Pensionable time to buy back?
NBTA Credit Union offers Pension Buy Back Loans at Prime Rate.
You can purchase your pensionable time back with a loan and place the funds into an RRSP at Vestcor. You can take up to 5 years to pay back the loan. The first year is at prime rate with the option of interest only payments. When it comes up for renewal it will change to the going loan rate at that time for the remaining 4 years. Typically, we see members place their income tax refund down on the loan to lower the balance owing before it comes up for renewal. RRSPs help you reduce your taxable income and save more for retirement.
All of our loans are open loans meaning you can put extra payments on or pay them off early without penalty. There is a $100 administrative fee from the Credit Union for this loan.
You’ll need to speak with Mike Butler, Dave Gorman and/or Vestcor before applying with us as we will need to know the amount, you’re able to buy back and form #T2151 to complete and send to Vestcor with the RRSP transfer.