Leaves of Absence - Purchasing Prior Service

You may be eligible to purchase a period of prior service for time when you were away on an authorized leave for which you did not pay contributions to the TPP. Purchasing a period of prior service could increase your years of service and allow you to retire earlier or with a larger pension amount.

The following are examples of prior service purchases:

• Periods of absence from your employment, e.g. maternity leave, parental leave or study leave.

• Service for which you previously received a refund from the TPP.

You can purchase prior service:

• Within one year of returning to work, you may pay the total of missed contributions plus interest (plus employer contributions, if applicable);

• If you wait more than one year after the leave ends, you will have to pay either 50% or 100% of the actuarial cost of the prior service.

Under the Income Tax Act, a Plan member can purchase periods of absence up to a maximum total of five years, plus up to three more years for maternity or parental leave.

The cost of purchasing prior service:

The chart below explains the actuarial cost* and the percentage of contributions which Plan members are responsible to pay when purchasing prior service:
 

* The actuarial cost is the present value of the additional pension you will receive as a result of your purchase.

How to pay for purchasing prior service:

If the service is recognized under the TPP as a purchasable item, you may make payment with either a personal cheque to Nova Scotia Teachers’ Pension Plan or transfer the funds via a method acceptable under the Income Tax Act.