Transfers Into SFPP
SFPP has a transfer agreement in place with the Local Authorities Pension Plan (LAPP). If you have earned prior service with LAPP, you may be eligible to transfer that service in order to increase your pensionable service with SFPP.
Pensionable service is a factor in the formula used to calculate your SFPP pension—the more pensionable service you have, the higher your pension payments and the sooner you may be eligible to begin collecting your SFPP pension. If this is something you’re interested in, you can submit a transfer application through the Secure Mailbox on mypensionplan.ca, by mail, or by fax.
If you have service with a Registered Pension Plan other than LAPP, you may be able to purchase all or some of that service under SFPP. Read more about Buying Service.
Cost of Transferring LAPP Service
All pension plans are "priced" differently. The benefit earned in LAPP might not match the cost of buying the same amount of service in SFPP. If your previous plan benefit costs at least as much as the SFPP benefit, you will not have to pay anything more, and the full amount of service will be credited to SFPP.
If the cost of buying SFPP service is more than the benefit from LAPP, the difference is called a shortfall. You'll receive credit for only a portion of the LAPP service, and you'll have the option to buy the difference. We'll send you a package with the details before you decide.
Please note: Removing your benefit from LAPP could have tax consequences. For service after 1989, tax rules require you to have adequate RRSP room for Past Service Pension Adjustments (PSPA) certification in order to proceed with your transfer.
Effect on Your Pension
Using the online Pension Estimator, compare 2 estimates (1 with the transferred service and 1 without) to understand the impact transferring service might have on your pension.
Bear in mind that your salary during the purchased years may also affect your Highest Average Salary.
Consider the effect that a Past Service Pension Adjustment (PSPA) might have on your Registered Retirement Savings Plan (RRSP) contribution room.
Transferred Service Upon Leaving the Plan
If you leave the Plan before turning 55 (and before you have 25 years of service) and choose to take your funds out of the Plan, your purchased service will not be used to calculate your Commuted Value (CV). Instead, you will receive a refund of what you paid to buy the service, plus interest. Please note that this could also result in you no longer being vested in SFPP.