During your career, you may have periods of time when you did not contribute to the PSSP, such as approved leaves. If so, you may have gaps in your pensionable service which can impact your pension and retirement date.
PSSP members may be permitted to buy back service with a current or previous PSSP employer to increase their pension amount and/or to retire sooner. All purchases are subject to the rules of the Canada Revenue Agency (CRA).
IMPORTANT: Purchases of prior service must be completed within 20 years from the end of the period of service.
Eligible prior service purchases include:
Prior refunded/paid out service with a participating PSSP employer:
You may re-establish a prior period of pensionable service that was previously credited under the PSSP by repaying the previous refund or transfer received, plus interest.
Costing – this is the total amount of the refund/transfer plus interest from the date of removal from the plan to the date the costing is calculated. You are responsible for paying the full cost.
Periods of service during which the member was not contributing to the PSSP:
You can purchase non-contributory service that occurred within the last 20 years as long as you worked at least 4 consecutive months and worked at least 40% of full-time hours.
Non-contributory service includes:
- Part-time service
- Casual service
- Temporary service
- Leave Without Pay (any authorized leave of absence from the employer)
If you are purchasing non-contributory service less than 10 years since the end of the period of service, the cost is shared between you and the employer you worked for during the period of service you wish to purchase. You must pay the contributions plus interest, as provided in the purchase quote. The employer must pay an amount matching your cost.
If you are purchasing non-contributory service that is within 10 to 20 years since the end of the period of service, you must pay 100% of the actuarial cost of the prior service.
You cannot purchase prior service that ended more than 20 years ago.
Service with other pension plans:
You may be able to purchase prior contributory service with a recognized public authority, in accordance with Income Tax Act (ITA) rules. To be eligible, you must have contributed to a registered pension plan during the period in question. You are responsible for paying 100% of the actuarial cost.
How do I purchase prior service?
To purchase prior service, please complete the following forms located on our Forms page and return them to our office.
- Public Authority Service – Purchase Questionnaire Form (FORM.0047)
- Purchase of Prior Service Form
Methods of payment:
Payment may be made by one of these methods:
- Transfer funds from a registered source, i.e. RRSP or former Registered Plan; or
- Lump sum cash payment (subject to income tax rules).
Special Notes:
Service post-1989: Elections to purchase post-1989 service may require the Nova Scotia Pension Services Corporation to prepare a Past Service Pension Adjustment (PSPA), which has to be approved by Canada Revenue Agency (CRA).
Statements of cost are valid for two (2) months only from the date on the statement. After the two months, either additional interest is applicable, or in the case of an actuarial calculation, a new calculation must be prepared.