Paying for Buybacks

There are several ways to pay for your leave of absence or prior service. Your Buyback Proposal will list all the options available to you and include:

• Pre-authorized debit. You have an option to make a lump sum payment or your first installment payment through the Buyback Purchase tool in Your Pension Profile by completing a pre-authorized debit form.
• Regular payroll deductions arranged with your employer (according to the number of installments you choose on your Buyback Election);
• Payment via cheque for a lump-sum payment of either the total buyback amount or a portion of it; or
• Transfer of funds from a registered retirement savings vehicle, such as a Registered Retirement Savings Plan (RRSP) or Locked-In Retirement Account (LIRA).

Payments must be made according to the schedule on your Buyback Proposal. You can also pay for the entire amount in one payment. If you miss these timelines, you may still be able to purchase the service for a higher cost.

Active buyback proposals that are available for purchase can be viewed by logging in to Your Pension Profile at the top right corner of the website and selecting Buyback Purchase from the drop-down menu.

Can I Pay for Only a Portion of My Service?

Yes, this is sometimes called prorating your service.

For example, if the cost of buying one year of service was $10,000 and you decided to stop making payments after paying $5,000, you would receive credit for about half a year of service (before any interest charges are taken into account).

You can choose to purchase only a portion of your buyback before making any payments or after you have already begun to make payments.

What If I Leave PSPP Before I Complete Paying for My Buyback?

If you intend to buy prior service, you must submit your application before you leave the Plan.

If you want to purchase service from a leave of absence, you need to apply within 30 days of the date you leave the Plan.

If you are already paying for a leave or making prior service payments, you'll have 90 days from the date you leave the Plan to complete your purchase.

What If I Decide to Retire Before I Complete Paying for My Buyback?

Regardless of the timelines provided above, if you plan to retire, all buybacks must be paid for in their entirety prior to your pension commencement date. This means that no further payments will be accepted on or after your pension commencement date.

If the buyback is not paid in full prior to your pension commencement date, the buyback will be prorated and only pensionable service that is paid for will be credited.

If you are on a Leave Without Salary (LWOS) and decide to retire, there will not be an option to apply to purchase the LWOS service on or after your pension commencement date.