If you wait after a year in which you are a member of the public service retirement plan to opt for redemption, this is a late choice. You must complete the voting form and submit it within one month of the date you signed it. If you opt for a pension transfer, you authorize the transfer not only of your accumulated pension under the public service pension plan, but also, if applicable, of the amounts payable under the pension compensation agreement. Most employers outside the public service do not have a pension compensation scheme. In this case, the part of the compensation agreement is paid directly to you and you must pay income tax on the amount collected. Before you opt to buy back the service, you should have an estimate of what your previous Service of the Government of Canada Pension Centre will cost, shortly after you become a member of the Public Service Retirement Plan. They can provide you with information and a cost estimate before the deadline of your choice. You can also use the service buyback appraiser in web-based compensation applications to estimate the cost of buying back services and see the impact on your future retirement. If the deadline is approaching and your estimate has been delayed by the retirement centre, you should consider the choice without an estimate. The public service retirement plan does not require an estimate, so failure to meet a plan does not affect your time frame for a normal choice.
The method and assumptions used to calculate this transfer value (in current dollars) may vary depending on the terms of each pension transfer agreement. Applications for pension transfers must be submitted within the contract deadline (usually one year). If you are no longer employed by an employer and are participating in one of your current employer`s retirees, you may be able to transfer your pension credit to your new pension plan. A PTA is a method to make this transfer. In order to participate in such an agreement, a PEZ must have been signed between the Canadian government and an external employer. The agreements are negotiated on behalf of the Canadian government through the Policy and Advisory Services Division of the Government of Canada Pension Centre. Before you apply for a pension transfer, review the provisions and benefits of your new employer`s plan and compare them to those in the public service pension plan to determine whether it is in your best interest to transfer your pension credits rather than opting for a deferred pension, for example. Factors such as health care and available dental care in retirement need to be carefully considered. Be sure to consider your retirement options before making your decision. If a portion of your service, which was contracted by a former employer under a pension transfer contract, is not recognized by the public service pension fund, you can buy it back.
If you leave the public service for another employer, you can, among other things, transfer your accumulated pension under the public service pension plan, in accordance with the general transfer rules or a pension transfer contract, to your new employer`s pension plan, provided that employer has such an agreement with the Canadian government. You can accumulate up to 35 years of retirement service, including: If your new employer or potential employer has not yet entered into a pension transfer contract with the Canadian government but is interested, this employer may apply to the Treasury Board Secretariat`s pension and benefits sector. Please note that this may take some time and you only have one year after you leave the public service to choose a transfer value.