STRP Focus on Equity: Longer Interest-Free Period for Parental Leave Purchases
Members have been asking for improvements to parental leave purchases, and we heard you! We know that finances can be tight after coming back from parenting leave. That’s why the STRP will be doubling the interest-free period for parental leave purchases from one year to two years following the end of your leave. Still need extra time? No problem! We are also eliminating retroactive interest so any purchase made after the interest-free period ends will still benefit from those two years being interest-free. That means no interest in the first two years following the end of your leave, regardless of when you make the purchase.
The same change is also being made to compassionate leave purchases.
This is great news for those new (or future) parents! It also improves equity, since all members will benefit from those two interest-free years, rather than only those members who can afford to purchase their leave right away.
This change will apply to any leaves purchased after July 1, 2024, even if the actual leave took place before that date. If you’re looking for information on purchasing a leave of absence and reasons why you might want to do it, visit the STRP e-Guide to learn more or contact our office to request a purchase quote. Once you have a quote, you can use the STRP Pension Estimator to see how the purchase will affect your pension amount and retirement date (hint: likely higher and sooner).