Purchasing or buying back credit
What are the benefits to buying credit?
As a new member, you might be able to increase the amount of pension you’ll receive by purchasing additional pension credit, also known as a "buy back". Purchasing credit might also help you retire earlier.
How do you know if you have service you can purchase or buy back? Here are some of the most common types of service new members purchase. Keep in mind this list isn’t exhaustive. You may also benefit from speaking to our Client Care Centre to better assess your pension situation and determine if your past service is eligible.
- Work for an employer that contributes to the PSPP or the OPSEU Pension Plan, but you did not contribute to either plan?
- Work for a non-PSPP employer and were a member of another registered pension plan in Canada?
- Take an unpaid leave of absence for more than 30 days when you didn’t contribute while on leave?
- Contribute to the PSPP or the OPSEU Pension Plan and receive a payout of the full amount when you ended your employment?
If you answered "yes" to any of the above, give us a call to explore your options.
- Buying back credit may help you reach a target amount of retirement income, and it may allow you to retire earlier (if you meet eligibility requirements)
- Like other PSPP credit, buying back credit can provide a survivor benefit to your loved ones, (if eligible)
- Like other PSPP credit, purchased credit is payable for life and is protected against inflation
- You can choose how much credit you want to buy back; you can buy it all, some or none
How do I buy the credit?
If you’re eligible to buy back credit, the first thing you need to do is fill out and send application form OPB1043 – Application to Purchase Pension Credit (PDF). We'll review it and let you know if you’ve been approved, along with the cost to complete the purchase.
Depending on your previous employment and eligibility, there are a few ways you can buy back credit: personal cheque, direct transfer from a registered savings plan or pension plan, or payroll deduction.
We recommend applying as soon as possible: the cost increases over time for most eligible buyback periods. If you’re interesting in buying credit for past OPS employment, you should do it within 24-months of joining the PSPP if possible.