Taking a leave of absence from work

If your unpaid leave is one month or less (i.e. less than 31 days), you and your employer will continue contributing to the Plan. You will continue to earn pension credit in the PSPP as usual, just as if you had stayed at work.

However, if the leave is unpaid and for more than one month (i.e., 31 days or more), you have three options: pay now (contribute during the leave), pay later (purchase the pension credit at a later date) or pay nothing (do not contribute to the Plan).

Below are some examples of leaves without pay:

• Pregnancy/parental leave
• Special or educational leave
• Family medical leave
• Illness leave (including while receiving WSIB benefits)
• Strike or lock-out (if you are a unionized employee)

If you are taking a pregnancy or parental leave, you have the option of continuing your contributions to the Plan. If you continue contributions, your employer is required to match the contributions you make.

If your employer provides a supplementary unemployment benefits (SUB) allowance, contributions will continue if you’ve decided to contribute while on leave.

If you extend your pregnancy and parental leave beyond 18 months, your leave will be reclassified as an unpaid special leave after the 18-month period ends and you’ll be responsible for paying the member and employer contributions.

Yes. If your employer approves an unpaid leave of 31 days or more, they will need to report it to us through OPB's Employer Portal. Once received, we'll send you a quote for the cost of contributing during the leave. You’ll then need to determine whether you want to contribute or not.

Once your employer notifies us through OPB's Employer Portal that you have been approved for leave, we will send you an information package letting you know what it will cost you to contribute during the leave, as well as how contributing or not will impact your pension. Once we receive your election, we'll send you a payment schedule. You can then confirm whether this is the right option for you.

If you don't contribute while you're on leave, you can still apply to purchase pension credit at a later point during your leave or when you return to work. You’ll need to complete the OPB 1043 – Application to Purchase Pension Credit (PDF) form and we’ll send you a cost quote. If your leave crosses a calendar year, we’ll send you a revised cost in January.

Most leaves are matched by your employer, which means it costs you the same amount to contribute during the leave as it would if you were at work.

For example, taking an employer-matched leave in 2024 would cost:

7.4% of salary to the YMPE (year's maximum pensionable earnings) + 10.5% of salary above the YMPE = contributions

The YMPE is a limit set each year by the federal government to determine CPP contributions. If your salary increases after the leave, it will cost more to purchase the credit at that time, so consider contributing during your leave as it will be more advantageous to you.

However, for some leaves, like special or educational leaves, you are responsible for paying both the member and employer contributions. The exact cost will also depend on how long you’re on leave, your salary when you start the leave and the contribution rates in effect at the time.

Yes. The federal ITA limits how much credit you can earn when you’re on a leave of absence. You can contribute to the Plan for up to five years of leaves taken after 1990. You can take up to three more years of pregnancy and parental leaves (maximum of 12 months for each pregnancy or child).

If you make contributions while on an approved leave, the contributions you make are tax deductible up to the federal ITA maximum. We will send you a tax receipt for any contributions you make directly to OPB. For more information, you can either contact us or refer to the Canada Revenue Agency.

While there is no time limit to purchase a leave of absence, it is typically much less expensive to contribute during the leave or buy it back within 24 months of the end of your leave. That’s because after 24 months, we calculate your cost on an actuarial basis, which means we determine how much it will cost us to fund the additional pension you’re buying. Buying back pension credit based an actuarial cost will likely be more expensive.