Before you started participating in occupational retirement, you may have accumulated services in the public service or with another employer. You may be able to buy back this service to increase your pension. As soon as it is redeemed, the service is included in your pension service which will be used to calculate your pension. After 35 years of retirement, your contribution rate for the rest of your service drops to 1% of your salary. Even if you stop collecting a pension, your pension is calculated based on your salary during that period. Under the income tax provisions of the Registered Pension Plan Act, the public pension plan limits the amount of the seniority pension, with the exception of unpaid sick leave, to a maximum career amount of five years. The government will follow all non-salary leave that you accept on January 1, 1996 to ensure that you do not exceed the five-year maximum. In addition to redemption contributions, you must also repay all pensions you received after your first year as a member of the pension fund to the previous plan. In addition, you must continue to pay all amounts that you can still pay under the previous plan. If you are no longer employed by an employer and are participating in one of your current employer`s retirees, you may be able to transfer your pension credit to your new pension plan. A PTA is a method to make this transfer.
In order to participate in such an agreement, a PEZ must have been signed between the Canadian government and an external employer. The agreements are negotiated on behalf of the Canadian government through the Policy and Advisory Services Division of the Government of Canada Pension Centre. It is important to note that you can only transfer your accumulated pension credits if you have not received a pension under the RCMP pension plan (for example). B a transfer value or an immediate pension). If you have left the RCMP and are entitled to an immediate pension, you may not be able to transfer pension credits through a PEZ, depending on the terms of the current PTA. You are asked to confirm your authorization with your employer`s current pension plan. However, those who were members of the plan prior to January 1, 2013 will not remain in the terms of the retirement plan until 2013 if they are reinstated to the federal public service on January 1, 2013, in the following situations: Each plan has its own rules and limits for mutual transfers. Exchange transfer agreements are as follows: If you make a normal choice, that is, if you make a choice within one year of your election as a member of the public service pension fund, your redemption contributions are based on your rate of pay when you became the last time you were a member of the public service pension fund. The cost of buying back services increases after the first year of membership, as your salary increases and interest continues to rise. Therefore, it is more advantageous for you to make your choice in the first year.
An exception to the five-year rule is leave without pay for educational reasons. In addition to the five years of unpaid absence recognized for retirement purposes, plan members may also be credited under the plan with up to three additional years of unpaid leave for educational purposes. Only unpaid parental leave, which occurs in the year following the birth or adoption of a child, can be included for the continuation of the additional three years. During leave without payment, you can count the leave period as a pension service, provided you make the necessary contributions and the leave is allowed.