Impact to your pension
Does paying for a leave make a difference?
If you’re like a typical teacher, making up for a year's gap in your pension typically costs around $10,000. Paying for that leave now could increase your pension by about $1,880 each year.
Most of our retired members collect a pension for around 30 years, so paying for that leave today could mean you’ll get as much as $56,000 more throughout your retirement.
Only have 5 minutes?
Get a rundown of how paying for a leave can affect your wallet, taxes and pension by visiting What’s the Scoop on your leave?
Why not just work an extra year to make up for your leave? Let’s face it, the closer you get to your 85 factor, the more valuable retirement will likely be.
A few things to keep in mind:
- Paying for your leave will increase your service credit. The more service credit you have, the bigger your pension.
- To maintain your retirement goal, consider paying for your entire leave.
- You can pay for a leave up to five years from when your leave ended, but no later than the month before your pension starts. If retirement is around the corner for you, it’s a good idea to begin paying early to avoid delays in processing your pension application.
Did you know that participating in another pension plan during a leave could affect your taxes? Call us 1 (800)-668-0105.
Don’t worry, contributing to the Canada Pension Plan or an RRSP doesn’t count.