Buybacks and transfers

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    In this section

    This section describes how members may purchase additional pension credit in the PSPP through buybacks and transfers. It includes these topics

    On this page

    This page provides an introductory overview to buybacks and transfers and includes the following topics:

    What are buybacks and transfers?

    A member may purchase additional pension credit in the PSPP by "buying back" or "transferring" past service eligible for PSPP membership. These must occur within a 24-month window.

    What is a buyback?

    A buyback is a purchase or "buy back" of pension credit for the following:

    • Prior contributory Ontario Public Service (OPS) service (Reinstatement buyback)
    • Prior non-contributory OPS service
    • Leave of Absence for more than one month
    • Contract OPS employment
    • Non-OPS service; i.e., with another registered pension plan
    • Temporary part-time work arrangements

    What is a transfer?

    A transfer is a movement of pension credit and funds from another plan into the PSPP under the following conditions:

    • There is a reciprocal transfer agreement between the PSPP and the former plan.
    • The member qualifies and applies for the transfer within the time limits specified by the transfer agreement.
    • The member has pension credit in the former plan.

    Important: When in doubt, please contact OPB or advise the member to contact OPB directly for clarification.

    Advantages of more pension credit

    More pension credit in the PSPP acquired under these provisions offers members the following advantages.

    • more pension credit translates into greater pension benefit for the member at termination or retirement, and
    • more pension credit may help the member meet an early retirement option sooner, and
    • more pension credit may qualify the member for insured benefits at retirement.

    Example: Pension credit gained through buyback or transfer may allow a member to acquire the unreduced early retirement 60/20 provision.

    Types of buybacks and transfers

    This table summarizes the various types of buybacks and transfers available to members.

    Type Description
    Buybacks
    Buyback of Pension Credit Buyback or purchase for
    • Buyback of OPSEU Service (where there is a break in service/employment)
    • non-contributory employment with an Ontario Public Service (OPS) employer
    • contributory employment with an OPS employer (Reinstatement buyback)
    • unpaid leave of absence while working for an OPS employer for
      • pregnancy, parental or adoption leave
      • family medical leave
      • illness
      • special or educational leave
    • membership in another pension plan registered in Canada (Non-OPS Buyback)
    • Temporary part-time work arrangements
    Transfers
    Transfers from OPSEU Mandatory transfer of credit in the OPSEU pension plan to the PSPP when there is
    • a promotion or change in position and
    • with no break in employment.
    Voluntary transfer of OPSEU service into the PSPP following a break in service when the member has a deferred pension entitlement in the OPSEU Pension Plan.
    Transfers from other plans Transfer of pension credit into the PSPP via transfer agreement between the PSPP and a
    • Major Ontario Public Sector Plan under the multilateral agreement (MOPPS), or
    • Another Pension Plan under a Reciprocal Transfer Agreement (RTA).

    Importance of time

    Buybacks and transfers are time-bound processes. Time may influence the buyback or transfer in the following ways:

    • eligibility to buyback or transfer, and/or
    • costs associated with a buyback or transfer.

    Important: When members knowingly or unknowingly miss the deadline for a buyback or transfer, they may lose the opportunity to

    • increase their pension credit, and
    • qualify for an earlier unreduced retirement option.

    For further information

    For more information, please see:

    Buybacks and Transfers Forms