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 immediately prior to your absence (as reported by your employer) by the following contribution rate(s) for the year(s) you are buying back:
|Year of Absence||Contribution Rate|
*As a percentage of your base salary
In 2015, Nicole takes a leave of absence from her full-time teaching job to travel around the world. Her annual rate of pay immediately prior to her absence is $60,000. Here's what it will cost Nicole to buy back her leave:
$60,000 x 13.1% (contribution rate for 2016) = $7,860 + interest
We use the standard interest rates in effect from the end of your leave until your buyback is completed. For example, interest rates were 1.29% in 2016, 1.18% in 2017 and 1.03% in 2018.
If your leave spans more than one school year, we'll apply an escalation factor to your salary to account for year-over-year changes in employment information. This is prescribed by the Ministry of Education.