Purchasing Periods of Part-Time Service for Child or Family Care Reasons

If you did not apply, make an election and/or payment(s) within the specified deadlines to purchase the service on a contributions-based cost, you may be eligible to purchase it on an actuarial reserve-cost basis.

Please note, an actuarial reserve-based cost will be higher because the cost is calculated by determining the amount of money required today to pay for a member’s future pension associated to the period of service they are purchasing. In addition, employers are not required to pay any portion of a buyback that was calculated on an actuarial reserve-cost basis.

To purchase eligible periods service on an actuarial reserve-based cost, please complete the Service Record (Actuarial Reserve-Based Cost Application) with your SFPP employer.

Yes. If you would like to stop making payments, your pensionable service will be prorated based on the payment(s) that you have made.

If you terminate from participating in SFPP, you will have 90 days from your date of termination to make payments. If you do not pay in full within those 90 days, your pensionable service will be prorated based on the payment(s) that you have made.

For any questions related to any eligible period(s) of employment, please contact your employer.

For any other questions, please contact the SFPP Member Services Centre at 1-877-809-7377 (SFPP).

Adding pensionable service increases the value of your retirement benefit. The pensions of SFPP pensioners who purchase periods of eligible service will be retroactively increased from the pension commencement date.

Important Note: This is a unique window of time where eligible SFPP deferred members and pensioners can purchase pensionable service and have access to a contributions-based costing (see question #4 to learn about this type of costing and question #11 for an example).

Eligible periods of service for child or family care reasons that can be established as pensionable service under SFPP must meet all of the following conditions:

• You were employed on a part-time basis where your hours were temporarily reduced for you to care for your child(ren) or family member(s) and you must have returned, or intended to return, to your full-time position once the period of child or family care was complete.
• You were an active SFPP participant during the period(s) being purchased.
• You received less than an equivalent full-time pensionable service credit in SFPP during the period(s) being purchased.
• You were employed with your SFPP employer for at least 36 months (as referenced in the Income Tax Act) before the part-time or job-sharing period occurred.

Hours of work are considered to have been temporarily reduced if you worked in a job-sharing arrangement or on a part-time basis to care for your child or another family member. This reduction was temporary, with the expectation that you intended to return to full-time work once the period of child or family care was complete.

Deferred members/pensioners will pay the outstanding balance of SFPP contributions they would have paid during the applicable period of employment, had they been employed full-time. The employer will also pay their share of the contributions.

No interest will be applied historically to the deferred member’s/pensioner’s share of contributions.

If you temporarily reduced your hours to care for your child(ren) or family member(s), the difference between the reduced schedule and a full-time schedule is considered a leave of absence. The amount of leave service eligible to purchase under SFPP is subject to a maximum of five years, with an additional three years for periods of parenting, inclusive of any prior leave buybacks.

A period of parenting is the 12-month period immediately following the date of birth or adoption of your child.

If you have periods of eligible service that exceed the five-year and three-year limits, as applicable, you may still be eligible to purchase that service on an actuarial reserve cost basis. However, an actuarial reserve-based cost will be higher because it is calculated based on the amount of money required today to pay for a member’s benefit associated with the period of service they are purchasing, and the employer does not contribute to this cost.

Your Buyback Proposal will outline the available payment options, which may include:

• Lump sum payment via cheque, money order, or bank draft to SFPP; or
• Lump-sum transfer of funds from your registered retirement savings vehicle, such as a Registered Retirement Savings Plan (RRSP) or Locked-in Retirement Account (LIRA).

If you purchase a portion of the eligible service, your pensionable service will be prorated based on the payment(s) that you have made.

If an eligible deferred member or pensioner does not apply or make an election and/or payment within the specified deadlines to purchase the eligible period(s) of service, they will no longer have the opportunity to purchase the eligible period(s) of service.

In the event the dates provided by the member do not align with the dates on file, the employer will follow up with each member to verify the information.

