Why service matters

Taking a leave from work can create a gap in your service. During this time, you do not earn:

• Pensionable service which affects how much you receive when you retire, or
• Contributory service that determines if your pension is reduced and by how much

You may be able to buy back this service and increase your pension.

Types of service you can buy

Note: Eligibility rules, processes, and deadlines may vary for each type of service. Review the leave types below for more information.

Leave of absence

This is the most common reason for a gap in service. This includes general leaves and Employment Standards Act (ESA) leaves such as maternity, parental, and compassionate care.

You have options when you buy service for a leave. You can make a lump-sum payment after you return to work or, for ESA leaves, choose continuous contributions and make payments throughout your leave.

Non-contributory service

Time you worked for a plan employer but were not making contributions, such as a probationary period. In these cases, you can buy non-contributory service.

Child-rearing credit

If you took time away from work to raise your child under the age of seven, you can receive credit for up to five years of contributory service. You can apply for the child-rearing credit at no cost.

Arrears

Arrears are missed contributions during a time when you and your employer should have been contributing to the plan. Depending on the type, you may be able to buy your portion of arrears.

Restrictions

You cannot buy service for any of the following:

• Time that exceeds your normal working hours
• Service that exceeds the Income Tax Act (ITA) limits for pension and RRSP contributions
• Time during a strike or work stoppage
• Time that is not an approved leave

Deadlines

Application deadlines may vary. For most types of service, the deadline to apply is whichever comes first:

• Five years from the end of the period you want to buy, or
• 30 days after leaving the employer where the service occurred

To make continuous contributions you must apply within 30 days of starting the leave. 

Your next steps

Once you’ve identified the type of service you want to buy, you can choose the next step that works for you:

• Get a cost estimate online and see how buying service may impact your pension
• Submit a form to buy service to officially start the process and get a quote
• Make a decision based on the cost and tax implications of buying service
• Make a payment when you’re ready to complete your purchase