Cost and Payment Options
	Getting an estimate I Cost I Payment
	How do I get an estimate? You can get an estimate any time on iAccess Web, the secure members-only section of our website. You can even arrange to pay for your buyback electronically. If you aren’t yet registered for iAccess Web, consider signing up. To get an estimate, you need to know the start and end dates of your leave, as well as the salary and contract percentage that would have applied during your absence. (Contact the employer that approved your leave if you don’t have this information.) Keep in mind that buying credit for an absence means you accumulate more credit. More credit, and not what you pay for the buyback, entitles you to a larger pension. TOP What does it cost? There are two ways we determine the cost of buying back credit: 1. Contributions plus interest This is roughly the amount you would have contributed to the plan if you had continued to work, plus applicable interest. Contributions are calculated by multiplying your salary by the following contribution rate(s) for the year(s) you are buying back:

	Year of Absence				Contribution Rate*
	Before 2007				8.9%
	2007				10.9%
	2008				11.2%
	2009				12.0%
	*As a percentage of your base salary

For example, in 2007, Nicole is taking a leave of absence from her full-time teaching job to travel around the world. She would have earned $50,000 during the absence. Here’s what it will cost Nicole to buy back the leave after she returns to work: $50,000 x 10.9% (contribution rate for 2007) = $5,450 + interest charges We use standard interest rates in effect from the beginning of your absence until your buyback is completed. For example, interest rates were 2.48% in 2006 and 2.75% in 2005. 2. Actuarial cost Actuarial cost is the present value of the expected improvement in your pension resulting from the buyback of credit. It is based on assumptions about interest rates, inflation rates, mortality rates, salary increases, and other factors. It also takes into account your age, pension credit and salary. Generally, the closer you are to retirement, the greater the actuarial cost to buy back credit. TOP How can I pay for a buyback? There are two ways you can pay for an absence: 1. Pay during your absence You can continue to contribute during your absence by providing us with postdated cheques or by setting up automatic bank withdrawals. Contact us about two months before your absence to determine your monthly payments. By continuing to contribute, you’ll avoid interest charges and there’s no risk of missing the payment deadline. If you will be taking a pregnancy or parental leave, you will continue to contribute through your employer, unless you make other arrangements. Contact your employer at least two weeks before your leave to firm up details. 2. Pay when you return to work You have up to five years from the end of your eligible leave of absence or break in service to pay for all or part of the credit. If you miss the deadline, you forfeit the opportunity to buy back credit. If you buy back only part of your absence, you will receive a corresponding amount of credit. The payment must be made in a lump sum by one or a combination of: • a personal cheque or electronic transfer of funds; or • a transfer of funds from your RRSP. If you pay after April 30 of the calendar year following the year your absence ended, the buyback will be subject to approval from the Canada Revenue Agency, based on your RRSP room.

	Posted August 2006	TOP