Cost and payment options

You have choices

If you’re like many teachers, paying for that $10,000 leave could increase your pension by about $2,000 each year.

Most of our retired members collect a pension for about 30 years, so paying for that time off today could mean you’ll get as much as $60,000 more throughout your retirement.

A few things to keep in mind:

• Your pension is about as close to a guaranteed investment as you can get. When you retire, your monthly payments will be determined by a formula, not the ups and downs of the market.
• You can buy back as little or as much as you want. You’ll receive service credit that's proportional to the amount you’ve paid.
• 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).
• If you decide to buy back, it’s best for you to tell us by April 30 of the calendar year following the year your leave or reduced workload ends. This’ll make your tax situation less complicated.

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. 

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 2023 after being away for a year. Your tax deduction would only apply to four months of salary.

When your time off starts

• 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.

During your time off

• 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.

When your time off ends

• 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.

When you return to work

• 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.
• You have until April 30 of the year following the end of your leave or reduced workload to let us know if you want to buy back. So, if your leave ended in 2023, let us know if you’d like to buy back by April 30, 2024.

Five years to pay

• 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).

Getting started

Once you or your employer inform us of your leave, or you've applied and been approved for your reduced workload, we'll update your Buyback Centre. Once we have it on record, paying for it is simple:

1. Visit your  Buyback Centre
2. Tell us if you plan to pay for your leave or reduced workload. We need to know by April 30 of the calendar year following the year it ends
3. Start making payments

Contributions to another pension plan during your leave or reduced workload can have an impact on your taxes. Call us at 1-800-668-0105  if you worked, or are planning to work, during your time off.