Cost and payment for past service

Understanding the cost

Buying past service typically costs more than other types of service, such as general or parental leaves. The cost is calculated by the BC Pension Corporation, following Standards of Practice prescribed by the Canadian Institute of Actuaries and approved by the Public Service Pension Board of Trustees. The full cost is paid by you.

How the cost is calculated

The cost to buy past service depends on:

• Your current age
• Your salary when you apply
• The amount the plan needs today to cover the future costs of the increase to your pension

Get your cost

To find out how much it will cost, complete the Past Service Purchase Application and send it to your current employer. Your employer will complete their section and submit the application to the plan.

If eligible, you’ll receive a Statement of Cost that includes:

• The total cost
• The estimated increase to your pension
• Due date
• Next steps

If you’re registered for My Account, you’ll receive an email notification when your Statement of Cost is ready in My Account. If not, we’ll mail it to you.

The purchase cost estimator in My Account is not available for past service estimates.

How to pay for past service

Follow the payment instructions listed on the Statement of Cost. You can use a combination of these payment methods:

• RRSP, locked-in retirement account (LIRA) or life income fund (LIF)
• Cash (electronic funds transfer, draft, cheque, or money order)
• Funds from a former registered pension plan (RPP)

Using funds from a former pension plan

If you contributed to another RPP during the past service period and choose to buy this service, you must use those funds toward your purchase.

How funds are transferred depends on the plan type:

• Defined benefit: Funds must first be transferred to a LIRA, LIF, or RRSP before being sent to us.
• Defined contribution: Funds may be transferred directly to us.

Do not remove any funds until you’ve received your Statement of Cost and you’re ready to finalize the purchase.

If the funds from the former RPP don’t cover the full cost, you can use other payment methods to make up the difference.

Partial payments

If you choose not to buy the full period, any partial payments will apply to service starting with the earliest period and working forward.

If you’re making a partial payment, use your existing Statement of Cost. Enter the amount you plan to pay on the Invoice page and, if applicable, the RRSP Transfer form. You do not need to request a new statement to match your partial payment amount.