Eligible period: scenario 3

A period of employment in the Ontario Public Service before 1992 during which you contributed to either the PSPP or OPSEU Pension Plan

Description

You may be eligible to buy pension credit for any period before 1992 that you worked for another Ontario Public Service (OPS) employer and contributed to either the PSPP or OPSEU Pension Plan, provided that when you left that employer you did one of the following:

  • Received a refund of your pension contributions with interest in cash
  • Transferred the cash value of your pension benefit to a locked-in retirement savings plan, such as a LIRA or another registered pension plan (RPP)
  • Chose to keep your pension benefits in the OPSEU Pension Plan

When to apply

We recommend you apply within 24 months of the date you joined the PSPP (or if you joined the PSPP because of a mandatory transfer from the OPSEU Pension Plan, within 24 months of the date you joined the OPSEU plan). If you don't, you'll still be able to buy credit for this period, but it will be priced differently and will likely cost you more.

How to apply

You must complete and submit an OPB1043 – Application to Purchase Pension Credit (PDF). Send your completed form to: Ontario Pension Board, 200 King St. West, Suite 2200, Toronto, ON, M5H 3X6. Once we receive and process your application, we will send you an Election to Purchase Credit form. This form outlines the cost of your purchase and your payment options.

What it will cost

Costing for all buyback types, except where you have a deferred pension in the OPSEU Pension Plan, is based on your annual salary at the time we receive your completed application and all required supporting documents (if any).

If you apply for your purchase within 24 months of the date you joined the PSPP (or OPSEU Pension Plan):

  • Your cost will be the greater of the:
    • Cost calculated using the contribution rate in effect during the eligible period you're buying back
    • Payments you received when you left your OPS employer, plus interest up to the date the cost of your purchase is calculated

If you apply for your purchase after 24 months of the date you joined the PSPP (or OPSEU Pension Plan):

  • Your cost will equal the actuarial value (this is the amount needed to fund the additional pension benefits you're entitled to as a result of buying back pension credit)

Payment options

Generally speaking, you cannot leave your pension credit in the pension plan of a former employer and purchase pension credit in the PSPP for the same period. Your payment options will depend on the type of termination benefit you received from a pension plan when you left your former OPS employer.

  • If you received a refund of your pension contributions with interest in cash, you can pay by:
    • Personal cheque
    • Direct transfer from an RRSP, LIRA or deferred profit sharing plan (DPSP)
    • Direct transfer from another registered pension plan (RPP)
    • Payroll deduction (this option is available only if the cost of your buyback is $500 or more; deductions can be made over a maximum of 10 years or up to your retirement date, whichever is earlier)
    • A combination of any of the above
       
  • If you transferred the cash value of your pension benefit to a locked-in retirement savings plan, you must pay by:
    • Direct transfer from an RRSP, LIRA or deferred profit sharing plan (DPSP)
    • Direct transfer from another registered pension plan (RPP)
    • A combination of any of the above
       
  • If you left your benefits in the OPSEU Pension Plan so that you can collect a deferred pension, you can transfer your credit into the PSPP. Simply complete an OPB1043 – Application to Purchase Pension Credit (PDF) and select option 5 under "Service Information." We will contact OPTrust to complete the transfer.

If you left your benefits in the PSPP so that you can collect a deferred pension, you do not need to buy back this service; your pension credit will be reinstated.

If you transfer money from an RRSP, LIRA, DPSP or RPP to pay for your pension credit, the transfer can be made tax-free – provided you use the appropriate direct transfer, which we will send to you.

Payment due date

The exact due date will be noted on the Election to Purchase Credit form we send you. However, payment or your decision to pay through payroll deductions is due 92 days from the date we mail your election form.