Member FAQs
Frequently Asked Questions About the 2027 PSPP Enhancements
Starting January 1, 2027, several enhancements to the Public Service Pension Plan (PSPP) will take effect.
These enhancements recognize that careers and retirement patterns are changing. More people are choosing to work longer, change jobs throughout their careers, or delay retirement. The enhancements are designed to provide greater flexibility and help members get more value from their PSPP pension.
The enhancements will happen automatically. There is no action required on your part.
Good to know: Contribution rates are not changing as a result of these enhancements.
On This Page
Immediate Vesting
Learn how new members will be entitled to the value of their future pension benefits from the day they join PSPP.
Removal of the 35-Year Combined Pensionable Service Limit
Learn how members can continue building pension benefits beyond 35 years of pensionable service.
Working Beyond Age 65
Learn how PSPP will better recognize members who choose to delay retirement beyond age 65.
Immediate Vesting
What is changing?
Starting January 1, 2027, members will be entitled to the full value of their future pension benefits they have earned from the day they join PSPP.
Why is this enhancement being made?
Career paths are not always predictable. This enhancement ensures members begin building future pension value immediately, regardless of how long they stay in the Plan.
Who benefits from this enhancement?
This enhancement is especially valuable for members who leave PSPP with less than two years of pensionable service.
I currently have less than two years of pensionable service. Does this apply to me?
Yes. If you are an active PSPP member on January 1, 2027, you will automatically become entitled to the future pension benefits you have earned.
What if I leave my employer before the change, and do not have two years of service?
If you have less than two years of pensionable service when you leave PSPP before January 1, 2027, you may leave your funds in the Plan. If you return to work with a PSPP employer on or after January 1, 2027, you will automatically qualify for a future pension benefit.
Do I need to do anything?
No. The enhancement will be applied automatically.
Removal of the 35-Year Combined Pensionable Service Limit
What is changing?
Starting January 1, 2027, the 35-year pensionable service limit will be removed from PSPP rules.
Why is this enhancement being made?
More members are choosing to continue working after reaching 35 years of pensionable service. This enhancement allows those members to continue building pension benefits for as long as they work in a PSPP-participating position.
How could I benefit from this enhancement?
If you continue working in a PSPP-participating position, you can continue building pension benefits beyond 35 years.
What does this change mean for me if I have already reached the current 35-year pensionable service limit?
Starting January 1, 2027, if you are working in a PSPP-participating position, you and your employer will resume making contributions. In return, you will once again earn pensionable service and continue building your pension while you remain employed.
Do I work in a PSPP participating position?
If your current position is contributing to PSPP, it is a participating position. If you stopped contributing to PSPP because you reached the 35-year service limit and you are still working in the same position, you will be required to resume making pension contributions beginning January 1, 2027, because your position remains a participating position under the Plan.
When will contributions resume?
Contributions will resume effective January 1, 2027, aligning with your employer’s 1st pay period of 2027.
Are contribution rates changing?
No. The contribution rates paid by members and employers are not changing.
Can I choose not to contribute?
No. Participation requirements are not changing. Members who work in a PSPP-participating position must continue participating in the Plan, and cannot opt out.
I have already reached 35 years of pensionable service and stopped contributing. Can I be grandfathered under the current rules?
The change will apply to all active PSPP members as of January 1, 2027. Members who continue working after reaching 35 years of pensionable service will resume making contributions and will earn additional pension benefits in return. To ensure the rules are applied consistently across the plan, there is no grandfathering provision.
Can I purchase pensionable service for the period after I reached the 35-year limit and stopped contributing?
You may be eligible to purchase that period as prior service, subject to applicable legislative and Plan requirements.
How do I apply to purchase prior service and how much will it cost?
Complete a PS137 – Service Record form with your employer and submit it to PSPP to start the application process.
The cost of buying prior service is based on the amount required today to fund the future pension connected to that period of service. If you are eligible to purchase the period of service, you will receive a Buyback Proposal.
The Buyback Proposal will tell you how much it will cost you to buy the service and the payment options available to you.
Where can I learn more about purchasing prior service?
Visit our Buying Prior Service page for information about eligibility, costs and the application process.
How could continuing to earn pensionable service benefit me?
Continuing to earn pensionable service allows you to continue building your pension beyond the current 35-year pensionable service limit. Pensionable service is one of the factors used to calculate your pension benefit, so additional years of pensionable service may increase the value of your future pension. The impact will depend on your individual circumstances, including your pensionable salary and how long you contribute to PSPP.
How does the removal of the 35-year limit affect me if I have Combined Pensionable Service (CPS) with UAPP AND MEPP?
PSPP has CPS relationships with the Universities Academic Pension Plan (UAPP) and the Management Employee Pension Plan (MEPP). The removal of the 35-year limit on combined pensionable service is a PSPP change. PSPP will no longer cap the pensionable service earned at 35- years in the pension benefit calculation; however, UAPP and MEPP are governed and administered separately under their respective Plan rules.
If you are active in PSPP or in a PSPP participating position, you will be required to contribute to PSPP until your termination of employment or December 30th the year you turn 71 years old, whichever is sooner.
For more information on CPS by going to pspp.ca / members / your pension / CPS
Visit our Examples & Illustrations page to see illustrations showing how additional service can increase a future pension.
Working Beyond Age 65
What is changing?
Starting January 1, 2027, PSPP will better recognize members who retire from being an active PSPP member and choose to delay starting their pension beyond age 65.
Why is this enhancement being made?
More members are choosing to remain in the workforce beyond age 65. This enhancement helps ensure pension benefits better reflect a member’s later retirement date.
Who may benefit from this enhancement?
Members who retire from being an active PSPP member, continue working, and delay starting their pension beyond age 65.
If members are age 65 or older and create a CPS relationship by moving between PSPP and MEPP or UAPP, they will not receive an increase for delaying the start of their pension after age 65. This is because the CPS relationship provides other pension benefits and advantages. For more information on CPS by going to pspp.ca / members / your pension / CPS
What does this mean for me?
If you continue working beyond age 65, delay starting your pension, and retire from PSPP active membership, the pension you receive will better reflect the fact that you retired at a later age.
Do I need to apply for this enhancement?
No. The enhancement will be applied automatically when your pension is calculated.
Can I benefit from both the age 65 enhancement and the removal of the 35-year pensionable service limit?
Yes. If you continue working beyond age 65, you may continue earning pensionable service beyond 35 years and potentially benefit from both enhancements.
How much could this increase my pension?
The impact will depend on your individual circumstances, including your salary, pensionable service and retirement date. Visit our Examples & Illustrations page for illustrative examples.