You will have 180 days from the date of the Buyback Proposal to make an election and payment(s). The election and payment deadlines will be clearly stated in the Buyback Proposal.

If you do not make an election and/or payment within the specified deadlines to purchase the eligible service, you will no longer have the opportunity to purchase the eligible service.

For questions related to any eligible period(s) of employment, contact your former employer. For other inquiries, contact the SFPP Member Services Centre at 1-877-809-7377 (SFPP).

Example 1: A member joined SFPP on January 1, 2020, and worked full-time. On January 1, 2022, the member switched to a part-time role at 50% full-time equivalency (FTE) to care for their young child. The member returned to a full-time position on January 1, 2025. Subject to the five-year and three-year limits explained above, this member can purchase the balance of eligible service for the period from January 1, 2023, to December 31, 2024 (i.e., 1 year of eligible service), as the 36-month prior employment requirement was not met until January 1, 2023.

Example 2: A member was in a full-time position and changed to a part-time role on January 1, 2022, temporarily reducing their hours to 50% FTE to care for an elderly parent. The member returned to a full-time position on January 1, 2025. Subject to the five-year and three-year limits explained above, this member can purchase additional service for the period of part-time employment.

Based on the above example, this member would be eligible to purchase the balance of eligible service for the period from January 1, 2022, to December 31, 2024 (i.e., 1.5 years of eligible service).

Job-Sharing Period: January 1, 2022 - December 31, 2024
Work Percentage while Job-Sharing: 50% full-time equivalent
Annualized Pensionable Salary (on a full-time basis): $120,000/year
Pensionable Salary (in a job-sharing capacity): $60,000/year

Pensionable service earned in 2022: 0.5000 years
Pensionable service earned in 2023: 0.5000 years
Pensionable service earned in 2024: 0.5000 years
Total service earned in 2022 – 2024: 1.5000 years

Service eligible for purchase in 2022: 0.5000 years
Service eligible for purchase in 2023: 0.5000 years
Service eligible for purchase in 2024: 0.5000 years
Total service eligible for purchase: 1.5000 years

Member buyback cost: 1.5000 years X $120,000 x 13.45% (SFPP member contribution rate in 2022 - 2024) = $24,210

Employer buyback cost: 1.5000 years X $120,000 x 14.55% (SFPP employer contribution rate in 2022 - 2024) = $26,190

Eligible periods of service for child or family care reasons that can be established as pensionable service under SFPP must meet all of the following conditions:

• You were employed on a part-time basis where your hours were temporarily reduced for you to care for your child(ren) or family member(s) and you must have returned, or intended to return, to your full-time position once the period of child or family care was complete.
• You were an active SFPP participant during the period(s) being purchased.
• You received less than an equivalent full-time pensionable service credit in SFPP during the period(s) being purchased.
• You were employed with your SFPP employer for at least 36 months before the part-time or job-sharing period occurred.

Please see question #8 for examples of eligible periods of service.

Hours of work are considered to have been temporarily reduced if you worked in a job-sharing arrangement or on a part-time basis to care for your child or another family member. This reduction was temporary, with the expectation that you would return, or intended to return, to full-time work once the period of child or family care was complete.

In simple terms, the member will pay the outstanding balance of SFPP contributions they would have paid during the applicable period of employment, had they been employed full-time. The employer will also pay their share of the contributions.

No interest applied historically to the member’s share of contributions for eligible periods from January 1, 2022 to December 31, 2024.

If you temporarily reduced your hours to care for your child(ren) or family member(s), the difference between the reduced schedule and a full-time schedule is considered a leave of absence. The amount of leave service eligible to purchase under SFPP is subject to a maximum of five years with an additional three years for periods of parenting, inclusive of any prior leave buybacks.

A period of parenting is the 12-month period immediately following the date of birth or adoption of your child.

