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.

You may be permitted to purchase outside service, prior service, and/or leaves of absence. Eligible purchases include:

• Outside service 
  • Service with other pension plans or outside teaching services recognized by the NS Department of Education
  • Must have at least two years of pensionable service in TPP in order to apply.
     
• Prior refunded service 
  • Reinstates prior service that has been previously refunded.
  • You must have worked a minimum of 50 pensionable teaching days in order to apply.
     
• Leaves of Absence (e.g. Parental leave, general leave approved by your employer)
  • You must have 150 consecutive teaching days prior to a break in service and be a vested Plan member to be eligible to purchase service.
     

What is the cost to purchase prior service?

The chart below outlines the cost Plan members would be responsible to pay when purchasing prior service depending on the scenario:

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

When can I 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 service depending on the type of service you are purchasing.

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.

How do I pay for period of 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.

Repayment of Refunds 

If you are returning to your teaching career in Nova Scotia after previously receiving a refund from the TPP, you may decide to buy back your service in the TPP.

To do so, you must be re-employed for at least 50 days within the jurisdiction of the TPP before you can repay a refund. CRA has imposed two rules regarding the repayment of refunds.

If you were vested at the time of the original refund, the funds for repayment must come from an RRSP or another tax-sheltered vehicle.

If you were not vested at the time of the original refund, the funds do not have to be transferred from an RRSP and can come from any source.

You will be required to pay interest in addition to the amount you received as a refund. All of your service will be reinstated.