Take a leave of absence
Take a leave of absence
Throughout your career, you may work less than full time or take a leave of absence. These gaps can affect your pension because you won’t be making contributions or building service.
Through a service buyback, you can purchase missed service to increase your pension and keep your retirement on track.
Service buyback benefits:
- Increase your pension
- Increase pension benefit for your survivors
- Possibly retire earlier
- Qualify for an unreduced pension sooner
Good to know
✓ You don’t have to buy all the service at once; purchase some now and the rest later.
✓ There are many convenient payment options.
✓ The purchase may be tax deductible. Check with CRA to confirm your tax situation.
Considerations
✗ You pay the full cost. Your employer does not contribute.
✗ Some service is not eligible. For example, contract employment.
✗ The longer you wait, the higher the cost as age and salary factor into the calculation.
Eligibility
You may be able to buy back pensionable service for these periods:
- Leave of absence
- On loan or educational
- Canadian Forces Reserves
- Leave without pay
- On the job injury and getting workers compensation (WCB)
- Lay-off (including strikes)
- Part-time or casual work (e.g., you worked part-time for 0.6 of a year; you can buy the remaining 0.4)
- Leaves not purchased at the time (e.g., maternity, parental, or adoptive)
- Periods of employment that were refunded to you (employer must still participate in the plan)
- Period between your employment start date and fund entry date if not eligible to enter the fund (must have worked at least half time)
Note: If you are on leave with pay, your employer is deducting contributions and insurance premiums (if applicable).
Estimating the cost
Service buyback costs depend on your age and salary at the time of the application. The longer you wait and the higher your salary, the more it will cost.
You can get an estimate three ways:
- Online Services
- Call or email us
- Using the cost estimate chart on this page
We can send an estimate by mail or to your Online Services account. There’s no obligation to buy. Choose what’s best for you.
Example
A member took a year-long leave of absence to pursue her diploma. Now that she’s back at work, she wants to know if it’s worth buying back that year.
Salary: $60,000
Age: 50
Cost to buy: $11,100
Annual pension increase: $960
Time to recoup: 11.5 years
While we can’t predict life spans, this member’s retirement could last 20 to 30 years or more. A buyback could benefit her for decades into retirement.
Remember the value of the increase will go up as her salary increases. In other words, the member’s $960 increase will grow over time.
How to request information
You can request cost information for a service buyback any time before you stop working. Complete the form. Upload it to your Online Services account or send it to CSSB by mail.
Form
Payment options
Flexible payment options include one or a combination of these:
Lump sum payment:
- Transfer from your RRSP, a Manitoba Locked-In Retirement Account (LIRA), or Money Purchase Plan
- E-transfer
- Personal cheque
Bi-weekly installments (payroll deductions):
- The minimum bi-weekly payment is the greater of 4% of bi-weekly earnings or the amount needed to purchase service over a maximum of 10 years.
- You can apply lump sum amounts to bi-weekly installments and pay down the principal earlier.
- You can cancel the bi-weekly payments any time.
Tax implications
Lump sum and bi-weekly payments may be tax deductible. For details, contact CRA at 1.800.959.8281.
Many life changes can affect your pension. Explore the different events below to learn more. Contact CSSB if you have questions.
Take a leave of absence
Throughout your career, you may work less than full time or take a leave of absence. These gaps can affect your pension because you won’t be making contributions or building service.
Through a service buyback, you can purchase missed service to increase your pension and keep your retirement on track.
Service buyback benefits:
- Increase your pension
- Increase pension benefit for your survivors
- Possibly retire earlier
- Qualify for an unreduced pension sooner
Good to know
✓ You don’t have to buy all the service at once; purchase some now and the rest later.
✓ There are many convenient payment options.
✓ The purchase may be tax deductible. Check with CRA to confirm your tax situation.
Considerations
✗ You pay the full cost. Your employer does not contribute.
✗ Some service is not eligible. For example, contract employment.
✗ The longer you wait, the higher the cost as age and salary factor into the calculation.
Eligibility
You may be able to buy back pensionable service for these periods:
- Leave of absence
- On loan or educational
- Canadian Forces Reserves
- Leave without pay
- On the job injury and getting workers compensation (WCB)
- Lay-off (including strikes)
- Part-time or casual work (e.g., you worked part-time for 0.6 of a year; you can buy the remaining 0.4)
- Leaves not purchased at the time (e.g., maternity, parental, or adoptive)
- Periods of employment that were refunded to you (employer must still participate in the plan)
- Period between your employment start date and fund entry date if not eligible to enter the fund (must have worked at least half time)
Note: If you are on leave with pay, your employer is deducting contributions and insurance premiums (if applicable).
Estimating the cost
Service buyback costs depend on your age and salary at the time of the application. The longer you wait and the higher your salary, the more it will cost.
You can get an estimate three ways:
- Online Services
- Call or email us
- Using the cost estimate chart on this page
We can send an estimate by mail or to your Online Services account. There’s no obligation to buy. Choose what’s best for you.
Example
A member took a year-long leave of absence to pursue her diploma. Now that she’s back at work, she wants to know if it’s worth buying back that year.
Salary: $60,000
Age: 50
Cost to buy: $11,100
Annual pension increase: $960
Time to recoup: 11.5 years
While we can’t predict life spans, this member’s retirement could last 20 to 30 years or more. A buyback could benefit her for decades into retirement.
Remember the value of the increase will go up as her salary increases. In other words, the member’s $960 increase will grow over time.
How to request information
You can request cost information for a service buyback any time before you stop working. Complete the form. Upload it to your Online Services account or send it to CSSB by mail.
Form
Payment options
Flexible payment options include one or a combination of these:
Lump sum payment:
- Transfer from your RRSP, a Manitoba Locked-In Retirement Account (LIRA), or Money Purchase Plan
- E-transfer
- Personal cheque
Bi-weekly installments (payroll deductions):
- The minimum bi-weekly payment is the greater of 4% of bi-weekly earnings or the amount needed to purchase service over a maximum of 10 years.
- You can apply lump sum amounts to bi-weekly installments and pay down the principal earlier.
- You can cancel the bi-weekly payments any time.
Tax implications
Lump sum and bi-weekly payments may be tax deductible. For details, contact CRA at 1.800.959.8281.