Paying for Buybacks

There are many ways to pay for your leave of absence or prior service. Your Buyback Proposal will list all the options available to you, which may include:

  • pre-authorized debit lump sum payment or first instalment payment through your secure online account;
  • regular payroll deductions arranged with your employer (according to the number of instalments you choose on your Buyback Election);
  • payment via cheque to your employer for either the total buyback amount or a portion of it; or
  • transfer of funds from a registered retirement savings vehicle, such as a Registered Retirement Savings Plan (RRSP) or Locked-In Retirement Account (LIRA).

It’s important to pay attention to the deadlines outlined in your Buyback Proposal. Remember that if you miss the deadlines or decide not to buy back your service now, you may be eligible to purchase the service in the future but the cost will be higher. 

Paying for Only a Portion of Service

This is sometimes called prorating your service. For example, if the cost of buying 1 year of service is $10,000 and you inform us you will stop making payments after paying half—$5,000—you'll receive credit for about half a year of service. That's before any interest charges get factored in.

If you know before you make your election that you only want to pay for part of the service, tell us as soon as possible. We will give you a new proposal for less service to reduce the impact the Past Service Pension Adjustments (PSPA) will have on your RRSP room. If you have already started making payments when you decide to stop, the PSPA cannot be amended.

Leaving SFPP Before Completing Payment for a Buyback

You'll have 30 days from the date you leave the Plan to apply to purchase a leave of absence. If you intend to buy prior service, you must submit your application before you leave the Plan. You will be sent a Buyback Proposal and will have 90 days from the date you leave the Plan to complete your purchase.

If you're already buying a leave or making prior service payments, you'll have 90 days from the date you leave the Plan to complete your buyback purchase.