Eligible period: scenario 1
A period of employment in the Ontario Public Service during which you did not contribute to either the PSPP or OPSEU Pension Plan
You may be eligible to buy pension credit for any period that you worked for an Ontario Public Service (OPS) employer, but did not contribute to the PSPP or OPSEU Pension Plan because membership was optional.
When to apply
We recommend you apply within 24 months of the date you joined the PSPP. 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 submit the OPB1043 – Application to Purchase Pension Credit (PDF) to your employer who will then submit it to OPB along with other required information. For all other buybacks, submit the application directly to OPB.
Once we’ve received and then reviewed the buyback application and supporting information, 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 is based on your annual salary at the time we receive your completed application and all required supporting documents.
If you apply for your purchase within 24 months of the date you joined the PSPP:
- Your cost will be calculated using the contribution rate formula in effect during the eligible period you're buying back
If you apply for your purchase after 24 months of the date you joined the PSPP:
- 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 include:
- 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 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 form, 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.