How to transfer service between public sector plans
You may be able to transfer your eligible service if you are joining or leaving the plan.
Calculating the value of your service
When you apply to transfer service between plans, your new pension plan will calculate the value of the service they will give you credit for.
Differences in pension service value between plans
The service you transfer into BC’s Teachers’ Pension Plan from another plan (or vice versa) may not have equal value in both plans, due to:
- Different pension formulas in each plan
- Salary differences between your old and new jobs
As a result, the service you receive credit for under your new plan may not equal the service you accumulated under your original plan.
If the value of the service you are transferring from your original plan is less than the cost of buying the same service in the new plan, there is a service shortfall. The potential for a service shortfall exists each time you transfer service between public sector pension plans, even if you are returning to a plan you previously belonged to.
Paying for a service shortfall
If you're transferring service into the Teachers' Pension Plan and there is a service shortfall, you can pay for the shortfall and be credited with full service for the transfer period. You must pay for any service shortfall in one lump sum and within a specific timeframe.
If you do not want to pay for the service shortfall, you will be credited with pro-rated pensionable and contributory service based on the amount of service transferred.
Calculating the value of your pension
If you transfer service from your former pension plan to the Teachers' Pension Plan, your eventual pension will be calculated using:
- The combined eligible service from all plans (this may be adjusted if there is a shortfall)
- Your five-year highest average salary from only the Teachers' Pension Plan
- Your age at retirement