August 01, 2014

There has been a slight change in the way we contribute to the Ontario Teachers’ Pension Plan. A plan change will soon eliminate the need to buy back some of your time away from work.

Beginning September 1, 2014, you will automatically maintain service credit for employer-approved absences that span five or fewer consecutive school days. Referred to as “short absences”, these paid and unpaid days off may be for things like personal days, religious holidays or if you run out of sick days and need more time off.

This plan simplification was approved in late July by the Ontario Teachers’ Federation and Ontario government, which jointly sponsor the pension plan.

What does this mean?

If your employer approves time off for one day or up to five consecutive school days, you won’t have to buy back service for these short absences. Your employer will report credit, deduct and remit contributions from your salary as they normally would if you were working.

If you take an employer-approved leave of absence that lasts more than five consecutive school days, you will still have the option to buy back credit for all or a portion of the leave.

No need to contact us

If you plan to take off a day here and there, or up to five days, you don’t have to do anything when it comes to your pension. You will automatically maintain service credit in the plan.

http://www.otpp.com/members/pension-news-online/articles/article/-/article/718989#.VBsOanGz-hE.email