How to buy arrears
Find out how to buy arrears if there was a period when you and your employer should have contributed to the plan but didn't.
How to buy enrolment arrears
You may have enrolment arrears if:
- Your enrolment in BC's Public Service Pension Plan was mandatory, but you didn’t start contributing when first required to do so
- Your enrolment was optional and you joined the plan but didn’t start contributing from your date of eligibility
- Your enrolment in the plan (on or after April 1, 2000) was optional, but you didn’t sign the waiver to opt out of the plan
- You signed the waiver to opt out of the plan, but then decided to enrol in the plan and did not start contributing on the date you enrolled
- You were employed at the same time by more than one employer participating in the plan but did not contribute to the plan through all your employers
How much will it cost?
The cost of buying enrolment arrears is based on:
- The length of the arrears period
- Your current full-time-equivalent salary
- The current employee and employer contribution rates
To find out how much it will cost, complete and submit the Purchase of service application form. We will send both you and your employer a statement showing how much you each need to pay.
Your employer must immediately pay its share to the plan. You can decide if you want to pay your share. You have 90 days from our written notice to pay.
If you pay your share, you will get credit for:
- The full pensionable service
- The full contributory service
If you do not pay your share, you will get credit for:
- Half the pensionable service
- The full contributory service
The statement we send can help you estimate how much your monthly pension benefit may increase if you purchase the enrolment arrears period.
What is the process?
- Download the Purchase of service application form and complete part A
- Print and sign the form
- Attach any required documents
- If you worked for a former employer that participated in the plan during the employment arrears period you are buying, send the form to that employer to complete part C and return it to you
- Send the completed form and documents to your current employer, who will complete part B and send the form to the plan
When we have processed your application to buy enrolment arrears, we will send you a statement showing your cost and the payment due date. We will also send a statement to your employer showing its cost and due date.
What is the deadline?
The payment amount quoted in your statement is guaranteed for 90 days. If you miss the payment deadline, you must reapply to make the purchase within five years of the original statement or before you leave your job, whichever comes first.
What are the payment options?
You must pay the full amount by the due date shown on the statement of cost. You can pay by:
- Online banking from your personal bank account
- Cheque, money order or bank draft (payable to Public Service Pension Plan)
- Transfer from an existing RRSP or locked-in retirement vehicle in your name
- A combination of the above options
You will only receive a tax receipt if you pay by online banking, cheque, money order or bank draft.
You are responsible for ensuring the correct payment amount reaches the plan by the due date indicated on the statement. If you miss the payment deadline, you must continue to meet eligibility requirements, including the original five-year time limit, and reapply to make the purchase.
How to pay from an existing RRSP or locked-in retirement vehicle
If you wish to pay by transferring funds from an RRSP or locked-in retirement vehicle, your financial institution must make this transfer to the plan on your behalf. You should instruct your financial institution to send the exact amount owed to the plan by the due date. Ensure that your financial institution does not deduct service fees from your purchase of service payment, as this will result in an incomplete payment.
How to pay through online banking
The following financial institutions are set up for online banking with BC Pension Corporation:
To pay an invoice online:
- Sign in to your financial institution's online banking service.
- Under Add a payee, select BC Pension Corporation.
- For your account number, type in your Person ID (PID) number. (You can find your Person ID number on your purchase invoice or statement of cost.)
If you need help making your payment through online banking, contact your financial institution.