Temporary Part-Time Work Arrangement

In late 2020, the Supreme Court of Canada ruled in Fraser v. Canada (Attorney General) that members of a federal government pension plan were eligible to buy back full-time pension credit for periods of employment when they temporarily reduced their working hours.

If you temporarily reduced your working hours (e.g., from full-time to part-time) under an arrangement agreed with your employer during a period of active PSPP membership, you may be eligible to buy back full-time pension credit.

Full-time credit can be bought back for a temporary part-time work arrangement only if the following criteria are met:

• Your part-time working arrangement was temporary
• You and your employer agreed to the terms of the temporary part-time work arrangement, including its duration, in advance
• The conditions in the federal Income Tax Act are met, which include:
  • 36-month minimum service rule: A member may only accrue full-time credit for a period of reduced pay if the member has been employed with the employer (or a predecessor employer) for at least 36 months at the start of the period. Please note that the 36-month rule has been suspended for periods in 2020 and 2021.
  • Five-year limit cumulative limit on eligible periods of temporary absence and/or reduced pay: The maximum amount of post-1990 credited service that a member can accrue for unpaid leaves of absence and periods of reduced pay is five years (plus an additional three years for child rearing). Any credit that is bought back as a temporary part-time work arrangement (i.e., the difference between the part-time hours worked and the hours prior to that arrangement) is included in this maximum limit.

A new buyback window has been established to give retired members the option of purchasing full-time credit for periods of eligible temporary part-time work arrangements that took place during active membership, with employer-matched contributions. This window will close on July 31, 2023, and buyback applications will not be accepted after that date.

Learn more about TPTWA.