Make a decision on buying service

Explore the factors involved when buying service and what you should consider. Buying service can potentially increase your future pension.

Tax considerations

When you buy service, the value of your pension increases. This can affect your tax situation and might change your RRSP contribution room.

The increased value of your pension counts against your RRSP contribution room for the year. So, if you increase your pension by buying service, you will decrease the available RRSP contribution room by the same amount.

We’ll inform you about the change by providing a past service pension adjustment, which you will see on a statement that we send to you.

You may want to seek advice from an independent financial planner before deciding to buy service.