Members > Estimator > Service Buyback Estimator

How to use the Service Buyback Estimator

Using the Estimators

You will need to enter specific data about your service and earnings and the Service Buyback Estimator will provide you with the approximate cost of a service purchase based on the information you input.

1. Have up-to-date information at hand:

A copy of the pamphlet, Purchasing Past Service: A Buyer's Guide for your reference.
Your most recent Member's Annual Pension Statement to determine the amount of your pension contributions plus interest, your Pensionable Earnings and service history. To ensure you receive the most up to date calculation, you'll have to add on the contributions and earnings that have accrued since your statement date. If you can't find a recent statement, you can get a copy from your college's HR department.

2. Enter the required information on the Member Data screen:

Your name and ID number are optional - include them if you are printing your calculations on a shared computer, to ensure you receive the correct copy.
Your date of birth is required. The Estimator uses it determine your eligibility for and the cost of your buyback.
Your Pensionable Service can be found on your Member's Annual Pension Statement. You will have to enter your service for two separate periods:
- The Pensionable Service you earned between January 1, 1992 and December 31, 2007 (this cannot be more than 16 years), and
- The Pensionable Service you earned before January 1, 1992
The Estimator will automatically calculate the service you earned after 2007. (For help determining months as a percentage, click on one of the pull-down menus in the last column of Section A). Note that for the current year, the Estimator cannot project Pensionable Service beyond the current month.
You do not need to enter your contributions with interest if you are estimating a buyback cost.

In the second part of the Member Data screen, you will need to complete either:

Section A), your salary history and Pensionable Service if you are Full-Time; or
Section B), your Highest Average Pensionable Earnings (from your most recent Member's Annual Pension Statement) if you are Other Than Regular Full-Time.

For the current year only, enter the total salary you expect to earn this year and enter the Pensionable Service you earned this year up to today's date (the date of calculation). For example, if you are a Full-Time member, and you doing a calculation in May, select 0.42 (5 months).

3. Choose your Calculation

Select the Service Buyback box. You will then need to enter the amount of Pensionable Service you wish to buy back. If you click on Reset, the screen will be cleared of the information you entered.

After you receive your Service Buyback estimate, you can re-do your pension or Commuted Value calculation. The Estimator will show you your estimated pension or Commuted Value and will give you the option to see it with the buyback purchase included or excluded. This way, you can determine how buying back past service can affect the pension or Commuted Value you can expect to receive from the Plan and will help you make a more informed decision about whether or not a buyback is right for you.

At any time you can return to the Member Data screen to modify the information you input.

Limitations of the Service Buyback Estimator

The Service Buyback Estimator is limited to calculating the "current actuarial cost" of buybacks. This is usually the cost incurred if you choose to purchase service 6 months or more after the period ended. If you are purchasing service before the 6 months is up, please contact your College HR department.

Note that by following the link below, you acknowledge that you have read and agree with the disclaimer.

June 2009