Buyback Proposal Information for Members
Who would receive a Buyback Proposal: all active members at 2022 year-end whose employer reported non-contributory Leave Without Salary (LWOS) and non-contributory Parental LWOS details for 2022.
When: Buyback campaigns are run annually from February to August dependent on when employers have submitted their member LWOS details. Members will have 90 days from the date of the proposal to make their election to acquire the leave.
Deadlines: If member would like to purchase, member must submit election and payment within 90 days from the date the Buyback Proposal was produced; the due date is noted on page 1 of Buyback Proposal.
Payment options:
- Member can send payment directly to the Plan (in the form of personal cheque or bank draft) as a lump sum or as a first installment (where member balance is over $500) for the purpose of keeping buyback contract open.
- Member may pay for their buyback with RRSP and LIRA transfer payment(s) from their financial institution; since these take more time, member should complete the T2033 with their financial institution as soon as possible once they receive their Buyback Proposal.
- Member can pay by installments selected in their buyback election (where member balance is over $500), via payroll deduction. Their employer may need up to eight weeks processing time, so member needs to set up payroll deduction at least eight weeks before the first payment due date.
Other important info:
- Member balance(s) remaining after an initial lump sum or installment payment (if applicable) will start accruing daily interest after the first payment due date at the interest rate specified on the Buyback Proposal.
- If member submits election to purchase before May 1, 2023, their employer will adjust the Pension Adjustment value on their 2022 T4.
- If member submits election to purchase on or after May 1, 2023, APS will submit a Past Service Pension Adjustment directly to CRA.