Did you know – during your career, if you take a leave of absence, it creates a gap in your pensionable service years? It is because during these times, you are not contributing to your Teachers’ Pension Plan. However, many types of leave may be eligible to be bought back anytime during your teaching career.
This purchase of service would give you more pensionable service, a higher pension and in some circumstances, help you reach retirement eligibility sooner. Taking this step could not only get you closer to retirement, but also to having a higher pension when you do retire.
Types of Leave That May be Eligible
• Maternity Leave
• Parental/Adoption Leave
• Authorized Leave without Pay
• Unpaid Education Leave
• Unpaid Sick Leave
Payment Methods Available
• Single payment by personal cheque or transfer from your RRSP
• Payroll deductions, if applicable, over a time frame equal to the length of the service purchased
Important Points to Note
• The best time to buy back service is within 180 days of your return to work from that leave.
• Your employer will match contributions if the purchase contract is signed within 180 days.
• After 180 days, you will pay the full actuarial amount.
• There may be income tax implications. Check with the CRA for more details regarding this.
Reaching retirement could be sooner than you think!
To discuss your options about purchasing unpaid leave, contact us at 709-793-8772 or email us at email@example.com .
Call or email us today!