The OPSEU Pension Trust is allowing its plan members to earn full pension service if they temporarily reduce their working hours.
The changes were made to support members who participate in flexible working arrangements so they can maximize their pension.
Members who enter into a temporary part-time work arrangement on or after Feb. 1, 2022 can continue making pension contributions based on their regular work hours — and receive matching employer contributions — so they earn full pension service. Members can also choose to make pension contributions for only the reduced hours they work and apply to buy back the pension service for the hours they didn’t work after the arrangement ends.
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A special 24-month buyback window is available for members who were on a temporary part-time work arrangement before Feb. 1, 2022. If members apply to buy back pension service for a past arrangement before the 24-month buyback window closes on Jan. 31, 2024, their employer will match their contributions.
Payment options for the buyback include payroll deductions through the plan members’ employer, online banking payments, a lump-sum transfer from a locked-in retirement account or a registered retirement savings plan or any combination of these. If the cost is greater than $500, members can arrange to finance their buyback with the OPTrust for a period of up to 10 years with interest charges applying.
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