no contributions were made to the Plan (typically contract employment) and periods of employment for which contributions were previously refunded or for which you transferred your pension entitlement out of the Plan.
Past service with another Canadian registered pension plan
Service with an employer who did not contribute to the Plan, but who offered employees a registered pension plan in Canada.
The plan must be a registered defined benefit or defined contribution plan. Group registered retirement saving plans (RRSPs) or deferred profit-sharing plans (DPSPs) are not purchasable. During the period of employment, you must have been a member of that prior employer’s pension plan. For periods before 1992, you must still have pension service in your prior plan for the service you are purchasing, and you must transfer the funds directly to the OPSEU Pension Plan.
Leave of absence during which contributions were not made for more than one month for illness, including WSIB-compensated injuries, pregnancy, parental, adoption, special or educational purposes, or other leaves that qualify under the Employment Standards Act. You may accrue pension service for these periods by making contributions to the Plan during the leave, or you may apply to buy back these leave periods when you return to work.
Temporary part-time work arrangements
An employer who participates in the OPSEU Pension Plan (or the PSPP). You may accrue pension service for the hours you did not work by continuing to make contributions based on your regular hours during the arrangement. Alternatively, you can choose to make contributions on your reduced hours only and apply to buy back pension service for the hours you did not work when the arrangement ends. See Participating in a Temporary Part-Time Work Arrangement for more information.
Costs of buying back pension service
The cost of buying back is based on the type of pension service you are purchasing and when you apply. See the following chart:
| Type of Purchase | Cost Basis if Application Made Within 24 Months |
Cost Basis if Application Made After 24 Months |
|
|---|---|---|---|
| Prior Service | OPS Service Non-contributory |
• Member pays member contributions at member contribution rate and salary at application date
• Employer pays matching contributions at employer contribution rate
|
• Actuarial
|
| OPS Service Contributory (Reinstatements) |
• Actuarial
|
||
| Non-OPS Service | |||
| Leaves of Absence Without Pay |
Illness Leaves while in receipt of Workplace Safety and Insurance Board benefits |
• Member pays member contributions at member contribution rate and salary at application date
• Employer pays matching contributions at employer contribution rate
|
• Actuarial
|
|
Pregnancy Parental Adoption Other leaves which qualify under the Employment Standards Act |
|||
|
Special Educational |
• Member pays twice member contributions at member contribution rate and salary at application date
|
||
| Temporary Part-Time Work Arrangements |
• Member pays member contributions at member contribution rate and salary at application date*
• Employer pays matching contributions at employer contribution rate
*For arrangements that occurred before February 1, 2022, members must apply for a buyback before February 1, 2024, otherwise the cost will be actuarial.
|
• Actuarial
|
|
Important notes
Even when a buyback is based on an actuarial value, there may be advantages to applying to buy back within the 24-month window. See Buying Back Pension Service for more information.
The cost can also differ depending on your individual circumstances. Some members may be subject to old rules. If this applies to you, OPTrust will inform you.
Payment options for your buyback include payments by:
online banking or cheque for either lump sum or installment payments
financing payments (where the cost is over $500) through payroll deductions for a period of up to 10 years or until termination of employment or membership, whichever occurs first
transferring funds from your RRSP or Locked-in Retirement Account (LIRA), or
any combination of these options.
Contributions made by cheque, online banking or payroll deduction are tax deductible. For all purchases of pension service, you must have, or make available, sufficient RRSP room. Some purchases of pension service may require Canada Revenue Agency approval and may reduce your RRSP contribution room.
Note: To buy back prior service, the 24-month application window starts on the date of your enrolment in the Plan. For buying back leaves of absence periods or temporary part-time work arrangements, the 24-month application window starts on the day the leave or arrangement ends. The cost can differ depending on whether you apply within or outside the 24-month window. Refer to Buying Back Pension Service for information on deadlines and costs.
