How to buy non-contributory service
Find out how to buy non-contributory service to potentially increase your future pension.
You may be able to increase your future pension by buying non-contributory service for a period when you worked for an employer participating in BC’s Public Service Pension Plan but were not making pension contributions.
For example, this could be when you were on probation or worked as a term, contract or auxiliary employee before joining the plan.
Buying non-contributory service increases the service that counts toward your pension. This may increase the monthly pension you receive when you retire or allow you to retire earlier.
Are you eligible?To buy non-contributory service, you must be an active plan member .
You cannot buy non-contributory service if you were eligible to join the plan but signed a waiver choosing not to join, on or after April 1, 2000.
How much will it cost?
The cost of buying non-contributory service is based on:
- The number of months of service you want to buy
- Your current full-time-equivalent salary
- The current employee and employer contribution rates
Sign in to My Account and use the personalized purchase cost estimator to get an estimate of the cost.
Your employer will pay its share of the total cost if:
- An employee/employer relationship existed during the period when you were not contributing to the plan
- You did not receive compensation instead of contributing to a registered pension plan
In all other cases, you are responsible for paying the entire cost.
What is the deadline?
You must apply to buy service within five years of the date on which you first contributed to the plan or before you leave your job, whichever comes first.
What is the process?
- Download the Purchase of service application form
- To generate a form pre-populated with your personal information, sign in to My Account and run an estimate in the personalized purchase cost estimator
- To generate a blank form, go to the Submit the Purchase of service application form page and download the Purchase of service application package; you will need to complete part A
- Print and sign the form
- Attach any required documents
- Send the completed form and documents to your current employer, who will complete part B and send the form to the Public Service Pension Plan
When we have processed your application to buy service, we will send you a statement showing:
- Total cost
- Payment due date
What are the payment options?
You must pay the full amount by the due date shown on the statement. You can pay by:
- Cash (cheque, money order or bank draft payable to the Public Service Pension Plan)
- Direct transfer from an existing registered retirement savings plan (RRSP) or locked-in retirement vehicle in your name
- A combination of cash, RRSP transfer and locked-in retirement vehicle transfer
You are responsible for ensuring the correct payment amount reaches the plan by the due date shown on the statement.
If you are paying by transferring funds from an RRSP or locked-in retirement vehicle, you will need to confirm with your financial institution that the exact amount owed has been transferred to the plan by the due date. You also need to ensure that your financial institution has not deducted service fees from your purchase of service payment, as this will result in an incomplete payment.
If you miss the payment deadline, you must continue to meet the eligibility requirements (including the original five-year time limit) and reapply to make the purchase before you leave your job.You will only receive a tax receipt if you pay by cash (cheque, money order or bank draft).