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.

Deadlines for buying service

Make note of the deadlines to buy service. Missing these deadlines could mean you lose the chance to increase your future pension by buying service.

Buying service sooner may allow you to save money. That’s because the cost to buy service is based on your current salary and contribution rates at the time you apply to buy service.

Making continuous contributions during your leave

If your leave falls under the Employment Standards Act, you can choose to make continuous contributions during your leave. Your employer will also make contributions.

To choose this option, you must apply within 30 days of starting your leave.

Buying service with a lump sum after your leave

As long as you continue working for a plan employer, you have five years to buy your service. If you are buying the full period of your leave, the five-year window starts as soon as your leave ends.

If you leave your job within that five-year window and are not starting a job with another employer in the Teachers’ Pension Plan, you have 30 days from the end of your employment to buy service.

Example: Scott returned from an eight-month leave on January 1, 2022.

As long as Scott is an active plan member, he has until January 1, 2027, to buy service for the leave. However, if Scott decides to stop teaching on May 1, 2022, he will only have until May 31, 2022, to buy his service.

Buying a one-year portion of a multi-year leave

If you are buying a one-year portion of a multi-year leave, the five-year window begins at the end of portion you are buying. You do not have to wait until your leave ends to buy a one-year portion of a multi-year leave.

Example: Wei has been on leave since October 1, 2020.

She wants to buy service for the first year of her leave (October 1, 2020 to September 30, 2021). As long as Wei doesn’t leave her job in the plan, she has until September 30, 2026, to make the purchase.