What is the Buy-Back Cost Estimator tool?
The Buy-Back Cost Estimator Tool allows you to quickly and easily obtain the approximate cost of the buy-backs you are considering.
It also indicates the approximate service that could be credited to your pension plan for the period or periods bought back.
Who can use the Buy-Back Cost Estimator tool?
The tool is intended for people who are members of the RREGOP or the PPMP and are thinking of applying for one of the types of buy-backs listed below.
The tool is also used by employers and employee or executive associations from the public and para-public sectors.
Which types of buy-backs can be estimated using the Buy-Back Cost Estimator tool?
The tool provides an estimate of the cost of the most frequently purchased buy-backs by RREGOP and PPMP members, that is:
- absence without pay
- parental leave that started after 1 January 1991
- compassionate care leaves that began after 1 January 2012
- service as a casual employee.
What information must I have on hand when I use the Buy-Back Cost Estimator tool?
If you complete the Absences by year section:
- your current annual pensionable salary
- the type of absence (absences without pay, parental leaves or compassionate care leaves)
- the year the absence occurred
- the annual pensionable salary for each year concerned by the period of absence, as of 2008
- the number of days of absence.
Note: Your Statement of Participation may show the number of days of absence by year.
If you complete the Absences by period section:
- your current annual pensionable salary
- the type of absence (absences without pay, parental leaves or compassionate care leaves)
- the period of absence (starting date and end date)
- the annual pensionable salary of each year concerned by the period of absence (when the tool detects a situation for which it is mandatory)
- the percentage of the absence or number of days of absence (each day of the week is equal to 20%).
Note: Your Statement of Participation may show the number of days of absence by period.
For a period of service as a casual employee:
- your current annual pensionable salary
- the years of service to buy-back
- the number of work days to buy back per calendar year.
Is the data checked by Retraite Québec?
No, the data you enter are not checked by Retraite Québec. However, the tool performs some validations to ensure that the data provided are coherent (for example, an error message will appear if you indicate that a period of absence ended before having started).
Can the actual cost and recognized service of the buy-back differ from the estimate?
Yes. If you officially apply for a buy-back, it is possible that the actual cost and recognized service of your buy-back will differ from the approximate cost and service indicated in the estimate.
This gap is, for the most part, due to the fact that the actual cost and service of the buy-back established following the study of your file will be based on data confirmed by the employers.
The detailed analysis of your buy-back application will take into account the characteristics of your specific situation. For example, if in the form Application for Buy-Back you requested that the "90-day bank" be taken into account for the buy-back of your period of absence, or if you have been contributing to your pension plan for many years and are close to or have reached the maximum service, these elements, unknown at the time of the estimate, could influence the service to buy-back. Furthermore, other specific situations could apply to you.
In addition, special rules apply in the case of a buy-back of absence. Indeed, the cost of the buy-back of a period of absence under the RREGOP and the PPMP is calculated on different bases depending on whether Retraite Québec receives the buy-back application within 6 months following the end of the period of absence or more than 6 months after the end of the period.
It is important to note that if the approximate cost of the buy-back is calculated by the tool based on the rate expected for applications received within 6 months following the end of the period of absence and that you present your buy-back application to Retraite Québec more than 6 months after the end of that period, the actual cost of the buy-back could differ from the approximate cost estimated by the calculation tool.
Will the results provided by the tool guarantee rights to the person who completes the estimate?
No. The results obtained only indicate that the tool estimated the approximate cost of a buy-back you are considering based on the data entered, as of the date indicated.
The estimate does not guarantee you the right to buy-back the period or periods you indicated.
The detailed analysis of your buy-back application will confirm whether or not you meet the specific terms to be eligible to a buy-back.
Is the protection of personal information guaranteed?
The Buy-Back Cost Estimator Tool is not connected to any database from Retraite Québec. Consequently, you will not be asked to provide any nominal information (name, social insurance number, etc.) to use the tool. The tool is in fact a calculator programmed to provide a result based on certain types of data, based on Retraite Québec's instructions. Therefore, you can use it in all confidence.
Where can I find more information on the buy-backs of service?
You can obtain details on the buy-backs of service in the following section: Frequently asked questions - Details regarding the Buy-Backs of Service
Whom should I contact if I have questions about my specific situation?
If you have questions about your specific situation, we invite you to contact:
- the human resources representative for your employer;
- your union or your executive's association;
- Retraite Québec's client services.
