Eligible period: scenario 7
A shortfall (top up) not previously purchased within original timelines when you transferred pension credit into the PSPP from another registered pension plan through a transfer agreement
You can buy pension credit for any shortfall you did not previously pay for within original timelines when you transferred pension credit into the PSPP from another registered pension plan through a transfer agreement.
When to apply
We recommend you apply within 24 months of the date you were initially notified of your shortfall at the time of your transfer. If you don't, you'll still be able to buy pension credit for the shortfall, but it will be priced differently and will likely cost you more.
How to apply
You must complete and submit an OPB1043 – Application to Purchase Pension Credit (PDF). Send your completed form to: Ontario Pension Board, 200 King St. West, Suite 2200, Toronto, ON, M5H 3X6. Once we receive 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).
If you apply for your purchase within 24 months of the date you received initial notification of your shortfall:
- Your cost will be calculated based on the assumptions of the transfer agreement, plus interest
If you apply for your purchase after 24 months of the date you received initial notification of your shortfall:
- 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.