If you have periods of eligible service that exceed the five-year and three-year limits, as applicable, you may still be eligible to purchase that service on an actuarial reserve cost basis. However, an actuarial reserve-based cost will be higher because it is calculated based on the amount of money required today to pay for a member’s benefit associated with the period of service they are purchasing, and the employer does not contribute to this cost.

Your Buyback Proposal will outline the available payment options, which may include:

• Regular payroll deductions arranged with your employer (according to the number of installments you choose on your Buyback Election);
• Payment via cheque to your employer for either the total buyback amount or a portion of it; or
• A lump-sum transfer of funds from your registered retirement savings vehicle, such as a Registered Retirement Savings Plan (RRSP) or Locked-in Retirement Account (LIRA).

If you purchase a portion of the eligible service, your pensionable service will be prorated based on the payments that you have made.

For any questions related to any eligible period(s) of employment, please contact your employer.

For any other questions, please contact the SFPP Member Services Centre at 1-877-809-7377 (SFPP).

No, you will not need to apply to purchase service for eligible periods occurring on or after January 1, 2025. Your employer will submit the details to SFPP on your behalf, and you will receive your Buyback Proposal in the mail. Please ensure your mailing address is up to date by logging into your secure online account to verify your contact information and update, if necessary.

Example 1:A member enrolls with SFPP on January 1, 2020, and is employed on a full-time basis. The member moves into a part-time capacity at a 50% full-time equivalency (FTE) on January 1, 2022, in order to allow for them to take care of their young child. The member then returns to a full-time position on January 1, 2025. Subject to prescribed limits, this member would be eligible to purchase the balance of eligible service for the period from January 1, 2023, to December 31, 2024 (i.e., 1.5 years of eligible service), as the 36-month prior employment requirement was not met until January 1, 2023.

Example 2:  A member was in a full-time position and changed to a part-time role on January 1, 2022. Their hours were temporarily reduced to a 50% FTE to allow for them to care for their elderly parent. The member then returned to a full-time position on January 1, 2025. Subject to prescribed limits, this member would be eligible to purchase additional service during the period of part-time employment.

Based on the above example, this member would be eligible to purchase the balance of eligible service for the period from January 1, 2022, to December 31, 2024 (i.e., 1.5 years of eligible service).

Job-Sharing Period: January 1, 2022 - December 31, 2024
Work Percentage while Job-Sharing: 50% full-time equivalent
Annualized Pensionable Salary (on a full-time basis): $120,000/year
Pensionable Salary (in a job-sharing capacity): $60,000/year

Pensionable service earned in 2022: 0.5000 years
Pensionable service earned in 2023: 0.5000 years
Pensionable service earned in 2024: 0.5000 years
Total service earned in 2022 – 2024: 1.5000 years

Service eligible for purchase in 2022: 0.5000 years
Service eligible for purchase in 2023: 0.5000 years
Service eligible for purchase in 2024: 0.5000 years
Total service eligible for purchase: 1.5000 years

Member buyback cost: 1.5000 years X $120,000 x 13.45% (SFPP member contribution rate in 2022 - 2024) = $24,210

Employer buyback cost: 1.5000 years X $120,000 x 14.55% (SFPP employer contribution rate in 2022 - 2024) = $26,190

You will have 180 days from the date of the Buyback Proposal to make an election and payment(s). The election and payment deadlines will be clearly stated in the Buyback Proposal.

If you do not make an election and/or payment(s) within the specified deadlines to purchase the service on a contributions-based cost, you may be eligible to purchase it in the future on an actuarial reserve-cost basis.

Please note, an actuarial reserve-based cost will be higher because the cost is calculated by determining the amount of money required today to pay for a member’s future pension associated to the period of service they are purchasing. In addition, employers are not required to pay any portion of a buyback that was calculated on an actuarial reserve-cost basis.

To purchase eligible periods service on an actuarial reserve-based cost, you can complete the Service Record (Actuarial Reserve-Based Cost Application) with your SFPP employer.