How Taking a Leave of Absence May Affect Your Pension

There are several reasons why you may need to take a leave of absence from work:

• pregnancy or parental leave due to a new addition to your family;
• emergency leave due to an illness or other emergency; or
• an injury that took place on the job

Absences Due to Pregnancy, Parental or Emergency Leave

Contributory Plans

If you are normally required to contribute to the pension plan, you will continue to participate in the plan while you are on leave. During your absence, you will keep earning (or accruing) pension benefits and your employer will still make contributions throughout this period, unless:

• you give written notice to your employer that you do not intend to make contributions for this period; or
• you provide written notice that you will not participate in the plan during your leave.

If you intend to earn benefits under the plan for this period of time, you and your plan administrator must come to an agreement about how your contributions will be paid. Even if you decide not to make contributions during your absence, you will still continue to be a member of the pension plan. However, your employer will not make contributions to the plan and you will not earn pension benefits while you are on leave.

Non-Contributory Plans

If you are not required to make contributions to the plan, you will still continue to participate in the pension plan and earn pension benefits during your absence.

Absences Due to Injury (and You are on Workers’ Compensation)

Contributory Plans

If you are required to contribute to the pension plan, you will continue to participate in the plan while you are on leave. During your absence, you will keep earning pension benefits for up to one year after the date of your injury, or any longer period set out in your plan’s terms. You and your employer will still make contributions throughout this period.

Non-Contributory Plans

Even if pension contributions are not a requirement, you will keep participating in the pension plan during your absence. While you are on leave, you will still earn pension benefits for up to one year after the date of your injury, or any longer period set out in your plan’s terms. Your employer’s contributions must continue to be made during this period.

Source: http://www.fsco.gov.on.ca/en/pensions/pension-plan-guide/pages/LE-Events-that-May-Affect-Your-Pension.html#leave-absence