There are many ways to pay for the service you might wish to purchase. Your Buyback Proposal will list all the options available to you, which can include:
- regular payroll-deductions arranged with your employer (according to the number of installments you choose on your Buyback Election);
- payment via cheque for a lump-sum payment of either the total buyback amount or a portion of it; or
- transferring funds from a registered retirement savings vehicle, such as a Registered Retirement Savings Plan (RRSP) or Locked-In Retirement Account (LIRA); taxes are not withheld on these types of transfers.
- Would you like the form to transfer funds from an RRSP or LIRA to LAPP?
Can I Pay For Less Than the Whole Amount?
You may have a set amount of money you want to pay towards your buyback, or perhaps your finances change before you are finished paying, and you decide you no longer wish to make payments. You can pay for a portion of the service you wish to buy instead of the full amount. This is sometimes called prorating
For example, if the cost of buying one year of service was $10,000 and you decided to stop making payments after paying $5,000, you would receive credit for about half a year's service (before any interest charges get factored in).