Important notice: Please note that the rules for outstanding buybacks at the time of pension commencement are changing. The new rule states that if a member has an outstanding buyback payment and would like to start receiving their pension, the buyback must be paid for in its entirety prior to the member’s pension commencement date. This means that no further payments will be accepted after a member’s pension commencement date.
You may increase your future PSPP pension by buying prior service.
Examples of prior service could include:
- previous employment with your current employer; and
- previous employment with an employer who participates in another eligible Registered Pension Plan (RPP).
Your employer's Human Resources area will be able to tell you which types of past employment are eligible for purchase. You can also contact us if you have any questions about buybacks.
Your payments for prior service are tax deductible within the maximum limits set under federal tax rules.
If you have service or contributions on file with an RPP that doesn't have a transfer agreement with PSPP, or the option to transfer has expired, you may be able to take a lump-sum payout of those funds and buy some or all of that service under PSPP.
More Details About Buying Prior Service
Before you begin this process, there are many factors you will need to consider. We recommend speaking to a financial advisor before deciding to remove your benefit from your previous RPP. However, there are other important considerations which you should keep in mind: