Don't skip a beat
August 04, 2015
When you're still searching for a full-time, permanent position starting a family can seem like a gamble. By buying back your maternity leave, your pension doesn't need to skip a beat.
Let's crunch the numbers:
About 1,200 occasional teachers have collectively taken 1,400 maternity leaves since 2010.
Just before their leave started, these members had, on average, been working for 2.5 years, with a salary of $47,500.
Roughly 9% have fully paid for a buyback, adding an average of 115 days of credit to their respective service records.
The mean principal cost of a buyback was just under $3,500.
If you were to take that $3,500 and keep it in a savings account with a 2% interest rate per year, after 55 years it will have grown to $10,400.
On the other hand, if you put that $3,500 towards your buyback, assuming you work for another 25 years with a 1% annual salary increase, and then collect a pension for 30 years with a 0.5% adjustment for inflation each year, your buyback payment would be worth $21,000.
Still not sure? Sign in to your secure Teachers' account and visit the Buyback Centre to explore your options. Remember, you have five years from the time your leave ends and there is no pressure to buy back your entire leave.
Download BabySteps, our secure app, to learn more about buybacks and to track your mat leave buyback.