When to pay
You have up to five years from the end of your leave or reduced workload to pay, or until your first pension payment—whichever comes first.
Getting started
Once your employer informs us of your leave, or you've applied and been approved for a reduced workload, we'll update your Buyback Centre. This may take some time—we update our data when the eligible leave or reduced workload is reported by your employer(s).
- Visit your Buyback Centre to determine eligibility. Eligibility depends on timing and other factors—some reduced workload scenarios may not qualify.
- Tell us if you plan to pay for your leave or reduced workload. Let us know by April 30 of the calendar year following the year your leave or reduced workload ends if you plan to buy back. If eligible to purchase service, you won’t lose the opportunity to buy back if you miss this date, but a different tax treatment may apply.
- Start making payments; unless you’re in a Past Service Pension Adjustment (PSPA) situation. If you’re in a PSPA situation, be sure sign in to your Buyback Centre to let us know how you plan on paying and to confirm your commitment.
Note: If you have multiple buyback opportunities, payments will be applied to the oldest first unless you tell us otherwise. You can choose which leave to purchase, but older ones may expire.
A few things to keep in mind:
- Your pension is about as close to a guaranteed investment as you can get. Monthly payments are based on a formula, not market performance.
- You can buy back as little or as much as you're eligible for. Service credit is proportional to the amount you pay.
- You have up to five years from the end of your leave or reduced workload to pay, or until your first pension payment— whichever comes first. Payments can be made as a lump sum or in instalments. If you're in a Past Service Pension Adjustment (PSPA) situation, your payment options may be limited.
- You can start paying as soon as we tell you the cost of your leave.
- Interest on your buyback cost starts when your leave ends.
When you pay in cash (online banking or cheque), you could be eligible for a tax deduction for the calendar year you make the contribution. The amount of the deduction will depend on how much taxable income you generated in the calendar year (we'll send you a tax receipt in February for any payments made in the previous year).
For example, let's say teaching is your only source of employment income, and you returned to work in September 2024 after being away for a year. Your tax deduction would only apply to four months of salary.
Your buyback timeline
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- The Buyback Centre in your online account will show you the maximum lump-sum you can pay in a calendar year.
- You can't prepay for the portion of a leave that extends into future calendar years.
- For reduced workloads, you must submit an application and wait to apply until the earlier of:
- the end of the school year in which a period of reduced workload occurs, or
- the end of a complete period of reduced workload.
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- Your leave or reduced workload doesn't incur interest.
- You can start paying as soon as we tell you the cost of your leave. For reduced workloads, we won't provide a cost until you've applied and we've approved your application. You may want to talk to a tax advisor first.
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- Interest starts once your leave or reduced workload ends.
- Our interest rates can change, and may increase, before you finish paying for your time off. You can see the current cost of your buyback (including interest) in your Buyback Centre at any time.
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- You have up to five years from the end of your leave or reduced workload to pay, or up to the date of your first pension payment (whichever comes first).
- We'll send you a tax receipt in February for any payments made with online banking or cheque in the previous calendar year.
- You can use that receipt to claim a deduction on your tax return.
- If you want to buy back service, let us know by April 30 of the year after your leave or reduced workload ends. For example, if your leave ended in 2024, you can let us know by April 30, 2025. You’re not required to notify us or make a purchase, but the tax treatment is different if you miss the April 30 deadline.
How to pay
You can pay with:
- Cash (online banking or cheque)
- RRSPs
- A combination of both
You can't pay by credit card or payroll deduction.
Paying in cash (online banking or cheque) may make you eligible for a tax break in the calendar year you contribute. The deduction depends on your taxable income that year. We’ll send you a tax receipt in February for payments made the previous year.
Implications of different tax situations
If you’ve told us by April 30 of the calendar year following the year your leave or reduced workload ends, you have flexibility to make payments in instalments or a lump sum and by whatever accepted payment method you choose for those payments. You can change your payment method at any time.
If it’s past April 30 of the year following your leave or reduced workload, you’ll need to login to your Buyback Centre to tell us how you plan to pay and to give your Past Service Pension Adjustment (PSPA) commitment. The payment type can impact the amount of PSPA, so we’ll need this information to certify the correct amount. The way you pay, in this instance, is fixed.
Learn more about the tax implications of buying back credit.
Online banking Online banking
- Use your personal or joint account
- Add “Ontario Teachers' Pension Plan” as a payee
- Enter your nine-digit account number
- We’ll send a tax receipt in February
RRSP RRSP
- Transfers can take up to six weeks
- You won’t get a tax deduction and won’t regain RRSP contribution room
- You may encounter administration fees
- You can transfer from a spousal RRSP if you're the annuitant. Your financial institution can tell you if you’re the annuitant.
- Complete the Direct Transfer from RRSP form and have your financial institution mail it with the funds
Cheque Cheque
- Make cheques payable to Ontario Teachers' Pension Plan
- Include your nine-digit Ontario Teachers' account number
- Mail to:
Ontario Teachers' Pension Plan
160 Front Street West, Suite 3200
Toronto, Ontario, M5J 0G4
The cost of your buyback
To estimate your cost, multiply your pre-leave salary by the contribution rate for the year(s) you were away.
For example: $87,500×12%=$10,500
Interest starts the month after your leave or reduced workload ends. Interest rates may change and may increase before you finish paying. Check your Buyback Centre.
How long will your leave be?
- 1 month
- 6 months
- 12 months
- 18 months
- 24 months
Your XXX month leave...
$5,100
$85/month over 5 years
DISCLAIMER
This calculator provides an estimated cost (excluding interest) of your employer-approved leave. This isn't your final cost. Your final cost factors in your total salary prior to going on leave, as determined under the terms of the plan. It also factors in the contribution rate(s) for the year(s) you were away from work, as well as your assigned salary, which is determined by the Ministry of Education.
This is just one example of a payment plan option. You can make a payment towards your leave any time before your leave's payment deadline.
Factors that affect your buyback cost
- Contributions
We multiply the salary associated with what you would've earned if you had worked (which is based on your salary before your time off) by the contribution rate(s) for the year(s) you've been away. The amount will be slightly more than what you would’ve contributed to the plan if you had continued to work. - Assigned salary
If your time off spans school years, we base your assigned salary (what you make contributions on) on the salary you earned before your time off. Each new school year, we apply increases that are determined by the Ministry of Education. - Interest
Interest will be applied to the cost of your buyback beginning the first of the month following the end of your leave or reduced workload. Interest rates are subject to change and may increase before you’re done paying for your leave.
Additional tools and information
Take me to my Buyback Centre
View your buybacks and payment history
Buyback FAQs
Get answers to your questions