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Service Buyback Package
Changes were made to the public service pension plan effective January 1, 2013. For more information on the changes to the pension plan, visit the Information concerning changes to the public sector pension plans page of the Treasury Board of Canada Secretariat Web site or contact the Government of Canada Pension Centre.
We appreciate your patience while we gradually update all of our videos, publications and Web sites to reflect these changes.
This package provides you with information about elections to purchase prior pensionable service also known as buying back service.
A service buyback is a legally binding agreement to purchase a period of prior service to increase your pensionable service under the Federal public service pension plan. It may include a period of prior Federal Public Service or pensionable employment, with another employer. Refer to Prior Service for further details.
Normally, you may buy back service at any time while you are employed in the Federal Public Service and contributing under the public service pension plan. Cost and other requirements may vary, depending on the type of service and when you make the buyback. The type and period of service has to be verified before the service buyback is approved.
You may only accumulate up to a maximum of 35 years of pensionable service. This 35 year maximum includes the following types of service:
- Service for which you contributed to the public service pension plan. This includes both current contributory service and service which you have purchased (service buyback) or transferred from another pension plan;
- Service under the Canadian Forces pension plan;
- Service under the Royal Canadian Mounted Police pension plan.
When any of the elective service you are buying back occurred on or after January 1, 1990, a Past Service Pension Adjustment (PSPA) calculation must be performed. A PSPA greater than $50.00 must be certified by the Canada Revenue Agency (CRA) before that service can be counted as pensionable under the public service pension plan. Refer to Tax Implications for further details.
Making the Decision to Buy Back Service
Explore these links to learn more about buying back service:
The Administrative Process
When you decide to buy back service, familiarize yourself with the following so that you are comfortable with the process:
