Not Sure Whether to Buy Back?

If you're on the fence about buying back your leave, here are six things to keep in mind:

  1. When you buy back you bring yourself closer to collecting an unreduced pension, and you collect that pension for longer (instead of working and paying contributions for an extra year).
  2. You have five years from the time your leave ends to pay for your buyback.
  3. You can transfer your RRSPs to pay for all or a portion of your buyback.
  4. Cash payments can provide a tax deduction, saving you money at tax time.
  5. Contributions to your pension plan, including buybacks, are matched by your employer.
    Essentially, this means you are paying for 50% of your retirement.
  6. Investing your funds in your pension is a good idea.
    The security of a defined benefit pension plan is hard to beat.