Eligible period: scenario 6
A period of employment with a non-Ontario Public Service employer since 1992 during which you belonged to another registered pension plan in Canada
You may be able to buy pension credit for any period since January 1, 1992, during which you worked for a non-Ontario Public Service employer and belonged to another registered pension plan in Canada, provided you:
- Left your pension benefits in that plan
- Transferred the cash value of your pension benefits to a locked-in retirement savings plan, such as a LIRA
- Received a refund of your pension contributions with interest in cash
When to apply
We recommend you apply quickly, because the cost to buy back this type of employment may increase significantly over time.
How to apply
You must complete and submit an OPB1043 – Application to Purchase Pension Credit (PDF). Send your completed application to: Ontario Pension Board, 200 King St. West, Suite 2200, Toronto, ON, M5H 3X6.
We also need a letter from your former employer, or the administrator of your previous registered pension plan, that includes:
- The name and address of your former employer
- The name and registration number of the other plan
- The date of your plan membership and termination in the other plan
- Your total credited employment (years, months, and days) broken down for the following periods:
- Up to December 31, 1986
- From January 1, 1987, to December 31, 1991
- Since January 1, 1992
- Dates of any employment when you were not working full time
- Pensionable earnings for all service for each calendar year since 1990
- Pension adjustments for each calendar year since 1990
- Confirmation of the amount, if any, of post-1989 contributions or benefits transferred to an RRSP
- Confirmation that locked-in amounts are subject to Ontario's locking-in rules
Once we receive the letter 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 is based on your annual salary at the time we receive your completed application and all required supporting documents (if any).
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. This may be more or less than the termination benefit you received from the pension plan of your former employer.
Any funds left in your former pension plan must be transferred to the PSPP. 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. If there are no funds left in your former pension plan or they don't cover the entire cost of your buyback, you can pay the difference 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 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.