Voluntary Contributions
Members of the STRP who are actively teaching under a contract of employment may make voluntary contributions to the STRP. Voluntary contributions are optional contributions to the pension plan that are separate from regular teacher contributions.
Like Registered Retirement Savings Plan contributions, voluntary contributions are tax deductible for income tax purposes and can be an important part of your retirement planning. Alternatively, your accumulated voluntary contributions may be used to purchase eligible pension service in the STRP, such as for a leave of absence for parenting purposes.
Voluntary contributions will not increase your monthly pension from the STRP.
How to Make Voluntary Contributions
Voluntary contributions may be made through regular payroll deductions by providing your school board with a completed Authorization for Voluntary Contributions Through Payroll Deductions form, or by a lump-sum payment directly to the Plan. Voluntary contributions for any one calendar year cannot exceed the annual maximum limit allowed under the Income Tax Act. For tax purposes, voluntary contributions made in a calendar year will be shown on your T4 slip.
You may also transfer in funds from another registered retirement plan any time you are under contract or in receipt of benefits from the Teachers’ Long-Term Disability Plan. The STRP will accept the transfer of locked-in funds only if the funds are locked in under The Pension Benefits Act, 1992, Saskatchewan.
Voluntary contributions are credited to your voluntary contributions account and earn the pension fund’s net rate of return. The balance in this account must remain in the Plan until the earlier of your termination from the Plan, your retirement date or December 1 of the year you attain age 71.