There are many ways for members to pay for leave of absence or prior service. The Buyback Proposal will list all the options available, which may include:
- pre-authorized debit. Members have an option to make a lump sum payment or their first installment payment through the Buyback Purchase Tool in Your Pension Profile by completing a pre-authorized debit form;
- regular payroll-deductions arranged with a member’s employer (according to the number of installments the member chooses on their Buyback Election);
- payment via cheque to a member’s employer for a lump-sum payment of either the total buyback amount or a portion of it; or
- transfer of funds from a registered retirement savings vehicle, such as a Registered Retirement Savings Plan (RRSP) or a Locked-In Retirement Account (LIRA).
Active buyback proposals that are available for purchase can be viewed by logging in to Your Pension Profile at the top right corner of the website and selecting Buyback Purchase from the drop-down menu.
Payments must be made according to the schedule on the Buyback Proposal .
If a member has already begun making payments but no longer wishes to pay for the full amount, they can prorate their service and purchase only a portion instead of the full amount.
For example, if the cost of buying one year of service was $10,000 and a member decided to stop making payments after paying $5,000, the member would receive credit for half a year's service (before any interest charges get factored in).
What If a Member Leaves MEPP Before They Complete Paying for Their Buyback?
If a member intends to buy prior service, they must submit their application before they leave the Plan.
If a member wants to purchase a leave of absence, they need to apply within 30 days of the date they leave the Plan.
If a member is already paying for a leave or making prior service payments, they will have 90 days from the date they leave the Plan to complete their purchase.