Eligible period: scenario 2
An unpaid leave of absence for more than 30 days where you did not contribute while on leave
You can buy pension credit for eligible unpaid leaves. Eligible unpaid leaves include:
- Pregnancy, or parental
- Family medical leave
- Leave for illness or work-related injury
- Special or educational leaves
When to apply
We recommend you apply within 24 months of the date your leave ends. If you don't, you'll still be able to buy back pension credit for an eligible leave period but it will be priced differently and will likely cost you more.
How to apply
You must complete and submit the following:
- OPB1043 – Application to Purchase Pension Credit (PDF)
- OPB1025 – Leaves of Absence Without Pay (PDF) – we will check our records to see if your employer previously sent us this form. If not, we will ask you to have your employer complete one for the period you wish to purchase
Send your completed forms to: Ontario Pension Board, 200 King St. West, Suite 2200, Toronto, ON, M5H 3X6. Once we receive and process your forms, 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 any).
If you apply for your purchase within 24 months of the date your leave ends
- For a pregnancy or parental leave, a family medical leave or a leave due to illness or work-related injury, or certain other leaves under the Employment Standards Act (2000) – your cost will be calculated using the contribution rate in effect during the eligible period you're buying back.
- For a special or educational leave - Your cost will be calculated using two times the contribution rate in effect during the eligible period you're buying back (the cost is two times the contribution rate because your employer is not required to match contributions for these types of leaves)
If you apply for your purchase after 24 months of the date your leave ends:
- 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, 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.