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:
|Type of Leave||Percentage of contributions||Percentage of actuarial cost|
|An absence for taking an academic or professional course of study or engaging in an activity approved as an equivalent||100%||50%|
|Unpaid sick leave||100%||50%|
|Compassionate Care leave||200%||100%|
|Any leave of absence not otherwise specified above||200%||100%|
* 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.