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Pension credit buy back  


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Will I be able to buy back the pension credits I lose during a strike or lockout?

 
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Yes. The cost of purchasing pensionable service after the strike will depend on when a strike occurs and when the purchase is made:

Should a strike occur in 2017 the member pays two times contributions based on the salary at the start of the work stoppage, and the contribution rates in effect during the strike.

For Local 560 members who perform strike duty and are retiring within five years of the end of the strike, the local executive has voted to pay one half of this buy back contribution amount (what would have been the employer's contribution). 

It is important to note that should a strike occur after January 1, 2018, if a purchase is made within six months from the end of the strike, the member pays two times contributions based on the salary at the start of the work stoppage, and the contribution rates in effect during the strike.

If a purchase is made after 6 months the member pays the higher of two times the contributions, or the actuarial cost of the service being purchased.

Please contact the CAAT Pension Plan to request a costing at the conclusion of the strike or lockout.

It is important to note that the cost of a purchase is determined at the time that you make the purchase. Note that as a general rule, the cost of a leave gets more expensive the longer you wait to make the purchase.  However in the case of the 2017 strike, the cost of buying back the strike weeks will not increase and there will be no interest charged for the next 60 months, so the cost of buying back at retirement will be the same at any time during the 60 months following the strike.

Edited: 2 months  ago
 
  
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