We are transitioning to a new pension payment service provider

IF YOU TAKE AN UNPAID LEAVE

When you take an unpaid leave of absence from work, you create a gap in your pensionable service.


Since you don’t make contributions to the TPP while you’re away from work, you’re essentially putting your participation in the TPP on “hold” until you get back. As such, you don’t accumulate pensionable service while you’re away.

But, you can fill that service gap when you return to work by following a few simple steps.

Buybacks

A buyback — or, when you “buy back service” — lets you restore the pensionable service that didn’t accumulate for the period you were away. Think of it as “catching up” on contributions for that time away, so the period still counts toward your future pension.

Since your pension at retirement is based on your earnings and pensionable service, increasing your pensionable service may increase the amount of your annual pension, and in some cases, help you retire earlier!

  • Maternity Leave

  • Parental/Adoption Leave

  • Authorized Leave without Pay

  • Unpaid Education Leave

  • Unpaid Sick Leave

No matter when you decide to initiate a buyback, the payment options are designed to make it as easy as possible for you to buy back eligible service.

You can:

  • Transfer funds from a personal Registered Retirement Savings Plan (RRSP),

  • Set up payroll deductions so that you’re buying back service over the same length of time as the service you’re purchasing, or

  • Pay for the buyback of your eligible service in a single lump sum payment by personal cheque.

Depending on your financial situation, there may be income tax implications to buying back service, and the Canada Revenue Agency (CRA) can provide those details.

Call us once you’ve returned to work!

We will provide you with all the details you need to ensure you’re informed about your buyback options.

Timing is everything — there is a cost-effective time to buy back eligible service

The ideal, most cost-effective time to buy back eligible pension service is within 180 days of returning to work after an approved leave of absence.

Take action within 180 days

  • You’ll “catch up” on the contributions you didn’t make while you were on leave.

  • Your employer will match your contributions, making it less expensive to buy back the future pension benefits that the missed pensionable service represents.

  • By acting within this window, you’re making a smart, cost-effective choice to restore the future pension benefits tied to the service period you missed.

  • The buyback purchase contract must be signed within 180 days of your return to work.

When you wait more than 180 days

  • You can still buy back eligible service.

  • You’ll need to pay the full actuarial value of the future pension benefits that the missed pensionable service represents.

  • Your employer won’t match your contributions.
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