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Cost and payment options

For a full-time teacher with a salary of around $85,000, making up for a year’s gap in your pension typically costs about $10,000.

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You have choices

If you’re like many teachers, paying for that $10,000 leave could increase your pension by about $1,900 each year.

Most of our retired members collect a pension for about 30 years, so paying for that leave today could mean you’ll get as much as $57,000 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 pay for as little or as much of your leave 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 up to the date of your first pension payment (whichever comes first) to pay.
  • If you decide to pay for your leave, it’s best for you to tell us by April 30 of the calendar year following the year your leave ends. This’ll make your tax situation less complicated.
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The cost

Let’s say you took one year away from full-time work. Your salary, as reported by your employer, was around $85,000 before your leave. To get a rough idea of how much your leave would cost, multiply the salary you earned before your leave by the contribution rate(s) for the leave period you're paying for (2021's contribution rate is 12%): $85,000 × 12% = $10,200 plus interest.

Please enter a value between 40000 - 150000.

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 leave's 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 leave) 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 leave spans school years, we base your assigned salary (what you make contributions on) on the salary you earned before your leave. 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. 

When to pay

You have up to five years from the end of your leave to pay, or up to the date of your first pension payment (whichever comes first).

When you make a payment 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 2020 after being away for a year. Your tax deduction would only apply to four months of salary.

When your leave 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.

During your leave

  • Your leave doesn't incur interest.
  • You can start making payments as soon as we tell you the cost of your leave, but you may want to talk to a tax advisor first.

When your leave ends

  • Interest starts once your leave ends.
  • Our interest rates have recently hovered below 2%, but can change, and may increase, before you finish paying for your leave.

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 to let us know if you want to pay. So, if your leave ended in 2020, let us know if you’d like to pay by April 30, 2021.

Five years to pay

  • You have up to five years from the end of your leave to pay, or up to the date of your first pension payment (whichever comes first).
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How to pay

Pay for your leave with cash (online banking or cheque), RRSPs or a combination of both. You can’t pay with a credit card or through payroll deduction.

Getting started

Once you or your employer inform us of your leave, 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. We need to know by April 30  of the calendar year following the year your leave ends
  3. Start making payments
Contributions to another pension plan during your leave can have an impact on your taxes. Call us at 1-800-668-0105 if you worked, or are planning to work, during your leave.