Buying Back Service Estimator Disclaimer
This Is Not A Calculation of Actual Service Purchase Cost
The results of using this service cost tool is not a calculation of your actual cost to buy service, because that actual cost may change from the time you use this estimator until you make your purchase. What this tool allows you to do is to input what you guess could be your possible service purchase scenarios, and it then applies the current PSPP rules and other current, assumed pension calculation factors to your input. The results are intended to illustrate the approximate differences between varying service purchase scenarios you have thought about—your actual cost based on the service you ultimately choose to purchase could turn out to be quite different from these numbers.
As a result, the information you provide and the results that are created are for your information only, and are not reviewed, audited or verified by PSPP or PSPP's administrator, Alberta Pensions Services Corporation (APS), and are in no way binding on PSPP or APS regarding the eventual calculation of any service you may decide to purchase.
More Information About Limitations of The Buying Back Service Estimator
This estimator only allows you to estimate the cost of purchasing up to 20.01 years of service. If you would like an estimate of the cost to purchase more than 20.01 years of service, please contact us.
The cost of purchasing most types of optional service is determined on an actuarial reserve basis. This means that the cost will be based on the anticipated value of a future pension benefit. This method is extremely sensitive to changes in the prevailing interest rate.
The method of estimation, including the methods for projections and averaging of salary levels, also depends upon whether or not you have two years of pensionable service. The estimations are further affected by whether the years of service plus the years being purchased would allow you to retire with a full pension at an earlier age than the average retirement age. This means that some seemingly insignificant inaccuracies or variations in information you input can cause some very different results.
Note also that not all service being costed may be eligible for purchase. As there are certain restrictions contained in the federal Income Tax Act that affect the amount of pre-1990 service that you can purchase, and there are different plan provisions in respect of pre-1992 service, we have limited the estimator to calculate the purchase of post-1991 service only. Please contact APS directly if you want to purchase pre-1992 service or if your current earnings exceed the salary cap.
Seek Professional Advice About Service Purchase Decisions
You should not rely on these estimations in making any decisions or taking any action with respect to your PSPP pension. Seek advice from a qualified financial advisor before relying on any speculative pension calculation, or exercising any purchase option.
Should you decide to purchase a period of eligible optional service, the actual cost of purchasing that service can only be determined when your employer, on your behalf, requests that APS provide you with a formal Notice of Cost. The Notice of Cost will set out the cost of the optional service as well as the terms by which it may be purchased. You should have this Notice of Cost information with you when discussing this matter with your financial advisor.
Get More Information or Use the Estimator
To get more information before using the Buying Back Service Estimator, contact APS.
By clicking the "Buying Back Service Estimator" button below, I confirm I have read, and understand the above information and limitations, and want to use the Buying Back Service Estimator.
APS strives to ensure all information built into this estimator is accurate. However, your pension entitlement is always limited by what is allowed by the PSPP rules, so any inaccuracy in, or misunderstanding of comparative pension information arising from this estimator cannot increase the benefits otherwise available to you under the PSPP rules.
