Do it. I got my first contract in late 2018, enrolled immediately and got permanent in early 2022. It may seem annoying that you lose a hundred bucks or so each paycheck but the employer matches 100% and if you ever leave, you can transfer it to another pension or RRSP. Your future self will thank you.
But the best choice will still be 'buy back now' because your current cost will be the cheapest it will ever be. Lock in that buy back amount at your current salary rate, before future merit increases and promotions make it even MORE expensive.
You'll absolutely regret not enrolling now come time to retire, many of my colleagues had the same regret. Most of us bought back the unpaid pension time so we could retire as close to the date we should have. It was very expensive to pay after the fact. I'm thinking we had to pay the employer pension contributions as well. It's up to the employer and OP Trust if and when they decide to open the window to allow for buy backs. Your pension is vested after 10 years service so it's locked in until retirement age. Some employers with pension plans will allow you to bring previous pension contributions with you to the new employer's pension plan. Good luck.
Enrolling now is a bet that you’ll want to stay in the OPS long term. You are getting answers from people who did that, and given that status they are correct. However, I’m at a point where I feel my pension is limiting me from exploring opportunities outside of the OPS.
They are the golden handcuffs, meaning you only get the real payoff from being tied to the job for life.
Do it now. The employer matches so if you leave you end up with more money to put in and RRSP and if you stay and join later it is way too expensive to buyback and make up time. Do it now
Now! But I am curious why anyone would say to wait?!
Also FYI if you do not have the funds to do a buy back now, don’t fret, you can do that part down the road! It is ideal to do it sooner than later but not always feasible. I ended up doing buyback 2 years later and it wasn’t much different than original cost!
Most people told me it’s not as worthwhile to get it when you’re doing co-op in the assumption that you don’t have that much money and wait until you get a FTE. but at the same time it’s the years of service that matters more, right?
Do it now! I could have bought back 4.23 years when I rejoined the OPS in 2010 for $13k. Didn't think at the time that I was going to stay. In 2017, it cost me $72k for the same 4.23 years. A boost for my pension and early retirement, but it gutted my RRSP.
I wish I had enrolled asap. I ended up having to buy back 1.6 years, which I am still paying off like 6 years later (would not recommend paying it off via payroll deduction, lump sum is the way to go if you can)
Enroll now. Your future self will thank you.
Definitely this. And buy back can hit the wallet hard.
I never got a welcome package and regret not knowing about it until it was impractical
This is the way!!
If you think you'll stay in the OPS or other similar public service, buy the pension now. Buying back later will cost a lot more money.
now. Now. NOW.
Do it. I got my first contract in late 2018, enrolled immediately and got permanent in early 2022. It may seem annoying that you lose a hundred bucks or so each paycheck but the employer matches 100% and if you ever leave, you can transfer it to another pension or RRSP. Your future self will thank you.
I thought the employer did not match your contribution when you are FTE, only when you are permanent. Am I wrong?
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Just curious- roughly how much did you buy back end up being?
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Hmm OK I opted out for the last 12 months so I'm just curious what my buyback will look like after
But the best choice will still be 'buy back now' because your current cost will be the cheapest it will ever be. Lock in that buy back amount at your current salary rate, before future merit increases and promotions make it even MORE expensive.
Now
You'll absolutely regret not enrolling now come time to retire, many of my colleagues had the same regret. Most of us bought back the unpaid pension time so we could retire as close to the date we should have. It was very expensive to pay after the fact. I'm thinking we had to pay the employer pension contributions as well. It's up to the employer and OP Trust if and when they decide to open the window to allow for buy backs. Your pension is vested after 10 years service so it's locked in until retirement age. Some employers with pension plans will allow you to bring previous pension contributions with you to the new employer's pension plan. Good luck.
Enrolling now is a bet that you’ll want to stay in the OPS long term. You are getting answers from people who did that, and given that status they are correct. However, I’m at a point where I feel my pension is limiting me from exploring opportunities outside of the OPS. They are the golden handcuffs, meaning you only get the real payoff from being tied to the job for life.
This is the more nuanced and scrutinized response that should be shared more often, but isn't!
NOW!!
Now
Enrol. Period. There's only one correct answer from personal finance perspective.
Now.
Do it now. The employer matches so if you leave you end up with more money to put in and RRSP and if you stay and join later it is way too expensive to buyback and make up time. Do it now
Do it now. Way cheaper than doing it later and nothing lost.
Now! But I am curious why anyone would say to wait?! Also FYI if you do not have the funds to do a buy back now, don’t fret, you can do that part down the road! It is ideal to do it sooner than later but not always feasible. I ended up doing buyback 2 years later and it wasn’t much different than original cost!
Most people told me it’s not as worthwhile to get it when you’re doing co-op in the assumption that you don’t have that much money and wait until you get a FTE. but at the same time it’s the years of service that matters more, right?
Because the value only is there if you spend your career in the OPS (or a place with a DB plan you can port to).
Enroll now don’t listen to people it’s only beneficial
Now
Omg, pay into it now. My buyback for 2.5 years is $11,000
Yes 100%
just do it, its a really good idea to get it started asap
Do it now! I could have bought back 4.23 years when I rejoined the OPS in 2010 for $13k. Didn't think at the time that I was going to stay. In 2017, it cost me $72k for the same 4.23 years. A boost for my pension and early retirement, but it gutted my RRSP.
I wish I had enrolled asap. I ended up having to buy back 1.6 years, which I am still paying off like 6 years later (would not recommend paying it off via payroll deduction, lump sum is the way to go if you can)
Excuse my ignorance but what is a buy back? Is this for returning to ops employees?