"Help" section for step 1 of the Buy-Back Cost Estimator Tool
Why do I have to enter the name of the pension plan in which I am currently participating, my date of birth and my annual pensionable salary in the estimation tool?
The calculation of the cost of a buy-back varies depending on the plan you are participating in on the date of your application for a buy-back.
It can also vary depending on your age and your annual pensionable salary on the date of your application for a buy-back.
For more information, please consult the Tariff schedules for certain service buy-backs regarding the cost of different types of service buy-backs.
Which salary do I have to enter in the Current annual pensionable salary field?
You must enter your annual pensionable salary on the date on which you enter it. The annual pensionable salary corresponds to the salary on the pay scale provided in the conditions of employment, and therefore, to that of a full-time job set on the basis of 26 salary payments.
To determine the pensionable salary, certain circumstances that may apply to plan members must be taken into account.
Which salary do I have to enter in the Buy-Back Cost Estimator tool if I am working part-time?
One job
In order to obtain an estimate that is as close as possible to reality, if you work part-time, the annual pensionable salary that you must enter in the Buy-Back Cost Estimator tool is the result of the following division (based on the information under section Employement in XXXX on the Statement of Participation): Pensionable salary / Years of service for the calculation of your pension.
Multiple jobs
If you work part-time and that you hold more than one position, in order to obtain the annual pensionable salary that you need to enter in the Buy-Back Cost Estimator tool, you must carry out the following calculation:
Total pensionable salary / Years of service for the calculation of your total pension
Example 1 :
| Employer | Pensionable salary | Years of service for the calculation of your pension | Contributions |
|---|
| Central Québec School Board | $30 359.48 | 0.4193 | $2714.05 |
| Collège Saint-Charles-Garnier | $4142.86 | 0.0860 | $327.12 |
| Total | $34 502.34 | 0.5053 | $3041.17 |
Example 1 applies to you if the total number of years of service shown on your Statement of Participation is less than 1.
In the example above, you must carry out the following calculation to obtain the amount to enter in the Buy-Back Cost Estimator tool:
$34 502.34 / 0.5053 = $68 280
Example 2 :
| Employer | Pensionable salary | Years of service for the calculation of your pension | Contributions |
|---|
| Collège Sainte-Anne-de-la-Pocatière | $50 354.18 | 0,6538 | $4601.54 |
| Centre de santé et de services sociaux de Rivière-du-Loup | $25 464.51 | 0,3462 | $2303.37 |
| Total | $75 818.69 | 1,0000 | $6904.91 |
Example 2 applies to you if the total number of years of service shown on your Statement of Participation is 1.
In the example above, you must carry out the following calculations and select the highest of the two results to obtain the amount that you need to enter in the Buy-Back Cost Estimator tool:
1) $50 354.18/0.6538 = $77 017
2) $25 464.51/0.3462 = $73 554
Highest result = $77 017
Why can I only obtain an estimate on this current date?
Because your data can change based on the date on which you apply for a buy-back. We can only provide you with an estimate on this current date.
Can I make an estimate of the cost of a buy-back for periods of absence and periods during which I worked as a casual employee at the same time?
Yes. Please note that an estimate of the cost of the buy-back and the amount added to the annual pension will be made for each period.
"Help" section for step 2 of the Buy-Back Cost Estimator Tool
Why am I not able to enter the percentage of absence and the number of days of absence for a period at the same time?
You must provide the details of your period of absence based either on the percentage of absence, or on the number of days of absence. When you fill out one of the fields, the other one will automatically be calculated.
For example, if you enter a period of absence from January 1, 2007 to Decembre 31, 2007 on a basis of remuneration of 260 days and indicate a percentage of absence of 50%, the field "Number of days of absence" will automatically indicate 130 days of absence.
Why is the annual pensionable salary per calendar year not always required?
The calculation method used to determine the cost of the buy-back for a period of absence under the RREGOP and the PPMP varies depending on certain criteria, such as the date of receipt of the application and the years relevant to the period to buy-back. Based on the applying calculation rule, the annual pensionable salary may be required or not to determine the cost of the buy-back.
When the calculation tool detects a situation for which the annual pensionable salary is mandatory, it makes the corresponding field available to allow you to enter that salary.
What is the basis of remuneration of my employment?
The basis of remuneration of 200 days applies to people teaching to elementary and secondary school students.
The basis of remuneration of 260 days applies to any other person who does not meet the definition of a basis of remuneration of 200 days.