CAAT Support members can purchase strike period

The recent work stoppage involving OPSEU CAAT Support staff took place from September 1 - 19. During this period, members of the CAAT Plan who participated in the strike did not make contributions to the Plan.

Members of the CAAT Plan who participate in a work stoppage remain active members during the strike period. However, any strike payments received while on strike are not considered pensionable earnings for the purposes of the pension plan. The strike period is considered a break in service, which can be purchased once the strike has ended.

Because of the “one-day rule” under the pension plan, a full-time member who works and contributes to the Plan for at least one day in a given month will earn that full month of service. Therefore if you took part in the 2011 OPSEU CAAT Support strike, you still earned service for the full month of September because you worked and contributed to the Plan in September after the strike ended. However, since you did not receive pensionable earnings for the period of time you were on strike, your pensionable earnings for September will only reflect your actual earnings when you returned to work.

How this affects your pension

The pension formula considers two factors: your pensionable service and your earnings, specifically your average pensionable earnings for the 60 consecutive months that your earnings were highest. The highest 60 months of earnings typically occur in the last 5 years before retirement, therefore if the month of September, 2011 is included in your highest 60 months of earnings, the reduced earnings in September because of the strike period could lower your average and, ultimately, your pension.

By purchasing the period of time you were on strike, you can restore your earnings for the month of September, maintaining your highest average pensionable earnings on which your pension is based.  

The cost of the purchase

The cost of purchasing the strike period is 2 times member contributions based on:

• Your annual rate of pay at the beginning of the strike, and
• The contribution rates in effect at the time of the purchase

The cost is 100% payable by the member, and the payment must be made in a lump sum. You can make the purchase at any time up to termination or retirement. Note that the cost of the purchase will increase when contribution rates increase, as they are scheduled to do in 2012, 2013 and 2014.

If you are considering making a purchase of the strike period, contact your Human Resources department to complete the 2011 Strike Purchase form.